Here is a high-level overview of the decision process we go through.
1- Meet and greet
In this phase we learn about your company and get to know you. We also discuss a high-level loan concept. This means we:
- Understand company and business model
- Meet management team
- Understand use of loan
- Agree a loan concept – how much, how, when
- Discuss high-level loan terms.
2- Term Sheet – 2-3 weeks
In this phase we issue, negotiate and sign a term sheet. In this phase we:
- Write a 3-6 page memo summarising the loan and the company
- Credit Committee 1- Present this to our credit committee, usually for one hour
- Issue a term sheet with all loan terms and conditions
- Agree the term sheet with you and sign it.
3- Due Diligence – 2-4 weeks
In this phase we spend time and money on internal and external due diligence to confirm the financial state of the company and use of the loan. This includes:
- External DD – standard financial DD with 2 day on-site visit
- Internal DD – customer and internal referencing, business model stress-test
- Legal documentation – standard loan documents, provided by our very experienced lawyer.
- Credit Committee 2- synthesise DD findings and present to our credit committee, usually for one hour.
The funding phase is immediate or as agreed with the lender.