Q. What is the Purpose of the Fee Payable to the Lender ?
1. Commitment by the Clients :- First and formost is to secure the which is the prime purpose of the fee, payment of it being a good discipline for the Client and Client.
2. Not to approach other funding sources :-
during the validity period of the Agreement with Clients company.
3. To fully co-cperate with Executives of the Company
4. To carry some minimum risk :- If the Client is fully committed to his project and believes in it.
Q. What does the Fee cover ?
1. Initial Due Diligence on the project by the executives of the Company.
2. Marketing and Presentation of the Project toFunders.
3. Liaison between the client and funder until successful closure.
4. Advising the Clients until successful Closure.
Q. Why do most funding Transactions Fail ?
1. Unviable Project.
2. Poor Documentation.
3. "Shop Solied" Projects.
4. Materials Facts :- Undiclosed or Misrepresented by the Client.
5. Clients' failure to meet the lendor requirments.
6. Unrealistic Expectations.
7. Failure to Agree to Terms.
8. "Shop Around" :- for better terms.
9. Circumvention.
10. Unforeseen Developments
(a) The Lender decides he has now
reached the limit of his exposure to the sector / country represented by the
project and will not therefore take the application any further, and
(b) Political,
Economic, Sectorial, and Technological Changes (PEST)
