Financial Consultancy
Case of Study

 

Index

Antecedents

Objectives

Stages

Processes

Development

Return to Services

 

Antecedents

  • The company CAMARON SA. is one of the main exporters of shrimps in Ecuador.
  • Its main shareholder is a well known and experienced manager in shrimp business in Ecuador. He was one of the main shrimp intermediaries in the country.
  • Camaron S.A has been reinvesting its utilities all these years so to assure a real capacity that would allow it to reach worldwide markets.
  • One of its main destinations is the USA, which sued Ecuador for dumping, imposing a common fee of 3.6%. to Ecuadorian shrimp imports.
  • The company now requires financing sources in order to be able to financing its working capital and to fulfill the demands of the market.

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Objectives

The objetives of consultancy are as follows:

1) To recommend the best financing option, considering the financial situation of the company that is asking for our advice and giving it a real offer of financing that would allow it to:

  • maximize the use of its installed capacity,
  • reduce its fixed costs,
    • financing sales to USA considering the sale modality DDP,
    • reach buyers for value- added products.

2) To assist executives of the company in the various stages that the creditor would establish, as a process of implementation of the line that is being recommended.

 

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Stages

THE METHODOLOGY WILL MAINTAIN THE FOLLOWING GENERAL STRUCTURE SO TO BE SURE TO RECOMMEND THE BEST OPTION OF FINANCING :

 

PHASE I    Analysis of the conditions of the company

PHASE II   Preparation of the financing recommendation

PHASE III  Recommendation of the best financing option

 

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Processes

IN AGREEMENT WITH THE PREVIOUS STRUCTURE, WE PROPOSE THE FOLLOWING OUTLINE OF WORK

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Development

Its has been considered a chronogram of work of two weeks until the final document is done. It is undestood that this term starts as soon as all the required information has been provided.

It is considered that the process of implementation of the line will take thirty additional days.

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1. Financial evaluation of the company and its relationship with its debtors 2. Understanding the  commercial strategy used, potential and market relationships 3. Prospection with potential debtors considering  the company’s requirements 4. Sustained Financial Proyection, reflecting   the use of the financing line. 5. Analysis of the advantages and disadvantages of  chosen alternatives 6. Recommendation of the best financial option. PHASE 1 -ANALYSIS OF THE CONDITIONS OF THE COMPANY PHASE 2 - PREPARATION OF THE  FINANCIAL  RECOMMENDATION PHASE 3 - RECOMMENDATION OF THE BEST FINANCIAL OPTION