I want to discuss my project with you, why can’t we set up a call?
We receive many proposals from potential clients. Unfortunately, there are not enough hours in the day to discuss each one. We ask all new clients to complete our online submission form with just the information we ask for in the first instance (please read the guidelines in front of the form carefully). This will give us all the information we need to know if and how we can assist. If we believe we can deliver funding, we will then come back and ask for your executive summary and move forward from that point. Calls will follow from that point on. We will also advise if we cannot assist.
Why should I pay any fees?
Despite all the frauds that have appeared along with the arrival of the internet (and the hordes of joker brokers and dreamers that came with it!), in the real world it has always been the case that genuine funders incur banking, legal, collateral, processing, due diligence, and other costs. They are not going to do that without a show of commitment from the client who could walk away from the transaction at any time leaving the funder liable for all costs. Would you? We will advise and present your proposition.
Most programs require a deposit or costs of some description to be covered, but only AFTER you have been made and accepted an offer of funding. Demanding that any deposit or cost is taken from the eventual funding simply tells us that you are inexperienced and do not expect to make any real monetary commitment to your project. Naturally, beware of any broker who wants a fee from you just for looking at your proposition or to present it to a funder.
But I’ve already spent money on my project – why should I pay more for the financing?
You may have bought your land, spent money on R&D or acquiring other assets in preparation for initiating your project. In the old days of traditional banking and loans, these might have been taken into account and considered a ‘deposit’ or ‘equity contribution’ towards your funding. But, even then, you might well have expected to cover other related costs. In the non-bank finance market, which is now the dominant form of project financing, your previous monetary commitment is a significant encouragement to the funder, but there are costs and charges involved in your financing towards which they still expect to see a contribution from the client. Also, despite what you have already spent so far, a funder could still turn down your application if they don’t believe your management team is up to the job.
Also, as with the previous question, there is nothing to stop you ‘shopping’ your deal and walking away at any time, leaving your funder with nothing but wasted time.
Why won't you tell me who the funder is going to be?
The reason that funders work through gatekeepers, such as Aon Capital Inc., is because they want to focus on doing financing rather than fielding enquiries from the many 'dreamers' that have overrun the market. In fact, these are the majority of submissions received by us and others in our field. At your initial enquiry stage it is people like us who act as the filter and, if we believe you are viable, shovel ready and prepared for serious transactions will present your proposition to what we believe will be a suitable funder.
Until you have been through that filter and the funder has had the opportunity to review your case, they prefer to keep their identity withheld. Sometimes they will deal only through their Lawyers and/or Accounting Firm to protect their identity.
Why won’t the funder provide references of previous transactions?
In this market, where private investors invest through their asset manager, hedge fund or other ‘wealth manager’, very often through proprietary structures, every deal is covered in confidentiality agreements. These are essentially ‘private’ transactions and any disclosure could see the hedge fund lose their investors or cause other problems. Genuine funders will either meet with you and show you evidence of completed deals or at least, you will draw comfort from knowing who you are dealing with. Some actually insist on meeting with you, at their offices, before you pay any deposit or costs at all.
Why can’t some funders provide proof of funds?
You will be dealing with funders who are managing vast sums of money on behalf of private investors and institutions. In some structures, the funds that are used for investment come from a number of different sources and are assembled through companies that, in themselves, cannot show the full amount of funding required. They simply receive the funds from their investors, structure the loan and then act as your loan provider.
Unfortunately, particularly with government entities involved in infrastructure, they still ask for proof of funds before ‘approving’ a funder. This is the reason why many social and economic infrastructure projects are held up in those less ‘enlightened’ jurisdictions, where those in government do not realize that the new non-bank structures can rarely provide the traditional ‘proof of funds’.
Other Funders will ask their Lawyers to show Proof of their Ability to Fund directly to your Lawyers, on a lawyer to lawyer communication. Again, this is to protect their identity.
Why won’t you sign my NDA?
Bearing in mind the number of submissions we receive it is impossible for us to review and sign client NDA’s. We have a standard NCNDA, based on the widely accepted ICC format, which we will ask you to sign if we move forward with your transaction.