This product was initially designed for a construction company conglomerate which operated and financed many projects concurrently through subsidiaries, some wholly owned, some associated companies. The challenge was to note and to aggregate the funding requirements and, then to note available security and, finally, projected cash flows.

The Optimum Borrowing Model - set up on a spreadsheet - used a judicious and flexible mix of term loans, overdraft, commitments and revolvers to minimise the cost of funding, to avoid unearning surpluses and to avoid unnecessary recourse to personal guarantees.

The borrowing model has since been retuned to address the borrowing requirements of a US multinational with a wide range of currency receivables, payables and foreign currency assets. The model has also proved highly effective in harmonizing interest rate costs and in reducing bank margins.