Funding Arrangement Procedures:
INTERNATIONAL LOAN WITH STOCK ASSETS
GUARANTEE OUTSIDE OF THE UNITED STATES AND CANADA.
- Send SSCB a project Feasibility Study/Business
Plan in its ORIGINAL, HARD COPY format, Xerox copy is not acceptable.
- SSCB will present financial instructions after
payment of a reasonable Engagement Fee.
- Project feasibility study and/or Business Plan
must be written by professional consultant firm specialized in the
type of project for which funding is being requested. A Feasibility
study written unprofessionally may run the risk of the funding being
denied by a lending bank.
- Upon receipt of Borrower's Complete Documentation
(which SSCB shall help to prepare), the investment group will make
its loan decision between five (5) and fourteen (14) days maximum
after being satisfied with a due diligence process on the project
and the borrower.
- Upon positive due diligence result, the investors
will issue its letter of acceptance of the loan request, specifying
terms and conditions it would like to proceed. Said terms and conditions
include interest rates, loan period, and what types of securities
such as bank or insurance guarantees, and the possibility of using
project itself as security, etc.
- The investor issues its invitation to the borrower
for a visit to their institution or organiation to go over terms
and conditions, and sign loan contracts, pay order, non-circumvention,
and non-disclosure agreement, etc.
- The investors, on receipt of the required collateral
releases the loan fund to the borrower after deducting its fee.
SSCB's Success Fee varies depending on the loan size, and the degree
of complexity of the funding process. This Success Fee will be deducted
by the lending institution from loan proceeds, payable to SSCB upon
loan closing. Balance after said deduction is immediately transferred
to borrower's bank account based on terms of the loan agreement
signed between the borrower and the lending institution.
- If following the due diligence process on the
project and the borrower, the project is found to be insolvent,
the loan would be denied. Therefore, before submitting his project
for funding arrangement, the borrower must first be sure himself
that his project is solvent enough to pay back the loan principal
and payment of annual interest.
The above bank procedure must be strictly
followed through without any deviation.
INTERNATIONAL LOAN WITHOUT THE USE OF BANK GUARANTEE.
For Developing Countries:
For
many years past, we have seen numerous projects having good merits
with great future, but failed to get them funded due to lack of
access to Bank Guarantees to back up their borrowing, so they could
not be funded.
To help remove this difficulty in the Bank Guarantee issue, STRASBOURG
SOVEREIGN CONSULTANT BANKERS has been successful in negotiating
with top-notch world-class lender groups to drop the bank guarantee
requirement, and fund projects based on their merits. A chosen number
of lender groups can now accept good, viable projects in Infrastructure,
Industrial, Manufacturing, Agribusiness, and Financial (banks, leasing
companies) sectors of Developing Countries having the following
merits:
- that
they are potentially economically sound and technically viable
complying with strict environmental guidelines, and
- that
they are from private sectors in Developing Countries
Funds
are provided by lender groups to support start-up of new projects,
and/or expansion, modernization of established ones.
Loan term up to 12 years, ranging in amount from US$5,000,000 (Five
Million USD) and up.
The removal of Bank Guarantee requirement is a convenience to project
sponsors (borrowers), but it also creates certain risks for lender
groups in the safety of their money. For this reason, projects submitted
for loan consideration are carefully evaluated as to their feasibility.
Therefore, project documents must be prepared in an absolutely professional
manner to the satisfaction of the lender groups.
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