3 questions to smart minds

The current business model of banks is dead

For this 3 questions to Gabriele Romeike-Catcher

Finan­cial Projects
Photo: Gabriele Romeike-Catcher
25. July 2018

Today, the topic of corpo­rate finance has many facets. Conse­quently, digi­tiza­tion proces­ses lead to auto­ma­tic credit decis­i­ons and to an elimi­na­tion of previously fami­liar bank offe­rings. Corpo­rate finance is chan­ging fore­ver for this reason alone. The current indus­tria­liza­tion in the finan­cing market — prompted by the legis­la­tor — deli­vers contrac­tual and liqui­dity advan­ta­ges for corpo­rate and export finan­cing. — How can the finan­cing struc­tures of large and medium-sized compa­nies be adapted to the new opportunities?

For this 3 ques­ti­ons to Gabriele Romeike-Fänger, Mana­ging Direc­tor of Finan­cial Projects in Mülheim an der Ruhr, Germany

1. How must a company’s finan­cing struc­ture change if bank finan­cing is not available?

The finan­cing market has long since turned in favor of compa­nies and thus away from banks. Today, the company is no longer a deman­der of credit, but a provi­der of assets. A provi­der can consis­t­ently “tender” its requests to finan­cing insti­tu­ti­ons, i.e., set terms and other condi­ti­ons, and submit the request to the finan­cing market for a decis­ion. Prefe­rence is given to those insti­tu­ti­ons which, accor­ding to BaFin regu­la­ti­ons, are allo­wed to disburse the highest liqui­dity to the indi­vi­dual colla­te­ral such as receiv­a­bles and equip­ment (assets). These are the finan­cial services insti­tu­ti­ons with excel­lent IT stan­dards and, for real estate finan­cing,in addi­tion to banks, above all the insu­rance compa­nies and pension funds.

2. What approach would you then recom­mend to a company?

First of all, the previously exis­ting bank agree­ments must be checked for permea­bi­lity with regard to the release of colla­te­ral and poten­tial for expan­sion, espe­ci­ally if the company has not yet arri­ved in the digi­tal finan­cing world with the help of finan­cial services institutions.

Once the prepa­ra­ti­ons have been comple­ted, any new finan­cing, e.g. for equip­ment, real estate or for working capi­tal, is tende­red to the insti­tu­ti­ons with marke­ta­ble condi­ti­ons. For this purpose, the loan appli­ca­ti­ons are prefa­bri­ca­ted and sent in iden­ti­cal form — depen­ding on the asset class — to the finan­cial services insti­tu­ti­ons, banks or insu­rance companies.

3. What are your recom­men­da­ti­ons for opti­mi­zing your own approach?

Until there is suffi­ci­ent expe­ri­ence in “writing out” loan requests that are reali­stic and struc­tu­red to fit exis­ting contracts, CFOs / CFOs should seek assis­tance. Also, compa­nies often still lack an over­view of which insti­tu­tion impo­ses which requi­re­ments on the mate­rial to be submit­ted and impo­ses stra­te­gic or regu­la­tory rest­ric­tions on the allo­ca­tion of funds.

Over­all, it must be stated that — simi­lar to the insu­rance indus­try — a profes­sio­nal broker/consultant can nego­tiate condi­tio­nal and contrac­tual advan­ta­ges and is often faster, espe­ci­ally since he knows the nego­tia­tion margins. It is also usually possi­ble to dispense with discus­sions, which do not always have full trans­pa­rency, within the regio­nal sales struc­tures of the finan­cing institutions.

About Finan­cial Projects

Finan­cial Projects has been in the market for 12 years and provi­des high end corpo­rate finance advi­sory services. The turno­ver of the clients ranges between EUR 50 million and EUR 1,500 million. In addi­tion to the support of perma­nent clients, tenders are invi­ted and placed on an indi­vi­dual basis in the areas of equip­ment finance and working capi­tal. — Such requests reach Finan­cial Projects through the website and through the sales struc­tures of vendor finance clients. For more infor­ma­tion, visit

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