CAPITAL INVESTMENT MODEL
1.
NDA Signed
2.
Business Planned Reviewed
3.
Funding
a.
Once the project is approved, we provide 100% of Project Finance – interest free
b.
We payout funds as needed per timeline, but not to exceed 20% per month
c.
First distribution is typically 60 days after receipt of plan to allow for due diligence
d.
This can be in as little as 30 days with sufficient documents
4.
Payback
a.
On a case-by-case basis
b.
Prefer to have full repayment within ten years after final distribution
5.
Grace Period
a.
Typically there is not any revenue for the first few years – so full grace period is permitted
b.
eg 3 years grace period and 7 years of payments
6.
Security
a.
We maintain 100% lien on the project or other suitable security.
b.
We maintain control over all bank accounts during buildout and until we are repaid.
7.
Costs
a.
Client pays 20% cash (Security Deposit) for the Investment
b.
(For larger projects – this can be done in stages/tranches).
c.
We can be provide a 25% Bank Guarantee to the client to cover any concerns
d.
This is returned to us after we invest 30% into the Project
e.
After final payback – we retain equity in the project, depending on risk/profit profile;
minimum 10%
8.
Options
a.
20% Security Deposit can be reduced/waived
i.
Then need 2% non-refundable DD fees
b.
Slower Payout rate and more equity is retained
c.
All terms are negotiable – but follow similar guidelines
CAPITAL INVESTMENT MODEL
1.
NDA Signed
2.
Business Planned Reviewed
3.
Funding
a.
Once the project is approved, we provide
100% of Project Finance – interest free
b.
We payout funds as needed per timeline,
but not to exceed 20% per month
c.
First distribution is typically 60 days after
receipt of plan to allow for due diligence
d.
This can be in as little as 30 days with
sufficient documents
4.
Payback
a.
On a case-by-case basis
b.
Prefer to have full repayment within ten
years after final distribution
5.
Grace Period
a.
Typically there is not any revenue for the
first few years – so full grace period is
permitted
b.
eg 3 years grace period and 7 years of
payments
6.
Security
a.
We maintain 100% lien on the project or
other suitable security.
b.
We maintain control over all bank accounts
during buildout and until we are repaid.
7.
Costs
a.
Client pays 20% cash (Security Deposit) for
the Investment
b.
(For larger projects – this can be done in
stages/tranches).
c.
We can be provide a 25% Bank Guarantee
to the client to cover any concerns
d.
This is returned to us after we invest 30%
into the Project
e.
After final payback – we retain equity in
the project, depending on risk/profit
profile; minimum 10%
8.
Options
a.
20% Security Deposit can be
reduced/waived
i.
Then need 2% non-refundable DD fees
b.
Slower Payout rate and more equity is
retained
c.
All terms are negotiable – but follow similar
guidelines
