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Debt Financing
Banks are one thing you can never bank upon, We offer a full range of financial services for private and corporate clients..
Businesses seeking
long-term debt financing to expand must have
collateral, The scheduled repayment for the loans
is usually up to 10 years max, with fixed interest
rates.
Most companies choose to finance through debt
rather than equity to preserve company ownership,
Debt capital is extended by a lender, who is
entitled to the repayment of the principal amount
along with interest. This enables business owners
to maintain full ownership of their company and
cease any obligations to the lender once the debt
is fully repaid. If a borrower is unable to repay
or refinance a loan, the lender has the option to
take legal action to recover the outstanding loan
amount along with the accrued interest by seizing
the borrower's assets.
How It Works
We review each client’s goals, risk tolerance, and determine a plan best suited for that client. To meet clients’ needs we use a variety of methods to meet your funding requests.
Firstly we evaluate the project, Project evaluation involves understanding the assumptions regarding revenues, operating expenses, capital expenditures and other general assumptions like working capital and foreign exchange. A business model involves many estimates and assumptions, We need to assess the financial viability of the project in light of sensitivity analysis coupled with ratio analysis.
Prior
to investing, we assess the risks which
the organisation may face in its
activities, and whether the
organisation's policies and procedures
are adequate to reduce those risks to an
acceptable level. If the assessed risk,
even with the organisation's policies
and procedures factored in, is still
high, the organisation can decide
whether increased controls would reduce
the risk to an acceptable level.
Due diligence in project finance is a process that consists of multiple steps to ensure the most comprehensive analysis, Adequate due diligence is an importance mechanism for investment. All risks can't be avoided, The aim of due diligence is a reasonable and proportionate level enquiry into the specific aspect to enable decision making before investment.
Frequently Asked Questions
What is a secured loan and how does it work?
A secured loan is a specific type of loan that is supported by collateral, which refers to the assets owned by the borrower. By having collateral, the risk for the lender is reduced. In case the borrower fails to repay the secured loan, the lender has the authority to take possession of the collateral that was used to secure the loan.
What is the time-frame from due diligence to loan closing?
Loan Closing is usually about two weeks after the due diligence date, but it can be longer. The due diligence period is, on average, three to four weeks, depending on how fast documents are received and processed for verification.
Types of security needed for a debt finance?
We often set specific requirements for what can be used as collateral on a secured loan. For example Company shares, Stocks e.t.c. The collateral depends on the loan amount involved.
What are options available for startup companies?
We offer various
options to cater to our clients' needs, allowing
start-up companies without physical assets to use
company shares as security.