Loans are the most common solutions to finance a project. 

Depending on the type of project and its duration, specific terms have to be negotiated.

The projected cash flow will dictate the way the capital will be injected and the way the capital will be repaid.

The cash flow projections must to be carefully prepared and will have to be based on solid revenues and expenditures assumptions.

Loan guarantee

Any loan will have to be guaranteed by a collateral. In real estate and tourism projects, the collateral will be usually a property owned by the entrepreneur, but may be extended by other available assets. 

Due diligence costs

The property used as collateral will have to be appraised by a company specified by the lender. Other due diligence will also be performed by the lender's appointed party, and the costs of these operations will have to be on the borrower's account.

The lender will issue an initial intention to finance the project, but please have always in mind, that no lender will commit to a loan without having performed the necessary due diligence.

If you are not prepared to pay for the due diligence costs, you must not submit your loan application, as you, and all the parties, will be loosing time. This is true for any lender in any part of the world.

Due diligence costs will vary according to geographical location and project complexity. International loans have obviously higher due diligence costs than national or local loans.

Due diligence costs will have to be paid to the lender or directly to the performer agent appointed by the lender.

Our company will not receive any money or compensation related with due diligence costs. 

We are not neither a broker nor a financial intermediary. We act as the client's consultant, fully aware of the characteristics of the project, and support the entrepreneur against inappropriate finance terms, which could severely cut on the project rentability.

Our fees

We obey to a strict ethical code that doesn't allow us to charge anything outside the boundaries of our performed service. We do not charge any upfront fees.

Our client will have to pay only a success fee, at the time of the closing of the finance agreement.

The borrower must sign an agreement with our company stating the success fee to apply, and must also write a letter authorizing the lender to deduct that fee from the loan amount.

We charge a success fee that varies between 1% and 3% of the loan amount, depending on the size of the loan.

Documentation

If you intend to submit a loan application, some documentation will be necessary. That documentation varies according to the project characteristics and the type of loan.

You need to introduce your project, sending an executive summary with a short description on the most important aspects of the project, the amount of the loan and the way how loan proceeds will be invested.

If the executive summary has an initial good acceptance from a lender, be prepared to deliver a detailed business plan explaining the full project specifics.

You must also assemble all documentation regarding  the property ownership and the relevant approvals by the local or state authorities.

It will also be necessary that you present an updated report with the accounts of your company for the last three years.

Other types of real estate financing

Other simple or complex real estate financing structuring can be configured and submitted to our international finance relationships, to obtain the proposals that best fit the project needs.

Despite the fact that real estate is not usualy much attractive to Venture Capital, there are private investors , especially in USA, who are very active in this segment. We have access to international souces who can be contacted to judge about the potential interest on a new partnership.