Another risk mitigation strategy I am seeing is the underwriting
of global cash flow providers / sponsors.
Now lenders are really looking
at global cash flow for all locations an operator or sponsor may operate or own.
However, Ocean Capital also evaluates additional criteria in their decision process
including global cash flow, business owner's character, credit, management experience, collateral and owner's injection.
If you're starting a new business, the bank assesses
your global cash flow — your current personal income as well as your projected income from the business.
Its Exposure Management module enables clients to track
their global cash flow and balance - sheet exposures to determine if the hedges they have put on globally across subsidiaries are in line with their corporate hedging strategy.
If you already own a portfolio of properties, they will want to look at
your global cash flow, which is how much cash you earn after debt service.
Lenders are underwriting «a borrower's
global cash flow» since a weak asset could be draining funds from a good one, he explains.