What financial instrument is most suitable?

Each financial instrument is designed for a specific purpose that has a defined target group and, as a result, operates under specific criteria. Whether the borrower or investor is sensitive to interest rates, advance rates, amortization periods or the term of a loan, the primary criterion that determines the cost of capital is the source’s perception of risk.

Why can one bank offer lower interest rates to certain clients? Different institutions have different perceptions of risk in each industry and in each deal. Although ratio calculations, cash flow, debt service and profitability are the primary influences on the cost of capital, other elements also play a significant part.

As part of all of our mandates, we assist our clients to promote the strengths of their companies and manage or bolster any areas of concern. Our ability to leverage our relationships, correctly analyze and package each deal and effectively match clients with lending ensures that our clients receive the most favourable lending terms.

Analyzing our client’s balance sheet helps determine which borrowing instrument is most appropriate. However, not all lenders will be equally receptive to a file. The market is comprised of a variety of lenders and credit instruments, and understanding which lender is active in a specific market and why is critical when positioning a file to target the right lender. Our primary objective is to ensure that today’s financing solution can act as the basis for a client’s future needs.