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Presentation to NAFL: Bankers’ perceptions of the Logistics industry. Presentation By. The Background: What it is going on in Dubai Banking?. Liquidity Good Risk Appetite Does Not Match High Liquidity Restructuring Everywhere High Inefficiencies – slow processes
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Presentation toNAFL:Bankers’ perceptions of the Logistics industry Presentation By
The Background: What it is going on in Dubai Banking? • Liquidity Good • Risk Appetite Does Not Match High Liquidity • Restructuring Everywhere • High Inefficiencies – slow processes • Inexperienced Relationship Managers • Few Banks Control 80% of Business
How banks perceive ALL SMEs….. SMEs are perceived as high risk… • High Concentration Risks • Key Man Risk • Limited Fall-back Options • Poor Financial Management & Transparency • Unable to Articulate Financing Needs • Skip Risk
How is the Freight & Logistics industry different? Banks’ perception of your industry: • Low entry barriers, high competition • Low margins, high volume • High customer concentrations – receivable and business risks • Compliance risk: business with sanctioned countries, products, etc. • Low asset base
Showcase Your Strengths • Identify Your Strengths. Consider Whether You Have: • High quality clients? • Some Identifiable USP • Established Track Record With Suppliers & Clients • Good History of Managing Receivables, bad debt history • Number of Repeat Clients • Testimonials From Suppliers/Clients • Process Qualifications From International, Reputed Bodies • Financials Audited By Reputed Auditors
So what can you do? • Good Auditor • Focus on post-sale financing • Build A Good Case: Testimonials From Buyer And Suppliers • Look At Credit Insurance • Go To The Right Banks • Take Proper Professional Advice
What can NAFL do? NAFL is voice of the F&L industry and can facilitate education on financing. • Tie up for financing advice: Vianta can do Finance Clinics • Start a Finance Mentoring programme • Invite senior bankers to events to create awareness • Examine role in assisting banks in case of issues with members • Explore credit insurance: economies of scale • Tie up bulk rates with empanelled auditors
Better Bank Financing. Quickly Delivered.
You can contact us on Vianta Advisors JLT#2604, Mazaya Business Avenue AA1,Jumeirah Lakes Towers, Dubai, United Arab Emirates Vikram Venkataraman E:vikram@viantaadvisors.com GSM:+971506451048; +971551961234 Shekhar Iyer E:shekhar@viantaadvisors.com GSM:+971559804535