Project Funding Questions - How Project Finance Works

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.

A Polite Notice To Intermediaries

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. When you give us your project details, we can then suggest options for you before passing details to the appropriate funder.

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 stead and we are able to offer extensive knowledge in project 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.

Prestige Capital Partners and associates have a background in different sectors in the financial industry. We can also work alongside your lawyers, CFO’s or any qualified industry professionals to get your project funded. Having been in the regulated field, we care about our clients and their money. There are too many scams in this industry so that is why we try and add additional safeguards in place for you.

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.
Credit and personal checks may be carried out
We use lawyer and escrow services

Please note we don’t guarantee that we can fund all projects. We do not provide any seed funding or “100% project finance”; therefore you may be required to put some skin in the game.

Funding Consultation Fees

How does your firm earn 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. We may utlise services of other close associates which may charge a fee.

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 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 and 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, this is noted in our terms and conditions.

Do you offer any other loan programs?
Yes. We offer both conventional way of funding and a non conventional. The non conventional way is a lot quicker and less onerous.

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 using the contact form 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 7 working days, please bear with us as we do receive a large amount of inquiries. (The period of time may change if there has been religious holidays, we usually experience delays of up to two weeks).

How long does it take to get funded?
It can take anywhere from 10 days (rare) to 9 months. It depends whether you have any cash equity, collateral or bank instruments. Other factors include the amount of risk and if permits are all in place. Funders may choose to visit the location of the project. Put it this way, if you submit a project to a bank, it can take up to a year to find out if they have the interest to fund a project.

We help people as much as we can by allocating you to funders who do not ask for a high fee. We have not come across any funder who do 100% project finance. With international financing, most lenders require cash equity or a large equity stake. It is almost impossible to fund a project that does not have any collateral. It doesn’t matter how good or innovative it is. If someone requires funding for $100M, it helps if the project has $10M cash equity.

How to get funded fast?
Projects can get funded fast if they have cash equity. There are a number of ways which Prestige can help fund your project. We can either enter you into a trade platform or help you obtain bank instruments such as an SBLC

Questions About Bank Instruments

SBLC | L/C Trade and Commerce | BG

How can I get a bank guarantee?
A bank guarantee can be issued by most top 50 banks in the world – most recommended are in the top 25. The instrument is a tool used worldwide to raise funds. Once the guarantee has been issued it can then 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!

Can a business be financed using a bank instrument?
Yes, many businesses are financed using a bank instrument.

Why should I trust it?
We work with qualified finance professionals. There are paper trails in the leasing, monetizing and trading process. We use escrow, underwriters and lawyer services in most cases. Strict due diligence will be done before entering into the monetising and/or trading process which include checks by Interpol. By law our group require certain forms to be filled out such as a CIS and will ask for copies of passports. We do everything inhouse which means our Providers, Banks, Monetisers and Trade platforms all work together otherwise known as vertical integration. We can also work with lawyers and solicitors who handle fees and some are mandated by the above mentioned service providers.We have a number of Providers and Monetizers so requirements may differ.

What are the risks?
There are some issues that we have come across whilst processing a bank instrument. Unfortunately we can not write about the risks due to the chance of content copy and fraud. Fraudsters who say they can issue/put you infront of Providers see this model of funding as a chance to make a quick buck. Some people lack experience in these type of transactions. Unfortunately the more content on the web made available to such people only makes them appear geniune putting more risk on the enquirer.

Please remember that you should not have to pay for a Providers or Intermediary upfront fee, the payments of an instrument should be clearly set in the DOA.

What are your leased rates?
We do not advertise our “lease or purchase” rates as we have several Providers. However, if you have a project that qualifies, we can help get your business funded fast. We also do not advertise LTV for monetisation as it also depends to whom we put you through.

Can I purchase/lease a bank instrument through you?
Yes. (If you purchase an istrument from us, we have the ability to enter you on a trade platform, conditions apply.)

Are there any upfront fees?
At the moment we have various Providers with different conditions. Some Providers may require an upfront fee, others do not. Some you can negotiate on terms, some you cannot. As we are aligned with a number of Providers and Monetisers, we can guide you through the process or select the most appropriate one to suit your needs. If you feel that paying the SWIFT fee is not for you, you may be required to give POF/BCL.

What’s your procedure to get an SBLC?
Different Providers have different procedures, it depends on your requirements. Please understand; procedures are there for a reason, it is not advisable to make changes on the DOA. We will try and align you to the best possible solution for your enquiry. Attempts to make changes can be frowned upon as it’s a service based on trust. We can now offer trade and commerce letters of credit.

Can we change the verbiage to suit our needs?
On some DOA’s yes, but can be frowned upon if the terms are completely erased! Please leave the procedure in place (as above) The terms can be negotiated and fulfilled by both Parties. We need to know the reason why you need the SBLC and/or why you need to change the Procedures. The wording on the contract is clear as Providers have their terms.

Do you monetise bank instruments?
Yes. Although this is mainly done in house. Before submitting and instrument to us we ask that all documents must be legitimate and up to date and specifically worded. Strong due diligence will be done, please do not submit fraudulent documents! We can monetise both rated and non rated instruments. Terms and conditions apply.

Has your group done any deals?
Yes, many deals. We work with financial companies with funding history.

FYI: We aim to keep commissions low to match the markets going rate. Our group only gets paid upon successful placement from Providers/Monetizers. Trade Platforms may very which you will be notified.

How easy is it to get on a trade platform?
It’s not easy to get on any top tiered trade platform. If you have a willingness to accept our groups in house products (which means using services through Prestige) we can get you onto a platform. Again, paper trails and checks will be done. Please note that most traders will want to see a trail of how the money was derived and where it was initiated which makes sense to use vertical integration whereby one service provider feeds into another. Terms and conditions apply.

Can your trade platforms be used for wealth building?
Yes. This is totally different from project finance though. Terms and conditions apply.

Why should we choose you?
We have streamlined the process making it easy to apply for an SBLC, you don’t have reams of documents therefore you can get a bank instrument within weeks. Our Providers work fast!

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 our Group take into account the details of a potential client(s) – (KYC) by taking on assessments such as an examination of operations and management and the verification of material facts.

What is involved in performing “due diligence” for project funding?
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. Part of the KYC will involve proof of identity which means you will be asked to supply a passport and any other form of documentation proving who you say you are. Attempts to make false representations or attempts for fraud and/or M.L. will be passed to to the relevant authorities. Our group has a responsibilty to risk assess each case. Please read our terms and conditions for further information about our AML policy.

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.

What due diligence is done in the SBLC monetisation?
This is a two step procedure performed by our group and if necessary by the trader.

Additional Information

Investors in Projects
Prestige works with their own funders or funders that have been recommended to our group. There are conditions to be met concerning investing in the projects that have been submitted to us. This is outlined on the page called “Investors“.

Prestige Group Investments
Through our associations we have a number of investment options to help build wealth. You can inquire about them using our contact us forms or subscribe to mailing.

Solicitations For Bank Instruments
As we have reliable sources of Providers, Monetizers and Traders, it’s important that we stand as a reputable company and will not accept solicitations unless the Provider can demonstrate that they are genuine and credible. Please read our Terms and Conditions, we have updated them to include our AML/TF policy. Attemtps to engage in illegal actions such as fraud, Money laundering and other suspicious activity will be taken seriously.

Intermediaries

Do you work with intermediaries?
Only in certain circumstances – yes. It largely depends on your reputation and industry background. If we decide to take you on, please don’t be offended to fill in CIS/KYC and other appropriate questionaires about you and your company.

Due to EU regulations and other Data Protection laws, we aim to conform to the new ruling as much as possible which means we restrict working with intermediaries outside the Prestige Group. We are not held responsible for your (non) conformity in these new regulations if either you or your client is based in the EU. We have a right to protect Trade Secrets and business interests so we prefer to collaborate with Project Owners directly. We presume that if you pass business on to us, YOU have been given prior permission by the Project Owner/Investor to share data with Prestige and our Service Providers. Please read our Pricavy Policy for further details.

We ask you kindly not to copy ANY of our material unless stated. Regular checking is performed by the marketer as the information provided on all materials is copyright. Agreed permissions ONLY for the intent of using our business plan to get funding is accepted. Please ask for permission.