GUIDE

Project Finance

Question and Answer Guide

Please read all the information given here carefully as it should answer any questions you may have about our project finance service including questions concerning project eligibility and application procedures.

 

Please click on the link below to take you directly to the appropriate section or scroll down to read the entire page.

a). It shall be the liability and responsibility of the Borrower to mobilize the pre-incorporation expenses and minimum paid-up capital, as required by the Lender.

b). The Borrower has to agree that entire loan shall be used solaly for the purpose of the project, as mentioned in the Loan Application and not for any other purpose, The Lender shall have the power to sensure proper end use of funds and in the event that it is found that the end use of the Loan is contrary to the terms/ conditions of the agreement or the loan application the loan may be recalled prematurely by the Lender

Upon payment of all sums secured by the Mortgage, the Lender shall discharge the Mortgage without cost to the Borrower

If the Borrower shall become bankrupt or insolvent, the principal and all accrued inrerst on the loan and any other dues shall thereupon become due and payable forthwith and may be recovered by possessing and disposing off the assets of the company on which the Lender holds lien, anything in the agreement to the contrary notwithstanding.

If one ore more of the events specified in the events of default shall have happened then the Lender by a return notice to the Borrower may declare the entire Loan given and all accrued interest on the loan that may be payable by the Borrower under or on terms of the agreement and/or any other agreements, or ducments subsisting between the Borrower and the Lender as well as all other charges and dues to be due and upon such declaration the same shall become due and payable forthwith, notwithstanding anything to the contrary in the agreements or documents.

a). Payments of Dues. Default shall have occurred in repayment of principal amount and interest thereon and on payment of any other amount due and payable to the Lender in terms of the agreements or documents that may be subsisting or that may be executed between the Borrower and the Lender here and after.

b). Performance of Covernants. Default shall have occurred in performance of any other covenants, conditions and agrreements on the part of the Borrower under the agreements  between the Borrower and the Lender in respect of this loan and for any other loan and such default shall have continued over the period of 30 days after notice there of shall have been given to the Borrower by the Lender.

c). Supply of Misleading Informantion. ANy information given by the Borrower prior to or during the course of incubation & interaction with the Lender under this or any other agreement is found to be misleading or incorrect in any matetial respect.

d). Inability to Pay Loan. If there is reasonable apprehension that the Borrower is unable to pay this dues or proceeding for taking him into insolvency has been commenced.

e). Sale or disposal of Property. If the company's properties on which the Lender has lien is sold, disposed of, changed, encumbered or alienated.

f). Failure to funrnish information/ documents. If the Borrower fails to furnish information/documents as required by the Lender under the provisions or the agreement.

 

The property manager for the Property shall be an affiliate of the Client or another person subject to the approval of the Lenter in its sole and absolute discretion and the proberty management agreement relating to the Property, shall be subject to the approval of the Lenter in its sole and absolute discrection. The Client shall collaterally assign to the Lender all of its rights under the manarement agreement, which shall be subordinate to the loan and the lien of the security instruments. The Lender shall have the right to caise the Client to terminate the management agreement following loan defaut or a default under the management agreement, if the property manager shall become insolvent or a debtor in bankruptcy, engages in fraud, gross negligence, willful misconduct or misappropriation of funds, the Lender have the full right to subject the Client to replace such manager with a qualified one.

 The  Security  fee 1% you have to pay first to get the loan and success fee will be deducted from the first tranche

The Client will be propse what bank account will receive the Loan. Total loan amount will be release in about 1 or 2 or 3 tranches base on the need of the project.

 

The Loan shall be secured by a perfected first priority ( subject to certain exceptions to be set forth in the loan documentation) security interest in the following:

a). All present and future shares of cabital stock of each domestic subsidiary and, to the extent no material adverse tax consequences would result, foreign subsidiary of the Client's company.

b). All of the present and future property and assets, real and personal, of the Client's company including, but not limited to, machinery and equiqment, inventory and other goods, accounts receivable, owned real estate, leasholds, fixtures, bank accounts, general intangibles, financial assets, investment property, license rights, patents, trademarks, tradenames, copyrights, chattel paper, insurance proceeds,

contract rights, hedge argeements, documents, instruments, indemnification right, tax refunds and cah; and

c). All proceeds and products of the property and assets described in clauses (a) and (b) above.

Late fee is the Client has to pay a late charge of the amount for each installment that remains unpaid more than 7 days after its Monthly Due Date. This late charge shall be paid as liquidated damages in lieu of actual damages, and not as a penalty.

If the Client decides to exit from the incubantion before the specified period, the client undertals to repay the entire loan and interest due thereon prior to the exit from the incubation center. There is no fee to exit earlier.

The Lender will arrange a call to the Client when the Client is signed and stamped all the documents required from the Lender. The Lender is done with the Due Diligence with the Client and the project. The Lender will call the Client by the phone number that the Client gave in Loan Application Form. The Lender will ask the bacis question about the project. After the call, if the loan is approval, the Lender will send the Loan Terms Sheet.

No, The repayment per month will be the princaple + the interest divided to total months in your loan duration

No we can give Loan for most of the countries 

The curency of the Loan can be in USD, Pound, Euro

We don't need to meet face to face with the Client. All the process is online. 

The interest rate is 3% annually with the loan amount from $100mil up, 4% annually with the loan amount under $100mil. The Client will have the repayment scheduale. The repayment schedule will be monthly, it will be included the interest and the principal loan amount divided equally to the total months stated by the loan duration which the Client got approval. 

The total time frame of the process from the day the Client submits the Loan Application to the day to release the funds is about 15 days. This time frame will also depend on how fast the Client can deliver all the required documentation.

The Client has to pay upon receiving the Loan Terms Sheet. This payment has to pay separately with the Loan. This payment cannot deduct from the Loan. 

The Client has to pay 100% the  Security  Fee. We do not do 50% deposit. This Security Payment will be refunded to the client after they finish the loan term. We only use the escrow agent's accounts that we work with to close the deal.

To receive the funds, the Client will have to pay the Administrative Fee  1% of total loan amount at the step that the Lender already called the Client to get the final decision to approve the loan. The Lender will issue the Letter of Approval. This Letter of Approval will state all the detail of the Loan, repayment due date,  the Administrative Fee. 

 

The Client doesn't have to pay the interest of the Grace Period. Maximum we can give 12months of the Grace Period.

The Client can purpose the Grace Period that they wish to have. After do the Due Diligence of the project, The Lender will give the Grave Period time that is acceptable. Sometime it will be less than the time the Client wishes.

There is no Due Diligence cost because our Lender will do their own Due Diligence work. This cost the Client doen'st have to pay.

To apply the Loan, please download the Loan Application form, fill all the infomation required then send back to us by email. We will reply to confirm that we have received the Loan Application from you and will comunicate with you to get more relevant documentations required for the loan process.

What is the difference between a broker and a representative?

A broker introduces project finance applicants to us but does not represent us. A representative introduces project finance applicants to us and also represents us.

I am a broker, do you pay commission to brokers for introducing projects to you?

Yes. We pay commission to brokers for introducing projects to us.

How much commission do you pay to brokers for introducing projects to you?

The amount of commission we pay to brokers is determined on a project-by-project basis and is subject to written agreement.

When do you pay commission to brokers for introducing projects to you?

The commission we pay to brokers is paid when we receive our success fee.

I am a broker and I would like to introduce you to some project finance applicants, how do I proceed?

Each day we receive many applications from brokers. In the past we have held sometimes very lengthy discussions with a broker only for the broker to eventually present us with a number of unrealistic, non-financeable low-quality projects. This has resulted in a great deal of time being wasted. Since we receive our commission only when finance is placed with a project, we have absolutely no interest in projects which we believe we will not be able to finance. Consequently we now require all brokers to demonstrate that they have at least one viable project before we enter any form of discussion. To do this please follow the standard application procedure by completing the online Loan Application Form. Please note that separate projects must be on separate forms. There is no need to divulge your client’s identity at this early stage, simply give your name (state that you are a broker) and contact details in lieu of your client’s name and contact details.

I would like to be your exclusive broker for a particular region. Would you agree to this?

No. We do not offer brokers exclusive regional rights.