Bank credit and financing strategy

The work plan for building an optimal financing environment includes the following topics: credit requirements, banking communications, financing solutions, and financial risks. When building a healthy financing environment for the company, we set up a program that relates to credit facilities, financial risks, credit costs, and of course non-bank financing alternatives. The basic working assumption is that credit lines are the foundation upon which is the company's operations are based. The work plan for the building of an optimal financial environment, includes the following topics:
  1.   Examination of the credit requirements of the company appropriate to its particular business characteristics
  2.   Building a healthy infrastructure for communication with the bankers
  3.   Finding banking and non-banking solutions, to meet the financing needs of the company
  4.   Reducing exposure to financial risks such as changes in exchange rates or commodity prices
  5.   Reducing borrowing costs


Existing funding In the first stage, we analyze all the components of the entire financing of the company:
  • Bank financing
  • Non-bank financing
  • Financing by means of suppliers
  • Funding by the owner
Funding will be broken down into their constituent components according to the duration of the financing, whether permanent or repayable, the linkage basis, and whether it locks in its pledged assets.
Defining Needs In the second phase, we define the financing needs of the company in accordance with items it uses:
  • Working capital
  • Fixed Assets
  • Accumulated losses
  • Withdrawals by the owner
Together with the company's management, we analyze the company's activity in all its components, and build a projected operating budget for the coming year. One of the important parameters is the seasonality of the company's operations and the financing requirements derived from it.
Assembling the “puzzle” In the third stage, we will match the financing options available to the company and the financing needs that this financing will solve. Financing options include of course existing funding but also any change or addition to it, including:
  • Change in terms of trade with some of the suppliers
  • The addition of non-bank credit
  • Addition or change to the structure of bank credit
  • Specific financing for assets
Delivery The final step includes conducting negotiations with the existing financers and finding new sources of funding. At the end, we will utilize the financing options to enable the performance of the operating budget we have built together with the company's management.