Client Overview

  • The Client has an established trade and debtor finance and FX business with a bank warehouse, and was seeking to expand into equipment finance
  • The Client’s bank funder was not willing to fund the new asset class until it had a proven track record

Facility Overview

  • GCI provided a $20 million initial wholesale facility to allow for the establishment of the new product line
  • The facility was designed from inception to meet the individual needs of the Client and support the need for large concentration exposures

Commentary

  • GCI agreed to terms with the Client pre-COVID-19 and didn’t renegotiate terms despite the changed risk environment which emerged prior to closing the facility
  • GCI was able to commercially negotiate terms with the Client’s existing lenders to resolve complex security issues

Providing Value Added Credit

Insights

GCI has assisted the Client in developing metrics to monitor as it engages in a new asset class based on our experience in the sector.

Speed

The Client has presented GCI with two opportunities for large concentration exposures which represented compelling commercial opportunities which GCI has been able to approve within a 48 hour timeframe.

Network

GCI has introduced two portfolio clients to the Client to utilise their FX business’s products.

Flexibility

From inception, the wholesale facility GCI provided recognised the need for flexibility and in the three months since inception, GCI has provided waivers for exceptional circumstances on four occasions.