Whether your company is navigating market disruptions, preparing for tighter bank lending conditions, or assessing refinancing timelines, your treasury team must proactively manage your financial strategy to safeguard liquidity, mitigate risk, and capitalize on opportunities as they arise. At Redbridge, we have conversations with clients every day so we took the opportunity to compile the top seven questions treasury leaders are asking and the answers you need to navigate these financially volatile times.
“You could wait and hope financing rates get better, but conditions could deteriorate further. In times of volatility, there can be short windows of favorable conditions. Prepare in advance so you can move quickly because refinancing doesn’t happen overnight.”
Audrey Lokker
Redbridge Debt Advisory
How Treasury Teams Should Navigate Debt in Volatile Markets
Q1: What are other companies doing to respond to current volatility?
At Redbridge, we’ve observed companies pausing new investments, holding onto cash, and reassessing financial forecasts. Many are proactively engaging banks, preparing for tighter credit environments, and assessing refinancing opportunities to maintain financial flexibility.
Q2: Should we renegotiate bank fees in this climate?
Yes—but not alone. Banks are highly sensitive now due to increased portfolio risks. Treasury teams should leverage expert guidance to ensure negotiations protect vital banking relationships rather than disrupting them unnecessarily. Redbridge’s independence ensures clients achieve favorable outcomes without damaging critical partnerships.
Q3: How long does refinancing or financing take?
To be fair, if there is a lot of money to be made, financing partners can move very quickly, the following guidance requires focus but are not overly aggressive time frames:
- Simple maturity extensions: Approximately 4–6 weeks.
- Major changes, facility restructures, or new financing: Typically 2–4 months.
- Capital markets or complex restructuring deals: Often 3–6 months or longer.
Timing matters, and waiting could mean missing critical refinancing windows, exposing companies to unnecessary risk.
Financial Priorities and Managing Credit Risks Amid Uncertainty
Q4: What financial actions should we prioritize?
- Clearly understand your company’s credit profile and proactively manage relationships with rating agencies and lenders.
- Evaluate refinancing opportunities to capitalize on favorable market windows.
- Diversify financing sources globally to mitigate geopolitical and tariff-driven risks.
- Strengthen your hedging strategy to protect against currency, commodity, and rate volatility and other market disruptions.
Analyze your exposure to external disruptions such as tariffs, supply chain disruptions and customer risk.
Q5: What’s the current risk with banks and internal ratings?
Banks often downgrade internal risk ratings for numerous companies in periods of economic uncertainty. This reduces the profitability of loans, and puts upward pressure on pricing and pressure to reduce risk. Proactive communication can help companies maintain or even improve their perceived creditworthiness.
Q6: What if my company doesn’t know its credit rating?
You’re not alone. Many treasury teams lack a clear understanding of their credit profile and underestimate how external ratings can anchor banks’ perceptions. Redbridge addresses this critical gap, offering clarity on credit ratings, improving communication strategies with banks and rating agencies, and mitigating unnecessary financing risks. We also recommend asking your banks for their rating on your company and debt. They will not always answer, but some countries require banks to provide this information.
“Right now, companies are pausing investments and holding onto cash. Banks are re-examining their portfolios and evaluating risk ratings. Understanding your credit profile has never been more important.”
Audrey Lokker
Redbridge Debt Advisory
Q7: Should companies prepare different financial scenarios (recession vs. non-recession)?
Absolutely. Recently, a number of companies have withdrawn public earnings guidance and United Airlines even offered two ranges of guidance for recessionary and non-recessionary scenarios. Understanding how you can survive extreme scenarios will allow you to make investments and grow while other companies retreat. Companies should model multiple financial scenarios, ensuring they remain agile, informed, and ready to act as market conditions evolve.
Take Strategic Action with Redbridge Debt Advisory
Treasury leaders who engage early, clearly understand their credit standing, and strategically manage their banking relationships will better navigate volatility. At Redbridge, we empower finance and treasury teams with independent expertise, global market intelligence, and customized solutions designed to strengthen your financial position even amid turbulence.
Start asking the right questions and get ahead of volatility today.