Banks & Financial Institutions
LK Advisory provides banks and institutions with practical, technically sound advice to support the lending proposition and management of risk.
We offer advice underpinned by years of industry experience and expertise in appraising often complex trading businesses at either main contractor or subcontractor level providing clarity on the key contractual risk areas facilitating informed lending.
We are usually engaged to provide a detailed review of the current trading position of a subject business and to quantify contractual exposure risk. Subject businesses tend to be up to £250M turnover where core lending facilities are in place or proposed.
Our advisory work typically comprises:
- Providing clarity on the nature of trade and collateral to support the bank facility.
- Accurate assessment on the basket of collateral to support the bank facility on a contract by contract basis.
- Assessment of future funding needs and interrogation of cash flow forecasts and sensitivities.
- Validation of trading forecasts and tender listings.
- Balance sheet asset validation including work in progress and compliance with standard accounting practice.
- Gross margin analysis by contract. Review of management and commercial systems with recommended improvements.
- Review of the existing security maintained.
- Investigating and advising on exit strategies.
- Training and advising bank client relationship facing teams in sales or account management disciplines.
We also undertake collateral audit monitoring and strategy assessment to maximise contract debt assets and compare outcomes under wind down or cease trade exit scenarios.