Posted by : The Caspian Debt Team What does customisation mean in debt financing?
Customisation is possible in debt products the customisable features in debt financing are amount, price, repayment pattern, and security. There are a variety of combinations of these features that are possible. However, we must understand that customisation of debt has to be done while keeping the risk profile of the same.
The conditions for each company are unique – their own financial position i.e., cash availability, leverage, consistency of payment by customers, timelines for project and sale cycle execution, dependability of their suppliers, availability of mortgage collateral, and relationship with financial institutions. This means that a borrowing company either has to find a ready product that suits its situation or has to work with a lender who is ready to customise the product.