Since all CFOs will want to understand why the current debt compliance process needs to change and see a quantification of the benefits that our services provide, we have developed the following process for building a persuasive business case for our services:

1. We have a preliminary discussion on your existing debt compliance process and needs.
2.  Based upon this discussion, we have a 45-60 minute web demo of our services tailored to your needs with some indicative pricing.
3.  If you want to proceed further, after we send you our NDA or we sign your NDA, you:

  • Provide conformed copies of your debt agreements so we can price our services for them
  • Provide your existing debt compliance work (covenant lists, questionnaires, calendars, etc.) if you want us to see whether we can build off your work
  • Answer a 12 minute questionnaire on your debt compliance practices

4. We review with you a first draft of a business case with firm pricing for improving your debt compliance practices that includes:

  • A benchmarking analysis of your debt compliance practices against companies with similar credit ratings and debt from the over 400 respondents to the AFP Debt Compliance Survey.
  • A technical default expected loss analysis given your credit rating and debt volume based upon the latest annual S&P default and transition rates study.
  • Several different service proposals with firm pricing for determining the least cost solution for applying our services against your debt agreements and risks, as not all services need to be applied against all agreements.
  • Key terms of our service agreement.

5. If you like what you see, we agree on the desired level of services for which debt agreements and you:

  • Provide us with the company’s debt issuance costs to bracket against our implementation fees to show the reasonableness of our pricing.
  • Confirm with Controller’s that the implementation fees can be capitalized with the debt issuance costs or as software development costs.
  • Confirm our default risk and expected loss estimates or provide your own estimates

6. Our final proposal presentation will reflect our joint agreement on the recommended least cost services and the arguments justifying them.

    • We will provide you with the soft copy for your use in preparing your own presentation
Fees
Firm quotes for the implementation and annual service fees are only provided with a business case presentation after we review the debt agreements and agree on services.

  • The implementation fee includes six months of free technical support and is typically amortized as debt issuance or software development costs, usually a small fraction of 1 bp of the debt.
  • The annual service fee includes free service upgrades and 5 hours of technical support.
Delivery Date
Typically, within 6-8 weeks of contract signing, with the web questionnaire done earlier.
Maturity Date
As client determines out to the end of the longest agreement’s maturity, but may be terminated at any time at client’s option at no cost.
Number of Users
There’s no limit on the number of users who can access the system. We have an extensive set of user rights controls for each DCS Manager.
No Risk 100% Guarantee
If within 90 days of the Final Release Date of all functionality, the website functionality is not as demonstrated to you, we have 30 days to rectify any errors or omissions to your satisfaction or we will return 100% of the fees paid.
Client Review
Client Legal and Treasury and advisors will review drafts of the services to determine that they accurately reflect the terms of the agreements.
Other Terms
Mutual Confidentiality, Warranty, and Limitation of Liability.

See Building the Business Case for how to get firm quotes for your debt compliance risks.