Pre-lending review

When embarking on a new loan, or changed loan conditions, a pre-lend review can provide both the company and the financier with the right financial information to structure the appropriate facilities and to minimise risk.

Overview

There are a number of reasons why a lender may request a pre-lending review. The structure of the loan may require specialist skills or analysis, or the business may have operational facets that require in-depth analysis to align the most appropriate form of lending and security structuring.

A new lending relationship represents a partnership between the lender and the borrower. This will have a greater chance of success if both parties’ interests are aligned. A pre-lending review is often the necessary platform in this process.

Throughout the review process, we work with the borrower to identify business improvements or opportunities and key messages the borrower wishes to communicate to the lender. The process is not exclusively for the benefit of the lender. Usually borrowers find having their business mapped, documented and modelled is a useful experience, particularly when identifying and managing business risk. A pre-lending review enables a new or evolving lending relationship to be built on solid foundations.

Why choose Ferrier Hodgson

Ferrier Hodgson’s partners have extensive experience in assessing business risk, developing and implementing improvement strategies.

This experience, combined with our team’s understanding of the financial and operational issues lenders and businesses face, means that Ferrier Hodgson is uniquely placed to provide a balanced assessment of the key risks regarding any lending decision.

Ferrier Hodgson has strategic partnerships with sector-specific experts who are able to provide detailed operational analysis and to assist with assessing the performance and strategy of businesses before and after lending decisions have been made.