Liquid capital markets, resilient earnings mean opportunities for operators

The volatile global financial landscape, resilient earnings profile of the pub market and the low interest rate environment has resulted in a liquid lending environment for the sector.

However, rising inflation is pushing market rates higher, it can be a difficult and complex time for businesses looking at capital debt solutions.

Every business has a different risk profile that drives bank margins which is why debt management is becoming more important than ever. Hospitality is no different. Unless a business is presented in the right way to the right provider, it is unlikely to result in an optimal outcome.

Not only can we help you understand the true cost of your capital, we can help you turn debt capital into an opportunity. Here’s how:

We know the industry and we take the time to properly understand your business, do the work to present in a format that makes it easy for the banks to assess

Negotiating Favourable Margin Reduction 

We create competition for your banking. Utilising 20 years of corporate banking experience, we are able to drive negotiation process directly with decision-makers at the banks.

Conditions That Set You Up for Success

We can help you ensure the ongoing loan structure suits your risk profile, so you’re not set up for failure by having onerous covenants in place set by the bank. We will help you look at all the conditions of your loan approval including loan-to-value (LVR), interest cover ratio (ICR), suitable financial reporting timeframes, a re-valuation lifecycle that suits you and ensuring the lender isn’t being overly restrictive on dividends or distributions. 

Appropriate Security to Match the Risk 

We ensure lenders do not restrict you through locking up too much of your Balance Sheet. We have successfully negotiated the release of property securities and directors guarantees where the risk profile supports it.  

Equity Release for Greater Opportunities

Much like security release, equity release allows you to extract equity out of your Balance Sheet to utilise for your own purposes.

Capital Debt Client Experience: 

Here’s how Bill Young of Young Hotel Group benefitted from Quantaco’s extensive capital knowledge and advisory.