Successful lending and borrowing models are built upon sound due diligence and proactive lender-borrower relationships. Our services are designed to increase the viability of lending products and setting realistic expectations between lenders and borrowers. These services can be scaled to match the level of borrowing and the sophistication of the borrower. They include:
Conducting an Integrity Due Diligence investigation is a key part of the risk mitigation process and can help avoid costly mistakes, regulatory sanction and damage to reputation. Areas that we typically explore with regard to Integrity Due Diligence investigations into individuals include: corporate affiliations; the extent of any political or government connections; the existence of any conflicts of interest such as related-party transactions; litigation, regulatory and bankruptcy history; criminal connections; and professional reputation.
Deloitte can assist the borrower in presenting a clear picture of the business, expected cash flows and financial results. Insightful financial models facilitate informed decisions, and support risk management.
Ongoing monitoring of financial position is an essential building block to achieve visibility within borrower operations and to maintain internal financial controls.
The active monitoring of cash flows, balance sheet solvency, working capital adequacy and compliance with other loan terms identifies early warning signs and allows for timely corrective action.
Through our Financial Statement & Internal Control Audit services, we audit and provide opinions on the financial statements and internal control over financial reporting of organizations in accordance with applicable professional standards.
A comprehensive review of the potential borrower’s business, in the following areas: a market overview, EBITDA normalisation, historical trading, management trading forecasts and assumptions, budgeting accuracy, financial statement ratio analysis (e.g. interest coverage ratio) and a review of cash flows and forecast cash flows.