Emerging difficulties in corporate financing
Title: Detecting and Preventing Emerging Difficulties: the PrestaFlex Approach
At PrestaFlex, we know that good credit risk management goes beyond the initial granting of financing. Careful monitoring of files throughout their life cycle is essential to detect emerging difficulties at an early stage and act accordingly. Based on the information provided on the attached page, we have identified the following key points, which underpin our approach to continuous monitoring and credit reassessment:
1. Continuous Monitoring and Identification of Warning Signals
- Regular monitoring of the financial situation
Indicators such as available cash flow, on-time performance and sales growth help us to identify any potential discrepancies. Early payment delays, for example, are often early warning signs of cash flow tension. - Periodic re-evaluation
It's crucial to re-evaluate the quality of the file over time: market evolution, changes in corporate governance, capital structure, etc. This reassessment must take into account the actual repayment capacity and soundness of the project. - Compliance monitoring
Checking that the borrower complies with contractual clauses and obligations (insurance, guarantees, required documentation) is essential to prevent any drift.
2. Proactive communication and collaboration
- Ongoing dialogue
At the very first suspicion of a problem (downturn in business, late payment of invoices, etc.), we establish early contact with the borrower. The aim is to understand the cause of tensions and assess the possibility of a joint action plan. - Coordination with partners
In the event of difficulties, collaboration with other stakeholders (guarantors, insurers, investors) can help define appropriate solutions (restructuring, extending the loan term, etc.). - Use of a dedicated CRM
A well-configured customer relationship management (CRM) tool makes it easier to track exchanges and report information. It can be used to centralize alerts and ensure greater responsiveness.
3. Action Plan for Emerging Difficulties
- In-depth analysis
When warning signs are confirmed (repeated delays, budget deviations, credit extension requests), PrestaFlex performs a more in-depth analysis of the case: financial diagnosis, collateral evaluation, refinancing scenarios. - Corrective measures
Depending on the degree of difficulty, several measures may be considered- Rearrangement of repayments: lengthening the term, deferring partial repayments.
- Refinancing: provision of additional liquidity, if the potential for recovery is real.
- Reinforcement of guarantees: adjustment of guarantee level or additional surety.
- Reinforced monitoring
Once corrective measures have been put in place, monitoring becomes closer, with a schedule of periodic checks and meetings. The aim is to check that the agreed solutions are bearing fruit, and to correct them if necessary.
4. Advantages of the PrestaFlex approach
- Responsiveness
Thanks to a monitoring and alert system, PrestaFlex anticipates problems rather than reacting to them. - Personalized support
Each company has its own specificities; the customized approach favors a better understanding of the issues at stake and constructive collaboration. - Limiting losses
By acting early, it is possible to save the credit relationship and avoid irreversible deterioration of the file, thus protecting the interests of all parties (borrowers, investors, partners).
Key points for a successful business financing application
The importance of rigorous monitoring and early detection of difficulties in the follow-up of corporate loans is fundamental. At PrestaFlex, we draw on these principles to offer quality support: continuous monitoring, high-performance tools (CRM, financial dashboards) and a human approach to finding lasting solutions with the borrower. By focusing on anticipation, communication and flexibility, PrestaFlex ensures that each project can be supported in the most appropriate way, even in turbulent times.
