Corporate Financing Advisory Services

Private Equity

Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity. Capital for private equity is raised from retail and institutional investors, and can be used to fund new technologies, expand working capital within an owned company, make acquisitions, or to strengthen a balance sheet.

The majority of private equity consists of institutional investors and accredited investors who can commit large sums of money for long periods of time. Private equity investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event such as an IPO or sale to a public company.

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CC Limit and OD Limit

For business owners looking for some financial flexibility, one of the more inviting options is a secured line of business credit. Such a line of credit provides a business owner with the funds to buy equipment, fund special projects, maintain steady business operations, or deal with any financial needs that may arise. Unlike a loan, a line of credit can be used without reapplying each time funds are needed, since a line of credit is a continuous source of finance that is used much like a credit card (yet typically without a monthly bill).

A line of credit can be especially helpful in covering fluctuations in cash flow, as the business owner can use the available funding to maintain working capital until the inventory sells and receivables are collected. By continuing to finance the business at a steady pace, the business owner can keep growing the business. Essentially, by paying back just the interest, a company can keep the line of credit (essentially an advance) in use and leverage the cash on hand.

An overdraft is a borrowing facility attached to your bank account, it is set at an agreed limit and paid over an agreed period. It is ideal for your day-to-day expenses, particularly to see you through cashflow problems. Many Businesses use an overdraft for thier working capital, helping them buy stock, pay staff, etc, in order for their business to function.

An Overdraft is likely to cost more than a loan for a long-term purchase. Also, there could be stiff charges if you exceed your overdraft limit and the bank has the right to ask for repayment for the amount you are borrowing at any time. It is important for businesses to monitor spending carefully and not to exceed their limit as it would result in them paying much more then they initially borrowed.

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Project Financing

Project Finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. Usually, a project financing structure involves a number of equity investors, known assponsors, as well as a syndicate of banks or other lending institutions that provide loans to the operation. The loans are most commonlynon-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling.[1] The financing is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has difficulties complying with the loan terms.

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