What to do when your bank reduces or withdraws your working capital facility, and how to replace it with private credit faster than you think.
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
Your bank has just called. Your revolving credit facility is being reduced. Your overdraft is not being renewed. Your trade finance lines have been tightened. Or — worst case — your entire facility is being withdrawn with 90 days' notice.
This is happening to operating companies across Asia Pacific right now. Not because their businesses are failing. Because the regulatory and profitability pressures bearing down on bank balance sheets have made mid-market corporate credit economically unattractive to the banks that once provided it willingly.
When a bank cuts a working capital facility, the business that moves fastest has the most options. Private credit can replace a bank line in weeks, not months.
Immediate Steps When Your Facility Is Cut
Move quickly: The earlier you start, the more options you have. 90 days' notice gives you far more leverage than 30 days.
Quantify the gap precisely: Calculate exactly how much working capital you need. Know your peak and trough requirements across the calendar year.
Map your security: Identify assets and cash flows available to support a replacement facility. Trade receivables, inventory, real property, contracts, personal guarantees.
Document your business: Prepare current financials, management accounts, cash flow forecasts, customer list, and key contracts.
Contact a specialist immediately: Not another bank. A private credit specialist can give you a preliminary view within days.
Private Credit Working Capital Solutions
Asset-backed revolving facility: A revolving credit line secured against trade receivables and inventory. The most direct replacement for a bank trade finance or invoice discounting facility.
Term working capital loan: A fixed-term facility providing a lump sum of working capital for a defined period, repaid from operating cash flows.
Receivables purchase: An outright purchase of trade receivables at a discount, providing immediate cash against invoiced but uncollected revenues.
Supply chain finance: Funding payments to key suppliers, allowing you to extend effective payment terms and improve working capital dynamics.
Working capital bridge: Short-term capital to cover a specific gap while a longer-term facility is being arranged.
Collateral by Industry
Manufacturing and industrial: Trade receivables, raw material and finished goods inventory, confirmed purchase orders, and export contracts.
Distribution and logistics: Inventory in transit, warehouse receipts, confirmed delivery contracts, and fleet assets.
Healthcare and professional services: Patient receivables, insurance receivables, and long-term service contracts.
Hospitality and retail: Forward booking revenues, membership fees, food and beverage receivables, and real property.
Technology and services: Contracted subscription revenues, SaaS receivables, and long-term service agreements.
If your bank has reduced or withdrawn your working capital facility, contact GMG Capital Advisory today. We will assess your situation quickly and tell you exactly what replacement options are available and on what timeline.
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
