For any organisation, the overall success of any project is largely dependent on the availability of resources, especially funding. While most companies are able to put in the time, productivity, and human resources to deliver top-notch products and services, these efforts can be sabotaged by insufficient capital. It is important for medium-to-large enterprises to be abreast of available and accessible funding options, in order to competitively price both planned and unforeseen debt raise.
The use of Commercial Papers (CP’s) as a viable source of funding working capital projects, is on the increase, especially amongst corporate organisations. FBNQuest has also played a critical role in onboarding real sector issuers. Before the re-emergence of the CP market, organisations naturally leaned towards traditional bank debt (overdrafts and short term loans) to finance working capital and capital expenditures, largely due to the obscurity around accessing the alternative money and capital markets instruments. However, an interesting point to note is that if your organisation can access a bank loan, then it can access Commercial Papers. Commercial Papers make a much better alternative as they offer a lower interest rate.
Institutions like FBNQuest hand-hold clients and simplify the process of CP issuance.
According to the merchant bank, below are quick tips to accessing a Commercial Paper:
- Consult expert financial advisors to guide you through the process
- Ensure best practices in corporate governance are in place
- Provide your organisation’s audited financial statements
The process of CP issuance can be straightforward and seamless when guided by an experienced adviser. For investors, FBNQuest also supports the process of application, allotment, settlement and redemption at maturity.
Visit www.fbnquest.com/merchantbank for more information about commercial papers.