What the engagement covers.
The firm prepares the documentation a borrower needs to approach a bank or a consortium of lenders. The work covers the full lifecycle of a credit facility — from initial assessment to disbursement and post-disbursement compliance.
Engagement components
- Project reports (greenfield & brownfield) with technical and commercial sections
- Financial projections, sensitivity analysis, and break-even modelling
- Working-capital assessment based on the Maximum Permissible Bank Finance (MPBF) method or the Cash Budget method, as the bank prefers
- Term-loan appraisal documentation including DSCR computation
- CMA data preparation
- Liaison with the bank's credit team during the appraisal process
- Post-disbursement compliance documentation, including stock statements and quarterly returns
Approach
The firm prepares documentation that meets the bank's appraisal requirements without overstating the borrower's case. Projections are built bottom-up from the borrower's actual operating data, with sensitivity tested at the credit team's typical stress points.
Where the engagement runs alongside the firm's audit work for the same borrower, independence considerations are reviewed at acceptance and a clear separation of teams is maintained.