Multi-asset

structured finance

As part of their growth plans, companies are often looking for new financing methods for their core business.

They are looking for alternative financing sources, off-balance sheet solutions or an improved cash position through cash injection. Structured finance can often offer a bespoke solution.

What is structured finance?

A flexible solution to help you finance 
specific assets and/or projects.

Structured finance is a complex financial solution offered to organizations with unique and sophisticated needs.

IT

PCs, servers, PoS, all other digital assets

Healthcare

Diagnostic imaging (scanner etc.), all other medical equipment

Green

All clean tech assets

Industrial equipment

Machine tools, assembly line, robotics, logistics, forklifts

Transport

Vessels, planes etc.

Retail

SCO, PSS etc.

Three types of companies
opting for structured finance 

Companies that are "capital intensive" for their core business and therefore face capital issues

Example: Energy companies (windmills, solar panels etc.), companies that focus on automation, telecom companies or logistics companies that go for continuous process optimization.

Companies active in innovation-oriented sectors

Taking the retail sector as an example, where innovation today is mainly focused on improving the "Customer Experience", or the optimization of their "Resources". These innovations require investments in digital signage, mobility solutions, smart lighting, digital platforms, etc. Given the operational challenges and the constant evolution of technology, we advocate the concept of ‘Usage’ rather than the ‘Ownership’ of assets.

Growth companies

Although today there is more liquidity available on the market, and banks today have more appetite for credit, a bank will have a credit limit on a company. One bank will never be able or willing to cover all investment requests (its "risk exposure" would be too high). Structured finance via Econocom offers a valuable alternative for the general management (diversification of the sources of financing, access to new banking partners without having to entrust them with "side business", flexibility).

Our expertise

Complex financial arrangements

Cross-border coordination

International and financial expertise (VAT, IFRS, US GAAP)

Multilingual support

Large network of international financing partners

Internal funding
(EDFL Ltd)

What's in it for you?

Financial benefits

With a structured finance solution through leasing, companies do not have to finance peak investments at the outset, but can spread their investment expenditure over time. Thus they can better align income and expenditure flows, and adjust rental amounts to seasonal income fluctuations. They also gain access to alternative sources of finance in addition to/over and above credit lines already in place. Structured finance helps to cover interest rate variations, spread credit risk, and diversify sources of funds.

Operational benefits

Operationally, companies can fully outsource their asset & invoice registration and follow-up. In addition, all costs related to hardware, software and services (insurance, installation and maintenance costs) can be bundled in one contract, which offers management advantages and improves cost transparency.

Success story

Econocom acquired the French shipping company Les Abeilles in September 2020

Econocom is working with the Bourbon Group (offshore marine services) to finance part of its vessels’ fleet, and more notably those of Les Abeilles, the French specialist in towing and rescue on the high seas.

 

Want to discuss growth financing through structured finance?

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