o financiamento a empresas: o caso do santander

7/30/2019 O financiamento a empresas: O caso do Santander

1/18

Luis Santos

Banks have ongoing deposit and customerrelationship


2/18

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


3/18

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:

3

MENU INCIO

1.1.Trade Off Theory


4/18

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;


4 MENU INCIO

1.1.Trade Off Theory


5/18

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;

5

MENU INCIO


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;


6/18

6 MENU INCIO

1.4. Pecking Order Theory

Firms normally prefer:

1st) Retained Earnings;

2nd) Debt;

3rd) New Equity;

4th) Convertible Preferred


7/18

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;

7 MENU INCIO

* 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.


8/18

Recognizing managements incentivesto issue overvalued securities, the

market systematically discounts thevalue of firms announcing newofferings.

8 MENU INCIO

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;


9/18

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.

9 MENU INCIO


10/18

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

10 MENU INCIO


11/1811 MENU INCIO

I regret to inform that due to theFinancial Crises there is a strong creditrestrictions


12/18

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

D C

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

1

4.1. Super Conta Negcios Plus (Main Current Account)

POS

*Depends on the volume of transaction on the POS


13/18

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

2

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

2

4.1. Super Conta Negcios Plus (Main Current Account)


14/18

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

D C
http://uruguay.enelmundo.com.uy/epiway/hwbsngp01.cgi?Centro,Cheques


15/18

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 ...

5

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


16/18

Portugal

PME INVESTE Credit Lines

4.3. Public Sectors Partnerships Division


17/18

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



18/18

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;


o financiamento a empresas: o caso do santander

Documents