Are you CFO or Treasurer of a German subsidiary of an international corporation?
And the banks say your company is not "bankable"?
👉 Use leasing! With LeasingPilot!
On several occasions, (future) clients described the following, each similarly structured situation to me:
👉 The German subsidiary of a foreign corporation cannot obtain financing in Germany due to a lack of its own creditworthiness.
It is not "bankable"!
The situations differed in terms of their underlying causes:
🔹 (intra-group driven) lack of profitability,
🔹 newly established entity or low equity ratio,
🔹 strong growth in Germany,
🔹 low external rating of the group, overruling the subsidiary's stronger bank rating,
🔹 higher leverage of the group, e.g. in LBOs!
The parent company would be happy to provide a guarantee for the financing!
However, no one is able to read or incorporate the (e.g. Asian) consolidated financial statements into a rating.
German banks state that they would be willing to provide financing against a guarantee from a foreign (first-class) bank!
Otherwise, unfortunately, they cannot...
In most cases, the German management then runs out of arguments for becoming less dependent on the shareholder loans financing the German subsidiary!
👉 Do you recognize this situation?
Leasing (or hire purchase) is the solution here!
Where banks turn away, leasing companies can — on an asset-based basis and without a parent guarantee —
finance new investments and convert already acquired assets into liquidity via sale & leaseback!
At LeasingPilot, we understand your situation and secure the optimal financing on your behalf!
We have already successfully implemented this multiple times for German subsidiaries of European LBOs!
Let's talk!
#LeasingPilot #LBO #Treasury #CFO #PrivateEquity
Are you CFO or Treasurer of a German subsidiary of an international corporation?
