Advisory services for credit management
Credit-checking consultancy service for banks
The Portas Capital team offers expert independent consultancy services with regard to commercial risks, the provision of second opinions, together with coaching and training for customer advisers. Our team of consultants has over 20 years' experience in issues of this kind. Our clients range from regional banks through to major banks operating throughout Switzerland.
Examples of our consultancy services include:
- the evaluation of outstanding loans as at balance sheet date and/or 31 December year-end, 30 June half-year-end and/or in the autumn or late in spring;
- the analysis of new lending, extensions or repayments of loans and guarantees (letters of credit, deposits);
- differentiation between adequate and deficient securities.
The Portas Capital team offers a combination of different skills and experience.Our business partners include a certified accountant, certified financial analyst, certified financial controller (previously director of finance) and others who, between them, have over 100 years of practical experience nationally and internationally.
We have assisted our clients in the following areas:
- which accounting standards are used (stock corporation law, Swiss GAAP FER, IFRS, foreign standards);
- which interim financial statements from the borrower are available, which budgets and forecasts are provided;
- evaluating intangible assets and other "dangerous" assets such as deferred tax assets (from losses carried forward), capitalised development costs, loans to company executives, etc.;
- indicators and/or impairments of fixed assets (property plant and equipment, financial assets, intangible assets);
- over-optimistic ("hockey stick") evaluations of free cash flow, plausibility of profitability drivers such as the development of revenues, margins, terminal value, discount rate, investments (capex), etc.;
- evaluation of debt capacity;
- banks' rating systems, information services and agencies, etc.;
- foreign exchange factors (especially euro) for exports and foreign subsidiaries;
- accounting in foreign currencies, account handling in foreign languages, etc.;
- loan agreements (covenants and waivers), behaviour of banks during economic downturns;
- evaluation of customers' off-balance-sheet liabilities (derivatives, guarantees, letters of comfort, etc.);
- evaluation of shareholders / ownership structure / relationships with associated persons and companies (consolidated balance sheet);
- danger of window dressing, etc.;
- role of borrowers' auditors / bank auditors;
- reputational risks, "know your client";.
- risk management in general, compliance issues, etc.;
- "work-out", restructuring, distressed situation management;
- risks associated with contract execution (contract, disclaimer, etc.).