益通金融 - 益通首页

     Funding and the applicant has to be able to show adequate measures taken to minimize that risk. We understand that total elimination of risk is rarely achieved.....
     To get a project loan approved for business is no longer a simple process. Payment problems have risen to such a point that banks and other lenders are now more critical than ever when it comes to collateral requirements.
    Over the years, project funding has become increasingly more complicated and time consuming.
       The need now exists for complex agreements, stepped interest tiers, substantial equity, and collateral guarantees.
       The changing environment has been brought about by, in part the tremendous worldwide economic growth, the expansion of ecnomies and privatization of government-owned projects. The increase in demand for project funding has led to ever increasing lender erquirements for principal repayment guarantees.
       Lenders and investors alike are no longer comfortable with only co-signors,
Pledged collateral, and third party guarantees. Financial Institutuion wants the assurance of a guaranteed principal repayment at the end of the loan term.
       This assurance can take many forms, the prrchase of an insurance annuity, and assignment of cash flows, increased equity; equity participation and principal repayment guarantee facilities. In a study of rejected loan applications, the vast majority failed to include a form of guarantee for the principla payment. The loan officer’s often ask a question “how can our institution be assured off payment towards the principal we have advanced?”

       FINANCIAL RISK

       You may have developed a project package and are ready to set the project in motion. Suddenly, you cannot get the necessary funds to move forward. Financial institutions may give all sorts of reasons why they are unwilling to fund the project at this stage of commonly may make a preliminary offer of credit on fully secured basis. In other words, Financial Institutions is not willing to take all the risk. The bottom line is that the Financial Institutions lacks the confidence that the project will be abled to meet the dual requirements of principal repayment and interest service.

       HOW IT WORKS.

       How it can work for you is the concept is actually quite sumple. The Financial Institutions, upon looking at the borrower’s assets and earnings, doesn’t feel completely assure that the borrower can pay off the loan when it becomes due.
       Any financial Institutions will first looks at the size of the request, the amount of equity offered, the project, its financial risk/reward to determine if it fits within their quidelines. Then most likely, the Financial Institutions will require third party
       Endorsements and / or collateral assignments. The third party provides the Financial Institutions with assurance that the borrower and project will meet the repayment terms.
       Banks, and Governments for that matter, have been providing similar guarantees for many years to eliminate the perception of risk. For example, the bank,s Irrevocable letter of Credit and Standby Letter of Credit as well as Bank Guarantees are instruments that support a wide variety of ebt. By using a similar approach and applying it to project funding, a major perceived risk has been eliminated.
       The quarantor - usually a bank/ Insurance Company or other financial institution issues a Guarantee, in effect promising to repay the loan at maturity ever in the event that the borrower defaults. How does the guarantor secure its payment?
       Usually by having the lender advance an additional amount to be transferred to the guarantor, where it will earn and compound to the total principal amount over the term of the loan, thus assuring the lender of repayments at maturity. Imagine if you were a businessman looking for the funds to take your business of the ground, and you had the Commitment in your hand. Financial Institutions would feel much more secure about your loan proposal, knowing that someone is willing to back you up. You willalso feel secure, Knowing that there’s money available to pay off the loan. And best of the project package must be available.
       This document is required in making the determination of our willingness to recommend the project for full underwriting review.
      Because all international finance is documented in English, a current English
      Version will be requested before the underwriting process can commence.
     When we are assigned to the project and are able to make a recommendation “that the project could benefit with a fully collateralized guarantee,” The underwriters then take a maximum of forty-five(45) days in which to complete their review and analysis and issue their Commitment in favor of the Financial Institutions and the project owner. This document will contain all the details of the expected credit-enhancement facility and the full and complete terms and conditons. Success in today’s increasingly compettive and often unpredictable world of business depends lardely on the formulation of creative business strategies especially in the search for capital.
       When a business seeking financing submits a business plan to a qualified lender, the lender has certain expectations of the proposal: inherent financial strength and quality of the managemetnt system. Failure to meet the llender’s expectations in either case wills more than likely result in a declination of funding.
       Through our Associates we search out and utilize the best guarantee service facilities available. Our goal is to understand the clients business needs and to thereby assist in indentifying realistic financial objectives.
In our work, we must maintain confidentiality in order to protect each client and enhance the prtential for their success. In order to determine whether the project has sufficient potential to be financed, we need the facts. An official letter of request (appendix A) for funding, and a Summary must be submitted by the applicant.