Good borrowers are fundamental
One of our fundamental rules as a provider of credit is that we endeavour to lend to “good borrowers”.
What defines a good borrower? There are four critical traits. First, the skill and experience of management can be a major driver and determinant of future performance. Second, we want to see strategic, practical business plans that are underpinned by sensible assumptions and appropriate incentives. Third, we look for committed ownership and management. Fourth, and finally, is the product or service they sell saleable and marketable?
Borrowers with these characteristics tend to be transparent in their dealings with lenders, have a strong willingness to address lender concerns and keep them well informed.
Meet the author
Hiran Wanigasekera
Hiran is an Executive Director and Co-Head of IFM Investors' Australian Diversified Credit capability. He responsible for joint management of key credit portfolios, credit product strategies and managing the day-to-day running of debt portfolios. Hiran has worked across a wide range of credit sectors and industries including bank lending, corporate credit and structured investments.
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