O financiamento a empresas: O caso do Santander
Transcript of O financiamento a empresas: O caso do Santander
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Luis Santos
Banks have ongoing deposit and customerrelationship
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1 Financing Strategies
1.1. Trade Off Theory
1.2. Growth Cycle Theory1.3. Similar Activities and Business
1.4. Pecking Order Theory
2 Are Bank Loans Different?
3 Advantages of Inside Debt
4 Banco Santander Tottas
specific products
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According to this theory we should choose betweenDebt vs Equity, balancing the benefits of Debt vs itscosts;
Debt Advantages:
Provides a tax benefit, because interestexpenses are tax deductible -Tax Shields;
Can force managers to be more disciplined intheir investment choices (if FCFF-Free CashFlows, are high and little or no debt, managementhas no incentive to be efficient in either projectchoice or project management);
Debt Costs:
Increases the risk that a firm will be unableto meet its fixed payments and go bankrupt;
Increase the potential for conflicts betweenlenders and equity investors;
Lose flexibility with regard to future
financing;
1- Financing Strategies:
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1.1.Trade Off Theory
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Examples:
The Debt ratios of firms with higher tax ratesshould be higher than the debt ratios of comparablefirms with lower tax rates;
Firms that have substantial no debt tax shields,such as depreciation, should be less likely to usedebt;
If tax rates increase over time, we would expectdebt ratios to go up over time;
Debt ratios in countries where debt has a muchlonger tax benefit tend to be higher than debt ratiosin countries where debt has a lower tax benefit;
One business that is losing money, and thereforedoesnt pay taxes wont have advantages in havingDebt;
1- Financing Strategies:
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1.1.Trade Off Theory
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Startups- tend to have little advantage in havingDebt, because they cant use the tax shields;
High-Growth firms- use less Debt, than maturefirms, when cash-flows become more stable theyuse more Debt;
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1- Financing Strategies:
1.2.Growth Cycle Theory
1.3.Looking to other firmsin their Business
Businesses in the some activity should have
similar characteristics, therefore it would not besurprising if they choose the some Debt Mix;
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1.4. Pecking Order Theory
Firms normally prefer:
1st) Retained Earnings;
2nd) Debt;
3rd) New Equity;
4th) Convertible Preferred
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2-Are Bank Loans Different?*In this paper the authors present the findings of recent
studies, and explore the possibility that Banks have some
unique advantages in their role as providers of capital1st) Market response to companies issuing common stock,
convertible offering, debt and preferred is Negative;
2nd) The response to Straight Debt is not significantly
different from zero;
Managers often have better information about the firms prospects, and
hence about its actual current value, than do outside investors;
Thus, while a new security offering might mean that the firm has
profitable new investment opportunities, it also might suggest that
management thinks that the firms earnings will be lower than previously
expected;
That is managements expectation of a shortfall in cash profits may bethe real reason for the new offering;
Investors Know, that if managements aim is to maximize the wealth of
their current stockholders, it will try to issue new securities when it belives
the firm is overvalued relative to its prospects;
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* Are Bank Loans Different?: Some Evidence From the Stock Market by Christopher James and Peggy
Wier, University of Oregon in Corporate Finance: Where Theory Meets Practice.
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Recognizing managements incentivesto issue overvalued securities, the
market systematically discounts thevalue of firms announcing newofferings.
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Internal Loans: for which the lender has access toinformation about the borrower that is not otherwise
publicly available. Example: Bank Loans, Privately Placed
Loans;
Outside Debt: Debt holder relies on publically availableinformation, Rating Agencies independent audits oranalyst reports. Examples: Publicly- Trades bonds and
commercial paper;
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3- Advantages of inside DebtMay provide a possible solution to the problem of information
asymmetry that attends all public securities offerings;
There may be an advantage to maintainingconfidentiality about firms investment opportunities
Inside debt holders are in a better position to monitor the firm after the
debt is issued. Renegotiating the credit in response to unexpected
developments is much easier;
The use of inside debt allows borrowers to avoid the costly and time-
consuming process of registering issues with the Securities andExchange Commission
The fixed costs of Public issues are relatively large, variable cost aresmall. For this reason, inside debt is more likely to be used forsmaller borrowings.
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Announcements of such inside debt transactions will have apositive effect on the stock prices of the borrowing firm.
The loan approval process itself may convey positive informationto market participants, about the financial strength of the firm.
Bank Loans vs Private PlacementsBanks have ongoing deposit and customer relationship.
The history of a borrower as a depositor may provide banks withsignificant cost advantages in evaluating and monitoring the risks
of loans.The firms using bank loans are significantly smaller than companiesissuing public straight debt.
Bank loans have shorter maturities. The market responded toannouncements of bank loans arragements by raising the stockprices of the borrowing companies
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I regret to inform that due to theFinancial Crises there is a strong creditrestrictions
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Current Account
Main Characteristics:Automatic association between a credit and Investment
account It works automatically in blocks of 2.500
Mensal Fee = 9,5
Free Products/Services associated:
Salary Processement*
Payment to Suppliers*
Transferences*
1 book of 150 Checks; Mail
2 Debit Cards free (Maestro Empresas);
No fee for issuing a Credit Card business
* Max 60 records Month, made in Electronic Banking
Current Account1
Credit Account
Investment Account
ADDICIONAL CREDIT*
AB
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The way it works:
Balance0: Transfers from IA to Current Account in blocks
of 2.500
IF Investment Account=0:transfers from Credit Account to Current
Account in blocks of 2.500
(Annual Interest Rate (up to 5.000- o,5%; > 5.000- 0,75%)
IF Balance < 0
C
D
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4.1. Super Conta Negcios Plus (Main Current Account)
POS
*Depends on the volume of transaction on the POS
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Credit Account
Main Characteristics:
Additional Credit into Credit Account every month,depending on the volume of transaction of the POS
Spread decreases with Cross-Selling
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Grelha de bonificao
MaximumBonification:2%
Spread standard:6,975%
Produtos / Servios Bonificao
Pagamento de Ordenados 0,75 p.p.
POS 0,50 p.p.
Pagamento de Fornecedores 0,50 p.p.
Emprstimos e Leasing's 0,25 p.p.
Desconto comercial e Factoring c/Recurso 0,25 p.p.
Recursos 0,25 p.p.
Estrangeiro 0,25 p.p.
Crdito Assinatura 0,25 p.p.
Carto Crdito Business Negcios 0,125 p.p.
Netbanco 0,125 p.p.
Current Account
Credit AccountInvestment Account
Additional Credit
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4.1. Super Conta Negcios Plus (Main Current Account)
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4.2. Domestic and International Cash ManagementPaymentsConfirming
Confirming is a payments service to suppliers
Allowing total flexibility in the payment mode (bank cheque, Clients cheque or bank transfer), this serviceallows the supplier the anticipation of the payment (deducted of an interest at a really attractive rate). The
Confirming is completely free of charge to the Client.
Reduction of costs: production and remittance of payment documents, mail to suppliers, other
administrative costs, etc.
Available for suppliers in Portugal or in Spain
Improvement of the negotiation capacity with the suppliers, namely dates of payment
Improvement of the security owing to the elimination of possibilities of forger means of payment
Improvement of the treasury management
Transmission of instructions through our EB System
Detailed information is available as follows:
- Notice of receipt and confirmation of invoices remittance
- Detailed notice of the anticipations
- Cheque Account Statement
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http://uruguay.enelmundo.com.uy/epiway/hwbsngp01.cgi?Centro,Cheques -
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The Payments and Collections Manager is a treasury module in Santander Tottas
Home Banking
4 Automatic submission of Collections returned by a lack ofprovision
Automatic creation of references to be used by theDirect Debits system and others,1
Automatic issuance of Invoices, using e-mail, 15 daysbefore, with payment reference2
Alerts*Operations unsuccessful more than 7 days / 30 days / ...*Invalid records ...
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Cash Flows forecast6
3
Inn
ovativeConcepts
Automatic batch file generator for Payments and DirectDebits and automatic batch file return details
4.2. Domestic and International Cash ManagementPayments and Collections Manager
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Portugal
PME INVESTE Credit Lines
4.3. Public Sectors Partnerships Division
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Government Supported Credit Lines Main Advantages
Benefited Interest Rates, and some times establishmentof maximum interest rate to be used;
Main fees supported by government;
Possibility to anticipate Public Incentives;
Easy Credit Access;
Better Conditions for credit: Longer time Loans ,nopayment for Capital for more time;
Less Demanding on Guarantees, because it has aGuarantee issued by SGM (Portuguese Mutual GuaranteeSocieties);
Example: PME INVESTE Credit Lines
4.3. Public Sectors Partnerships Division
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Main Characteristics
Beneficiaries: All Companies/Firms without incidentsin the Banking System, and who have no Debts to State;
Banking Fees: Exempted;
Guarantees: 50% to 75% guarantied by SGM Public System;
PME INVESTE Credit Lines
Contractual Form:Banking Credit;
4.3. Public Sectors Partnerships Division