When a business faces a sudden liquidity crisis, a debt maturity, or a period of underperformance, private credit can provide the capital and the time needed to stabilise, recover, and rebuild.
Published by
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
30 years of institutional finance. Former hedge fund founder. Senior roles at top global investment banks. GMG Capital Advisory arranges private credit and special situations finance of $10M–$100M for operating companies across Asia Pacific.
[email protected] | +65 9773 0273 | Singapore · Hong Kong | Asia-Pacific
Not every financing need comes from a position of strength. Some of the most important corporate finance transactions are those arranged when a business is under pressure, facing a sudden cash crisis, a debt maturity it cannot refinance in time, or the aftermath of a restructuring.
Rescue finance is not about writing off a bad situation. It is about recognising a recoverable one, and moving fast enough to matter.
What Triggers a Rescue Finance Requirement
Bank facility withdrawal: A bank withdraws a credit facility with short notice. The business may be fundamentally sound, the problem is the bank's portfolio decision.
Debt maturity crisis: An existing debt facility is maturing and the business has been unable to arrange refinancing in time. Days from a technical default, the business needs bridge capital.
Covenant breach: A bank covenant has been breached. The bank has demanded repayment or a renegotiation the business cannot immediately satisfy.
Sudden liquidity shock: A large debtor defaults. A major contract is cancelled. An unexpected cost event depletes cash reserves.
Post-restructuring stabilisation: A business has completed a formal restructuring but cannot access bank credit because of the history.
Operational disruption recovery: COVID, supply chain disruption, or a significant operational setback has depressed trading performance. Private credit lenders
can look through historical underperformance to the current and forward trading position.
How Rescue Finance Is Different
Speed is paramount: Rescue situations rarely have the luxury of a four-week due diligence process. Experienced lenders can make preliminary credit decisions within 24–48 hours.
Incomplete information is normal: Experienced lenders work with management accounts, projections, and site visits rather than requiring complete audited financials before forming a view.
Forward-looking underwriting: The most important question is not what happened in the last three years but what the business looks like in the next 12–18 months.
Pricing reflects risk: Rescue finance is priced to reflect the elevated risk and complexity. The relevant comparison is the cost of the facility versus the cost of not having it.
The most important advice for a business facing a rescue finance situation: move quickly and be transparent. GMG Capital Advisory can give you an honest assessment of what is possible within 24 hours of receiving your information.
About GMG Capital Advisory
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
Donald Klip has 30 years of institutional finance experience spanning hedge fund management and senior roles at the world’s top global investment banks. GMG Capital Advisory specialises in arranging and structuring corporate debt financing of $10M–$100M for operating companies, asset owners, and project sponsors where conventional bank lending is unavailable, insufficient, or too slow. We operate across 23+ jurisdictions in Asia Pacific.
www.gmg.asia | [email protected] | +65 9773 0273 | Singapore · Hong Kong
The Debt Desk
Corporate private credit intelligence for Asia Pacific’s $10M–$100M middle market. Published by GMG Capital Advisory. Part of the Private Credit Asia content series.
www.gmg.asia | Read all 41 articles in the series
