CFOs and treasurers issuing private debt face many challenges related to the reporting of company financials and compliance certificates after deal close. Investors want timely, consistent and transparent reporting throughout the life of the bond, but many finance teams lack the resources to respond to investor requests in a timely manner. As a result, investor relationships can be weakened, making it more difficult to renegotiate deal terms or ask for forgiveness in the event of a default.
Why Adopt Cloud Technology?
Finance professionals often cite the following reasons for setting aside manual processes, such as the use of email and overnight mail, and turning to cloud technology for their bond reporting needs:
Productivity. When it comes to bond reporting, many finance officers want to “get it off their radar” and “into the cloud.” Rather than sending out individual emails to each investor, online solutions allow finance teams to quickly post all reports for investors to view in one central location, without having to wait for a signature to confirm receipt of the materials.
Security. Emails containing private company information can be forwarded to unauthorized individuals, and packages are often signed for by someone other than the recipient. Finance teams need password protection and encryption to secure sensitive data. With bank-grade security, online solutions greatly reduce the risks to the business of exposure.
Investor Relations. IR is key, especially for frequent debt issuers. Consistent investor communication produces a stronger relationship, more trust, and builds opportunity for future funding. Online solutions help streamline the reporting process for faster, accurate reporting of company financials, keeping investors happy and maintaining trust.
Choosing the Right Technology
In our experience, when it comes to selecting a platform or technology, finance professionals generally look for a solution with the following criteria in mind:
- Advanced user and document-level permissions allowing for complete control of sensitive information
- Q&A tools to cut down on ad hoc issuer-investor question and response
- Anytime/anywhere access to information via secure mobile applications
- Vendor expertise in private placement/debt workflow
- A platform already familiar to investors
For more information on how you can simplify the reporting process for your next financing deal, please see Intralinks’ solution for bond reporting.