SELECTING A CORPORATE FINANCE LENDER
Michael Tait, independent chairman and non executive director, discusses the selection of a corporate finance lender. The process of selecting a corporate finance lender typically involves several steps, and the role of the chairman will depend on the specific circumstances and the governance structure of the company. Here are some general considerations that may form the selection process:
Define the financing requirements: The first step is to identify the financing requirements of the company, such as the amount of funding needed, the purpose of the funding, the timeline for the funding, and the terms and conditions of the financing. This will involve consulting with the CFO and other senior executives.
Evaluate potential lenders: Once the financing requirements are defined, the company can evaluate potential lenders based on various factors such as their reputation, track record, expertise, terms and conditions, and fees. The chairman may be involved in overseeing the evaluation process, which may involve input from the CFO, legal counsel, and other stakeholders.
Negotiate terms and conditions: Once a lender has been selected, the company will negotiate the terms and conditions of the financing, such as interest rates, repayment terms, collateral requirements, and covenants. The chairman may be involved in overseeing the negotiation process and ensuring that the terms are favourable for the company.
Finalise the agreement: Once the terms and conditions are agreed upon, the company will finalise the agreement with the lender and complete any necessary documentation. The chairman may be involved in signing off on the agreement and ensuring that the financing is in line with the company’s strategic goals and risk appetite.
Overall, the process of selecting a corporate finance lender requires careful consideration and due diligence to ensure that the company secures the most suitable financing solution. The chairman’s role may vary depending on the company’s governance structure and the specific circumstances of the financing.
Here are some corporate finance lenders:
Barclays – Barclays is a multinational investment bank that provides a range of corporate finance services, including debt and equity financing, M&A advisory, and structured finance.
HSBC – HSBC is a global banking and financial services company that offers corporate finance solutions, including debt and equity financing, M&A advisory, and project finance.
Lloyds Bank – Lloyds Bank is a retail and commercial bank that provides corporate finance services, including debt and equity financing, M&A advisory, and capital markets solutions.
NatWest – NatWest is a retail and commercial bank that provides corporate finance solutions, including debt and equity financing, M&A advisory, and capital markets solutions.
Royal Bank of Scotland (RBS) – RBS is a retail and commercial bank that provides corporate finance services, including debt and equity financing, M&A advisory, and structured finance. Michael Tait has worked many times with RBS as the corporate finance lender and has found RBS to be a very good partner.
Santander – Santander is a global banking and financial services company that offers corporate finance solutions, including debt and equity financing, M&A advisory, and project finance.
Standard Chartered – Standard Chartered is a multinational banking and financial services company that provides corporate finance solutions, including debt and equity financing, M&A advisory, and project finance.
Please note that this is not an exhaustive list, and there may be other banks in the UK that provide corporate finance services.
Web addresses are below:
Barclays – https://www.barclayscorporate.com/
HSBC – https://www.business.hsbc.uk/en-gb/corporate
Lloyds Bank – https://www.lloydsbank.com/business/home.html
NatWest – https://www.natwest.com/corporates/financing/corporate-lending.html
Royal Bank of Scotland (RBS) – https://www.rbs.co.uk/
Santander – https://www.santandercb.co.uk/solutions/finance/business-loans
Standard Chartered – https://www.sc.com/en/banking/banking-for-companies/