Principles of our relationship with financing partners
"We apply the same principles to our business relationships with financing partners as we do to our business relationships with suppliers and customers. In particular we maintain an open and partner-like relationship focusing on long-term cooperation. Our financial communication is focused, open, on the point, prompt and reliable. This is what we expect from our financing partners as well."
Based on our vision "Our competitive lead in technology optimises quality, costs and delivery service in our customers´ production process" and based on our corporate principles, we laid down the following aims for our financing partners:
- securing liquidity of the Kurtz Ersa Corporation in the long run
- continous improvement of the common finance processes and products
- securing competitive financing conditions
- mutual confidence in performance and services
On an equal footing our financial communication is to convey a transparent, honest, immediate and reliable image of our business to our finance partners. We use our financial communication internally to continuously inform our staff, management, board of directors, advisory board and shareholders. We use both internally and externally a uniform reporting system which acts as controlling instrument for the entire Kurtz Ersa Corporation.
The corporate division Finance and Controlling carries out and controls the financial communication and finance management of all the companies of the Kurtz Ersa Corporation worldwide. Consolidation is effected in the corporate division Finance and Controlling.
We use the cost-of-sales method. The consolidated financial statements are prepared according to the German Commercial Code (Handelsgesetzbuch, HGB). The financial statements of the group companies are drawn up and approved in accordance with the relevant national laws. All figures are based on our ERP system SAP R/3 which we use worldwide.
We use the intruments listed below to cover short
to medium-term external financing needs for our business activities:
- bank loans
- club deal / consortial
- Mezzanine financing instruments
- bank guarantees
- customer credits in the form of deposits / Letter of Credit
- supplier credits via payment conditions with full cash discounts
- factoring / forfeiting
- commercial credit insurances
We plan our business using our integrated planning system. The result is a linked profit and loss, balance sheet and cash flow planning. In addition we also keep a rolling 3 month forecast. We use the strategy planning for the medium- and long-term plans.
The liquidity planning is also made with our integrated planning system. Furthermore we also keep a rolling liquidity planning with a 13-week-horizon, based on the expenditures and incomes stored in our ERP system SAP R/3.
Preconditions for a cooperation
Common core values and aims are essential to us for a long-term partnership. Its basis is an open bilateral exchange of information with the aim of mutual understanding - finally resulting in a comprehensive rating and corresponding conditions.