Our services
Basic guidelines for funding cases
Documentation
Client provides all the necessary information and material for the funding application process.
We can assist the client in the actual preparation of the intake package documentation (Project Plan/Business Plan and Executive Summary) which can be agreed upon separately.
Timeframe
The funding process normally takes minimum of 3 months up to a year depending entirely on the case.
Due diligence DD
Due Diligence will be performed by funders on every proposed project including project owners prior to the closing of funding. DD covers e.g. financial aspects, technical aspects, market analysis and appraisal analysis. Cost of DD is covered either by the client or is included in the funder’s services.
Other financing products
In addition to money loans, we can arrange financing facilities for trading needs (importers, exporters, manufacturers and contractors). These services include e.g. Letter of Credit, Standby Letter of Credit, Bank Guarantee, Performance Bond, Advance Payment Guarantee and Bid Bond – type of instruments.
Letter of Credit and Standby Letter of Credit - instruments are typically used to secure either the seller’s or the buyer’s interests in trading deals.
Performance Bond (or Surety Bond) is a bank instrument issued by a bank on its client’s behalf to assure their performance as per the stated contract or trade deal. These bonds are commonly used in construction projects.
Advance Payment Guarantee acts as an assurance to secure the advance payment made by the project owner or buyer towards the contractor or seller.
Bid Bond (Tender Guarantee) is issued by a bank on behalf of contractors and in favour of the project owners. This assures that the winning bidder will undertake the project or supply contract as per the agreed terms of the bid.
Minimum and maximum size deals
Minimum funding ranging from €/$500,000 to €/$50,000,000 depending on the funder with maximum being several hundreds of millions of euros.
Maximum loan to cost (LTC)
Between 70…100 %. Some funders accept hard assets, such as land, alongside cash as owners’ contribution.
Interest rate and related costs
Annual interest rate of loans is normally between 4 % - 12 % subject to funder’s conditions.
In addition to interest on loans, funders may charge completion fees, booking fees and certain closing costs such as project insurance related costs.
Maturity and grace period
Maturity of loans can be negotiated between 5 to 20 years.
Grace periods are possible from 12 to 30 months. During a full grace period, the client is not required to make principal repayments or interest payments. Grace periods are common in project funding.
Collateral / Security
In general, some type of collateral arrangement is a necessity. Collateral can be in the form of real estate or land (owned by the client), publicly listed shares, a company mortgage (floating charge) or e.g. a share pledge depending on the funder’s requirements.
Real estate collateral is normally accepted at the level of 50 % to 70 % LTV (loan-to-value) depending on the asset (asset type, location etc.).
In addition to loans, in certain cases we can arrange rental collateral facilities if a client falls short on funder’s collateral requirements. The fee structure of such arrangement will be determined by the collateral provider on a case-to-case basis.