If your finances have not been independently reviewed or tested against the market for some time, likely, your financial arrangements are well behind the market. This could be reflected in various aspects of your facilities including paying a “loyalty tax”, having onerous covenants and conditions, or the most common trap – having all securities ‘cross-linked.’ Whilst this provides the lender with a lot more comfort, it presents borrowers with asset protection risks and can also be very prohibitive for future borrowings.

Through the introduction of competitive tension via a Market Tender, it ensures that your financial arrangements are at the market which will often lead to a significant improvement to your facilities through cost savings, security simplification, or covenant and condition removal. This doesn’t mean you have to necessarily change lenders, often it may be best to remain with the incumbent lender, but it does ensure you are receiving the best terms available in the market.