Project Financing FAQ

Q: Why do you divide the size of project at USD30 Million?
A: We have two groups of investors. One group has minimum requirements of USD30 Million. The other group will do smaller projects.


Q: Are there any restrictions on type of project you will finance?
A: Restrictions vary amongst investors. In general, projects in most countries can be financed and most industries are acceptable. Contact us directly to further discuss your project.


Q: How long does it take for our project to be approved? How long to fund?
A: From time your complete project packet is received, it takes approximately two weeks to review it and issue a preliminary proposal. Funding may occur within 30 to 60 days thereafter.


Q: I need to quickly close on a property acquisition. Can you help me?
A: If you need a quick closing (less than 30 days) for acquisition or re-financing, then a hard money or bridge loan may be your only option. These types of loans typically have higher interest rates and costs and lower Loan to Value ratios. Contact us directly to further discuss this option.


Q: What are my chances of being approved?
A: The investors want to see a project that makes sense and has enough cash flow to make loan payments. If your project packet provides a true, accurate picture, most likely it will be approved.


Q: What are the interest rates and terms?
A: Interest rates are typically competitive with traditional lenders. They may be based upon LIBOR or U. S. Prime, plus. Loan terms may vary from 1 year to 10 years or more.


Q: Do you only do debt financing?
A: Our investors prefer a conventional loan. However, debt/equity options will be considered.


Q: Can you do 100% financing?
A: Traditional lenders will limit financing to 80% or 90%. Our investors can do up to 100% financing.


Q: My project will take one year before we see a cash flow. Can we delay loan payments?
A: Loan payments may be tailored to your needs, whether you want quarterly or annual payments or interest only.


Q: We have special requirements, can we still qualify?
A: When you submit a project packet, you should detail those requirements. The investor will attempt to structure a loan to fit your needs.


Q: How much collateral do I need?
A: Each investor establishes their own collateral requirements. Your loan request letter should state the collateral you are offering.


Q: Our project is viable, but we lack the required collateral. What do we do?
A: You can request assistance in locating a collateral provider.


Q: Our feasibility study / business plan was written in another language. Is that OK?
A: Our investors are English speaking. If documents in the project packet are in another language, an English translation should be included. It is not necessary for translations to be certified. (Except for official government documents approving the project or guarantees.)


Q: Are there any upfront costs?
A: Whether you go to your local bank or a traditional lender, they will charge you for processing a loan application. Our investors require a retainer be paid to an attorney to cover costs for due diligence and drawing up loan documents. For some projects, a site inspection may be required and the borrower is expected to pay for travel expenses. Retainers and processing fees vary between investors and will be detailed in the loan offer.

To help with loan processing, your project packet should be complete and accurate. In the event editing is needed, we can provide that service at our current rates.


Q: Can upfront costs be paid at closing?
A: In the case of retainers, the answer is NO. Once loan processing begins, expenses are incurred and must be paid.


Q: Can I negotiate upfront costs?
A: No. The investor and his attorney have accurately calculated cost of processing loan documents.


Q: Do you work with loan agents or intermediaries.
A: Yes. Please have the agent contact us directly to introduce your project.

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