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Advisers do more than just talk the talk

A NEW Perth firm believes it can help medium-sized businesses save some money on their debt repayments.

Kaizen Corporate Advisory director David Breakey said his company had been able to save some clients up to $160,000 a year on their loan requirements.

Its clients include Aquatechics, accounting firm Pannell Kerr Forster and Slumberking mattress maker Thomas Peacock and Sons.

Kaizen focuses on companies with an annual turnover of between $10 million and $50 million and a debt facility between $1.5 million and $35 million.

Mr Breakey said his company analysed clients the way a bank would and used the information to renegotiate their credit terms.

The review generates a risk profile and determines the appropriate benchmark fees and margins that should apply to the loan facility.

“We help banks fully assess the business opportunity and we have an idea of where the mark is for a client,” Mr Breakey said.

“We try and keep the client with their original bank.”

He said the company’s approach of keeping the client with their original bank worked in their favour.

“There is a soft credit squeeze on at the moment and the banks are changing their lending parameters weekly, which makes it hard for companies to set up funding structures,” he said.

“By the same token, there is no new investment available out there so there is an opportunity for businesses to restructure their credit arrangements and get a better deal.”

Mr Breakey’s co-director, Justin Leeks, said they would tell the banks if they felt their client was being done a disservice.

“If the bank doesn’t budge we talk to the client and offer their business to the market on a quasi-tender situation. In many cases the change-over fees are minimal,” Mr Leeks said.

“We get some volume discounts from the banks because we do so much business with them.

Mr Breakey said that, because they were speaking the same language as the banks, they had a better chance of negotiating a better deal for their clients.

“Few companies have the knowledge and time to fully research the finance options available to them,” he said.

“Banks don’t volunteer information and I don’t think they’re volunteering to offer better rates.

“The onus is on the borrower.”

Mr Leeks said companies tend to focus on things they can control, such as staffing and ignored finance because they felt it was out of their hands.

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