PROCEDURES AND TERMS

procedures and terms

 

GLOBAL PROJECT FINANCE PROCEDURES AND TERMS ON LOAN PROCESS

 

 

We are ready to finance your project with our below terms and conditions. Your project will be funded at 4% (for loan amount from $5mil up to under $100mil) or 3% (for loan amount from $100mil up) fixed interest rate, within a 1year to 10years repayment period. Loan amount from $5mil up to $1bil and with our company working policies which will include presenting the below-listed documents when required for sighting/vetting and also for due diligence investigation. Our loan processing moves from one stage to the other before approval and subsequently signing of the loan contract document at closing/approved loan transfer.

 

 DOCUMENTS REQUIRED IN PROCESSING YOUR LOAN

 

 Business Plan

 Certificate of Incorporation

 Proof of Income (Bank Statement with 3 months cash flow)

 Evidence of Tax Clearance (optional)

 Business or Personal Credit Report (optional)

 Government Approval Backing Documents (For Projects that Required Government Approval)

 Passport Copy

 

 REAL ESTATE PROJECT REQUIREMENT

 

 1. Development projects are in line with their qualification level; with business license/approvals

 2. The actual function of developed projects should be consistent with planning purposes, can effectively meet the needs of the local housing market and have good market rental and sale prospects;

 3. Sound business management institutions, qualified leadership, and strict operating management system;

 4. Good operational, financial and credit status, and the ability to repay loan principal and interest;

 5. Ability to implement the way of security acceptable by our Organization;

 6. Having a valid bank account.

 

 STEPS AND PROCEDURES INVOLVED

 

 1. Application /Presentation of Business Plan or Executive Summary

 2. Repayment Calculation

 3. Board Section/Term Sheet Negotiation

 4. Desktop Due Diligence/Security Analysis

 5. Loan Contract Document Signing/Legal Registration

7. Escrow Agreement signing

 6. Transfer of Funds

 

 PROCESS BREAKDOWN

 

 Presentation of Business Plans or Executive Summary and filled Application Form:

 

 For every application, the first stage is the presentation of the Business Plan. The applicant is required to make available their Business Plan for review and filled Application Form; this Business Plan is giving to our team of experts which consists of professionals in the different business sectors. This professional run a real analysis on the plan and advise us if the project is profitable to us, if the location is suitable for investment if the business idea is viable and in a nutshell to tell us if we can finance or not. If this process receives a GO-AHEAD from the team.

 

 Repayment Calculations

 

 This stage a Repayment Schedule is prepared and sent to the client for signing. This repayment schedule contains, the Loan Amount, the Grace Period giving for the loan, The duration of the loan, the monthly or yearly repayment required, the total cumulative amount, and the total interest for the loan.

 

 Due Diligence/Security or Collateral Analysis

 

 During this stage we run a background check on the company to ascertain is existence, credibility, non-indulgence in fraud deals, acceptability in the country and feasibility as to the profit nature of the business. Securities provided are analyzed to ensure their existence, equality to the loan amount and acceptability by us. Business Loans are secured by collateral, which is the property in which a security interest is granted to secure repayment of the loan. The loan collateral may include business assets, stocks, bonds, certificates of deposits/bank statements, or personal assets. Consider:

 

 (1) the value of the loan collateral must be 50% to the amount of the loan for projects within the United States

 (2) the expected economic life of the collateral will be considered by the Lender in evaluating the collateral offered for the loan

 (3) formal collateral appraisals may be required

 (4) a pledge of personal assets may be required as additional collateral for the business loan requested

 (5) or Lender might consider securing the loan with the said project to be invested in ( for projects with good ROI without collateral backing ).

 

 Board Section/Letter of Intent

 

 After receiving your Business Plan, means of identification, filled loan application form, and signed repayment loan schedule, a board meeting is held to discuss their views on the project. It is during this meeting that a formal decision is made on whether we can finance the project or not. After this meeting, a Letter of Intent is issued in favor of the applicant. This Letter forms the rough basis for which the Loan will be given. The applicant is expected to accept Letter of Intent by signing the document and sending a copy to us together with Company Registration documents (which are Certificate of Incorporation, Trade License, and Tax Clearance Certificates), Identification (Passport Copies or Driver’s License), and copy(ies) Collateral Backing Documents.

 

 Contract Signing

 

 This stage, the Loan Contract Document is drafted by our Attorney to govern the finance contract and in line with a signed letter of intent. Strict adherence to the terms of the contract stated on the agreement is required by the client and the Loan Contract Document will be registered with the Federal High Court of Justice or Customary Court. 

 

We will close the deal using the escrow agent’s bank account. Both parties with 

 

 Transfer of Funds

 

 This is the concluding stage of the process, we instruct our Bank to deposit the Loan Amount to the escrow agent’s bank account that we work with in USA after signing of the Loan Contract Document and registration and Escrow Agreement. The time frame for financing corporate bodies varies from firm to firm depending on the size of the project(s), finance involved, and location. The expected time to conclude all the following steps usually do not exceed a period of 15 days from when the borrower submitted the application documents.

 

Administrative cost: 1% (down payment) of the face value of the loan, Success fee: 3% of the face value of the loan for the loan from $5mil up to under $150mil $10mil, 2% of the face value of the loan for the loan from $150mil up, all will be deducted from the loan. 

 

The only down payment 1% that client has to pay when received the Letter of Approval and signing the Loan Agreement, Escrow Agreement.

 

The escrow agent will charge 0.1% of the fee for their service to both parties. They will receive the down payment 1% of the face value of the loan from the Borrower and receive the Loan amount minus success fee from the Lender. Once both money has arriver to the escrow agent’s bank account, the escrow agent will send the loan amount to the Borrower and send the down payment 1% to the Lender.

 

Global Project Finance Limited

 

 

President

 

Tracy Phan