Pre-Lend Due Diligence
Insight and advice to support informed lending decisions.
Financiers need insight and advice to support informed lending decisions, whether advancing new credit, refinancing, or funding expansion or acquisition. McGrathNicol’s pre-lend due diligence service combines extensive financial due diligence and analytic skills with a commercial understanding of taking on and managing credit risk.
Partnering with us gives you specialist restructuring experience, allowing us to provide you with advice across the capital structure on:
Evaluating the underlying financial position, performance and liquidity of target borrowers.
Identifying areas of risk.
Developing solutions to manage and mitigate credit risk including assessment of debt sustainability, security, covenant protection and intercreditor arrangements.
We were engaged by a prospective financier to undertake a pre-lending due diligence review of an international business supplying equipment on hire to the construction industry. We reviewed the recent and forecast financial performance in all of its key markets to consider the likely range of earnings and conversion of earnings to cashflow. We could then advise our client on the level of sustainable debt the group could support.