Developing resilient finance strategies and solutions
Vision
Commodity trading companies face a myriad of challenges in securing essential financial liquidity for their business. The complexities arise from banks applying a broad range of underwriting criteria as well as very rigorous and time consuming KYC and credit processes. Restrictions applied are a mix of minimum equity requirements, geographical coverage, constraints related to specific commodities, eligibility of collateral or financing structures.
This landscape is influenced by significant regulatory pressures that are placed on commodity banks. These banks experience regulatory pressure related to meeting the capital requirements under Basel III and IV, the prevention of financial economic crime (money laundering, sanction violations, financing of terrorism, etc.) and ESG targets and reporting requirements. An increased cost burden on their Trade & Commodity Finance franchise has raised minimum income requirements that banks impose on their clients and a general increase of interest margins and fee structures. Due to this diverse set of factors that influence bank decision making, bank processes have become very slow and sometimes non-responsive to client needs.
At Vollebregt Advisory we guide our clients through this intricate lender landscape as well as the broad range of debt solutions that exist. We assist in making an implicit corporate strategy explicit in a way that shows the ambition of your company as well as your competitive advantage in the market. The finance requirements and finance strategy naturally follow from this. We translate your finance strategy into a clear set of requirements that Lenders need to meet or that a certain debt instrument needs to meet. The requirements can relate to the size of a facility, pricing, level of commitment, flexibility in use and other structure elements. Our aim is for our clients to be in control of their destiny and to be in the driver’s seat when arranging the right credit facilities or debt instruments for the future of their business.