Debt management for corporate (real estate, construction), public sector and financial institutions.

Debt and investment management
for corporate and local public sectors

Knowing the structure of your financing and hedging is not enough to manage them dynamically.

Knowing and managing outstanding debt

Outstanding debt is mainly comprised of different types of loans, taken out on different dates, with different maturities and different financial conditions. This diversity can complicate debt management, which should be based on a precise inventory of all financing transactions and their various clauses.

Lenders offer a full range of financing with each having benefits and hidden costs: standard loans, fixed or floating rates, capital or operating leasing, multi-index credit facilities, usually accompanied by usage or non-usage fees. This diversity is always growing in response to financial innovations, as is evident from the recent boom of disintermediated funding.

Irrespective of the type of financing, control of main clauses (e.g. maturity, interest rate) and secondary clauses (e.g. possible trade-off, early repayments, covenants) is essential to debt management, in order to optimise the cost and to minimise the risk.

Debt management: objective “risk/return”

Once the best financing option has been chosen, one of the objectives of debt management is to optimise financial costs. To do this, financial departments have several tools; they may use trade-off opportunities offered by floating-rate facilities with multiple options in order to optimise interest and fees. Depending on the case in-hand, they may also be required to restructure some loans: opt for an early repayment if cash is believed to be inadequately remunerated, or modify the amortisation conditions by shortening or extending the maturity date of the debt.

Another objective of debt management is to reduce exposure to interest rate risk. With fixed or floating rates, borrowers are exposed to fluctuating interest rates, resulting in gained or lost opportunities. The management of this risk requires appropriate distribution of different types of rate.

To efficiently manage debt, financial departments will therefore take a certain number of precautions: track the financial markets, register favourable periods, have a clear view of the proposed spread conditions, make an accurate analysis of every transaction…

Construction debt management requires better tools

Today’s large public and private construction projects require significant short and medium term financing often incorporating complex and detailed lending that needs a construction loan management system to properly manage. The field of construction loan management systems has relied on self-built spreadsheets and with complexity increasing and terms extending there is a move towards purpose built construction debt management software solutions. These solutions such as Fairways debt provide significant flexibility and absolute accuracy ensuring that this fundamentally important aspect of construction is well managed with purpose built construction debt management solutions.

Real Estate Debt demands up to date information

Real Estate finance and investment has many facets and until recently the availability of real estate loan management systems and software has been poorly served. With the advent of the Fairways real estate debt management system the industry has been given a solution that meets its needs and fulfils the functionality required for advanced real estate debt management solutions. Importantly Fairways is able to work across the full range of debt instruments and fund currencies to ensure that Treasurers and Fund Accountants have the most advanced debt management solution available today.

Social Housing Treasury Solutions, building for the future, today

European Social Housing organisations have grown considerably over the last decade many now have loan books of considerable size many in the millions some in the billions of Euros and Pounds. The social housing management teams including finance leads and treasury teams have seen the need to move away from simple spreadsheet to more competent social housing treasury software that provides the treasury solutions needed to manage these growing loan books. The social housing debt management systems available today have to manage debt of many types this includes fixed and floating rate loans, multi tranche facilities, inflation based product and along with this manage the associated derivatives as well. The social housing organisations that are publicly funded need to have available public treasury management software that has the capability and capacity to manage large scale debt across multiple lenders and multiple borrowers in its stride, Fairways Debt is a proven solution in this arena.

Fairways:Making Debt Management more efficient

Cumbersome and difficulty to use treasury management systems and independent spreadsheets are rapidly being replaced with more agile SaaS solutions focused on corporate debt management and the needs of the corporate treasury management teams. Loan management software has needed to become more advanced and provide more real time analytics and close to real time mark to market valuations with the incorporation of market data. The debt management teams across industry have identified the need for more accurate forecasting and Fairways from Finance Active which incorporates both market data and calculated forward curves meets this industry need. With many industries going through a corporate debt restructuring process having a solution like Fairways available enables them to strategize and simulate opportunities before committing to a new way of working with truly advanced debt management solutions such as Insito and Fairways Debt.

Debt management solutions tailored to your needs

Centralised view of financing transactions permanently connected to the financial markets, simulation, regulatory reports, key indicators… To manage debt, Finance Active provides smart monitoring, pricing and reporting solutions, with a personalised support.

Fairways Debt and Insito solutions optimise your debt management and facilitate your decision-making, resulting in improved financial performance.

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