Re-profiling of liabilities
The principle of financial conformity establishes that short-term sources of financing (less than one year) should finance short-term applications (investments), and long-term sources should finance long-term applications.
Banks prefer to make short-term loans to reduce their risk, and companies are tempted to take short-term financing because the rates and guarantees may be lower.
The problem is that some companies suffer temporary profitability crises that may cause banks not to renew their credit quotas, and in these scenarios there is a serious liquidity risk.
We can help you refinance your liabilities with banks, improving terms, rates and guarantees. This allows you to free up cash flow to grow your business, pay dividends or simply sleep easier.
We have developed relationships with different financial institutions, capital providers and second-tier banks to help you improve your financing conditions.
For more information please contact us.