Project Funding Questions

Project Funding Questions and Answers - Prestige Capital Partners

Here are the top questions asked regarding the project funding process. If you have other project funding questions, we would love to hear from you.

Our Services | Questions About Our Funders | Fees | Due Diligence| Working With Us

Our Services

What kind of funding programs do you offer?
We offer a variety of conventional as well as non conventional funding solutions to meet your project’s unique financing needs.

Any professional reference(s) on any recently completed transaction?
In the financing profession all transactions are treated with utmost confidentiality and kept that way even after completion. This is due to the liability laws to prevent multi million dollar lawsuits for breaking confidentiality agreement(s) in particular and our client’s trust in us is integral.

Are you the lender/funder/investor?
We act as neither lenders nor investors, but are facilitators and providers of the unique services necessary to bring lender and borrower together for a completed transaction. We do not handle monies on behalf of our clients.

Why should we trust you?
Having a background in finance holds us in good working knowledge and principles in finance. We have built the company up based on a highly orchestrated knowledge of our funders history and the private projects funded by them. We have nurtured a special relationship so that you have the best possible chance of getting your project not only on the desk of our funders but to get seen and reviewed.

How do you help us get funded?
There are a number of ways we help entrepreneurs.

  • We understand the structure and complexity of presenting a project in front of lenders
  • Our due diligence department sources credible, legitimate funders
  • We recognize entrepreneurs spend time, effort and money working on their project but it may not be presented well to the funder’s liking and are easily rejected
  • Our funders are not easily accessible to the general public
  • We also built relationships with our funders so that the process from project submission to being funded runs smoothly.

Funding Consultation Fees

How does your firm earn their money?
We charge a fee for our service represented as a percentage of the overall funding amount and where all possible we will arrange to have this added to the overall loan required upon completion of a successful funding placement.

When do I have to pay the commission?
At closing. It is also called “success fee” for that reason.

Questions About Our Funders

How do I know if the funder is a genuine?
We have a due diligence department whose job is to do background checks on all funders we partner with. We are aligned with many funders. Our aim is to help you, not hinder you.

Who are your funding sources?
Private funds, public funds, banks, insurance companies, private lenders, private investors, joint venture groups, investment companies, investment groups and private fund authorized representatives. Our direct lenders have been pre-vetted and  have a history of successful funding placements. As an intermediary, we do not accept responsibility for lender services.

Do you offer any other loan programs?
Yes.

Do you have a minimum lend amount?
Yes, due to the nature of the funding partners we deal with, they will accept projects upwards of $10 million USD.

How do I submit my project to you?
Please email us through this website with a quick introduction of the project leaving your contact number and email address. Not only is it a pleasant way for you to introduce yourself to us but it also helps us protect your information and reduce the risk of hacks, spam and other attacks. We will email you back to acknowledge your initial email inquiry. We would appreciate if you could submit your project details in full on pdf.  It’s all part of the confidentiality services we provide to our clients. If we haven’t contacted you within 5 working days, please bear with us as we do receive a large amount of inquiries.

Project Funding Fees

Are there any fees?
There are indeed related costs and fees to financing.

When do they have to be paid?
It depends on which funding source we match you with. If there are associated fees involved, we will be fully transparent and inform you of what to expect. As well, funders will often ask for proof of funds (POF) to demonstrate that you can afford the associated costs.

Do I have to pay these fees?
You are under no obligation to pay such fees until you confirm your acceptance of the loan that will obligate both you and the funder to close the deal in addition to a satisfactory breakdown of such expenses.

What are these fees for?
Every project has it’s risks and our funders draw their capital on a ‘per project basis’.  Say if you are applying for a 1.5 Billion USD loan, one could question how a funder can protect themselves to fund a high valued project compared to that of one for 15 Million USD? Funders have ways to mitigate such risks and as such these fees in general go towards the cost of setting up the loan structure.

What are the loan “expenses” for?
Loan processing costs and miscellaneous expenses are all administrative costs which could include activities such as  phone calls, paperwork, printing, photo copying and faxing that needs to be done in order to perform the due diligence. The processing cost can vary from one funder to another. We will inform you of such costs beforehand.

Due Diligence

What is “due diligence”?
Due diligence is the process of investigation, performed by investors, into the details of a potential investment, such as an examination of operations and management and the verification of material facts.

What is involved in performing “due diligence”?
Due diligence is a process whereby the funder does background checking such as going on site visits and investigating issues such as:

  • the environmental impact
  • investigation and verification of assets
  • permits and licenses
  • legal matters reviewing the projects financials
  • meeting with project principals and relevant management personnel
  • acknowledgement of product issues and evaluating the marketing strategy
  • foreign operations
  • take off agreements
  • plus a host of other checks not included in the list.

The funder or his representative could also engage and/or consult with companies or service providers representing the project such as accountancy firm, law firm and construction firm plus others. Sometimes not all of these tasks are necessary.

KYC – Know Your Client
It is standard to send copies of identification to funders, they (the funder) need to do their due diligence which is otherwise known as KYC – know your client. This is law and is standard throughout the world. It is how banks protect themselves from potential money being laundered through their banks. This is standard procedure in the banking world.

How much does it cost?
Due diligence costs vary on the nature, size and location of the project. Due diligence costs will often include:

  • Flights
  • Accommodation in the country
  • Project location
  • Legal/professional fees

Why doesn’t the funder pay for due diligence?
The due diligence cost is normally the borrower’s responsibility. Funders receive many projects a day from all around the globe- of which yours will be one. Once you realize the huge amount of money that they will have to spend on investigating each project that shows promise every day of the year, it becomes clear why they will not adopt such a practice. It would be impossible to pay for so many projects’ due diligence expenses on a daily basis.

Others promise the money and guarantee closing, can you offer me such security before I pay any expenses?
No. This is false security. In the financial world there are no guarantees or promises. The only security you can have is when the money is in your company’s bank account. We suggest if any individual or company offers you such false assurances that you should walk away from whatever they are assuring you of.

Where is the loan coming from?
The loan will come from the sources mentioned above. In many cases it takes more than one source to get the full loan amount that your project requires. The funding sources we deal with are often big investment funds who oversee billions of dollars worth of transactions every year.

Is international financing different from regular bank financing?
Yes. International financing can indeed be different as there are cross border transactions and laws which be less stringent than if you were to go to your regular bank. Usually with a main stream bank they will only fund up to 70% of the project.

Why is my bank not offering me the same deal?
Banks must abide by the international banking rules and regulations. However private investors, private lenders and international traders do not have the same rules and regulations. More importantly, banks do not offer creative financial solutions for your unique funding situation.

How can your sources offer such a good deal?
They can use international trading programs as their leverage for making a loan and/or offer the security the bank needs to approve the loan. Or they draw upon their many capital providers they have relationships with.

What about a conventional loan from a bank or other financial institution?
A conventional loan will often require collateral and will do stringent credit checks whereas other financial institutions can sometimes lend out funds without collateral.

What do I need to provide such security?
Existing personal or corporate assets, bank guarantee, insurance guarantee and AAA bonds or similar. In some cases a combination of 2 or more of such securities will be required.

How can I offer my existing personal and/or corporate assets as security?
An acceptable, reputable and internationally well recognized appraisal company that meets the standards required must appraise such assets.

How can I get a bank guarantee?
A bank guarantee can be issued by most top 50 banks in the world. The instrument is a tool used worldwide to raise funds. Once the guarantee has been issued it then has to be monetized. There are many different financial organizations and service providers who can monetize the instrument.

Just be aware there are also lots of bogus companies in this arena who claim that they can issue and/or monetize bank instruments when all they are really after is upfront fees. Buyers beware!

Working With Us

Do you work with intermediaries?
At this time we have to refuse intermediary partnerships. As we have many direct inquiries, we place these at the fore taking higher priority. If you have clients who are sitting on collateral, we might display some interest. We do not accept “daisy chains”.

Project Funding Questions was last modified: April 12th, 2017 by Denise