Frequently Asked Questions             

Within the following material, we will try to answer most common questions raised by borrowers. Anyhow, we will be pleased to an answer any question raised by a borrower to cover all aspects of this business and make all matters clear to everybody.

1)     Who you are?

We are an international consulting firm with extensive expertise specializing in providing suitable business and finance solutions to clients worldwide. We are mainly engaged in the business of securing suitable funding solutions, both equity and debt, to projects which are legal and are in accordance with the laws of the countries involved.

2)     When you were established?

1992

3)     What types of projects you can handle?

Since we are working actively with a large number of lending sources like banks, investment companies, venture capital, pension funds, insurance companies and private investors, we are able to serve almost all types of projects which are well structured.

4)     What types of collateral a lender will accept?

There is no limit to the kind of collateral a borrower can offer in order to secure a loan. The collateral varies according to the industry of the project and with the willingness of the lender to accept the proposed collateral. The collateral value should cover the loan amount, interest amount, administrative and legal fees.

5)     In which currencies loans can be made?

Usually we arrange finance facilities in three major currencies, US Dollars, Euro and British Pounds. In some cases other currencies can be made available for the borrower.

6)     How long it will take you to respond a borrower?

Usually, we will respond within 2 to 3 working days.

7)     How the business plan should be structured?

The business plan should be prepared in English and must include information which meets the acceptable industry standards including but not limited to the Executive Summary, detailed description of the project, detailed information on the product, analysis of the market, project loan requirements and proforma project costs, anticipated 5 years profits, project management team, outside contractors including past experience, key personal and advisors and company financial statements if available.

8)     Who is qualified to apply for a loan?

Loans are available to all who need capital including small entrepreneurs, new and growing companies, small, medium and major corporations. Capital is available for all types of legal and commercial purposes.

9)     For how long a loan can be made?

A loan can be made up to 20 years with the possibility of a 5 years extension based on a mutual agreement between lender and borrower.

10)   What are the lender's charges?

Usually a lender will charge between 0,5% and 2,5% fee which will be deducted from the loan funds at closing. This fee is set to cover the lender's legal and administrative expenses incurred while processing the loan transaction.

11)   What are the expenses to be paid before closing?

All costs, charges and expenses reasonably incurred while processing the loan application transaction should be covered by the borrower. Borrower shall cover the cost of the due diligence a lender will have to carry out in order to verify that all documents and information supplied by the borrower are correct and the project is viable. Beside the due diligence cost, borrower will have to pay us a processing fee which will be paid to us through an escrow account at the time we obtain the lender's initial loan approval.

12)   What is the ''due diligence''?

The due diligence is usually a process structured to gather the critical facts and descriptive information regarding a project seeking capital. During this process the lender will validate all documents and information submitted by borrower before final loan approval and loan closing.

13) What are the maximum & minimum amounts you can handle?

We can handle transactions starting from as minimum as US Dollars 1 million and up, without limits. In some cases smaller amounts can be considered but on case by case basis. Trade finance can start from very small amounts.

14)  How the interest rate is determined?

The interest rate is subject to the currency involved, loan period and the general rating assessed on the borrower and security that is being tendered. Such rates are being calculated either on an agreed percentage over the interbank or prime rates or alternatively on a fixed rate throughout the period of the loan.

15)  What are the terms for interest & principle repayment?

The interest payment can be made quarterly, semi-annually or annually. As far as the principle amount is concerned, the principle amount can be paid with or without amortization payments during the period of the loan or on maturity. A reasonable grace period for the repayment of the borrowed capital can be granted if justified.

Frequently Asked Questions - Application Procedures Stages

The following are the general procedures followed in processing a finance facility request.

Stage 1

Borrower should submit an executive summary, which should contain as much information as possible concerning the project and the proposed collateral. This summary should be within 3 to 4 pages. Alternatively, the borrower can complete our application form which we do prefer.

Stage 2

After our receipt of the initial project details, we will review carefully the submitted details and should we determine the viability of the project, we will express our interest in the project. We will issue a Letter of Intent expressing our interest together with our working terms.

Stage 3

Upon the borrower's acceptance to our Letter of Intent, we will issue our Letter of Offer, which will be more comprehensive.

Stage 4

Upon our client’s acceptance to the Letter of Offer, the client will have to supply us with all available information and documents of the proposed finance transaction for our underwriting process of the formal loan application. A Letter of Authorization from our client will be required. All these documents should be sent by express courier in hard copies together with a copy on a CD.

Stage 5

As soon as we receive the above-mentioned material, we will immediately start underwriting the loan application. Up-to-date notification will be send to the client regarding the progress of his transaction to keep him informed with all developments undergoing.

Stage 6

Whenever a Funding Offer is submitted to us, the client will be notified. As per our client direction, we can visit him at his office, or he can visit us or we can meet in any place to discuss this offer. Should the client decide to accept the offer, we will handle the processing procedure for this matter.

 

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Samer Nassar & Associates