Shortly before the financial market crisis of 2007\/2008, an entrepreneur paid around 6% interest on average financing. This interest rate consisted of approximately 4% refinancing interest from<\/b> the bank plus 2% risk share. <\/p>\n
Now, with refinancing interest<\/b>rates now at 0%, one may mathematically assume that financing should only cost 2-3%. This is precisely not the case, and we have called this phenomenon at ICS the constancy of financing costs. <\/p>\n
As banks’ refinancing rates<\/b>fell, so did their need to price in risks. Thus, a company may be back at 6% financing costs with a moderate rating<\/b> and a difficult market environment. This also makes it clear how a company can benefit from the low interest rate phase. The rating<\/b> determines the risk interest rate of the banks and therefore all strength must be put into the rating<\/b> ! However, it is not enough to have a conversation with the banks, albeit regularly. <\/p>\n
Rather, the tasks result from the processes. How is demographic change being countered, how does the change affect skilled workers and second management levels? What risk management<\/b>system does the company operate? Are internal risks (fraudulent actions) recognized quickly enough by management in an emergency? Does the company react quickly enough to external disturbances (controlling instruments of the 1990s in the corporate world 2.0?). And finally: What liquidity system does the company operate and how does it structure its capital side? <\/p>\n
Questions upon questions that are crucial for rating<\/b>success! Unfortunately, we observe that hardly any companies take on these tasks, as financing at 4% or 5% is considered sufficient. But why not try to really take advantage of the low interest rate phase and get a ZWEI before the decimal point? <\/p>\n
With a good rating, this is not a utopia! <\/strong><\/p>\n What are your experiences? We look forward to your comment <\/strong><\/p>\n Image source: Fotolia.com, Photographer: J\u00fcrgen F\u00e4lchle<\/small><\/p>\n","protected":false},"excerpt":{"rendered":" Shortly before the financial market crisis of 2007\/2008, an entrepreneur paid around 6% interest on average financing. This interest rate consisted of approximately 4% refinancing interest from the bank plus 2% risk share. Now, with refinancing interestrates now at 0%, one may mathematically assume that financing should only cost 2-3%. This is precisely not the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[197],"tags":[267,325,326,291],"class_list":["post-11376","post","type-post","status-publish","format-standard","hentry","category-finance-accounting","tag-finance","tag-rating","tag-refinancing-interest-rate","tag-risk-management"],"acf":[],"yoast_head":"\n