1 I/We have a project, which needs funding. How do I/We submit a package to you? Please complete the enclosed application form and explain what type of financing you need (Equity and/or Debt) and the nature of your project (Start-up, Expansion, Real Estate, etc.) and we will review this initial request to get an idea of interest. We will determine our level of interest if any and we will contact you with further recommendations and/or instructions. You may send your Business Plan by e-mail when available, but this is not necessary at this early stage. It is our policy not to return Business plans nor sign Non-disclosure Agreements; in the event we decline a proposition e-mailed plans will be deleted, and hard copies will be shredded.
2 What should be included in a funding package? Other than the normally accepted documentation for loan/funding approval and acceptance, there may be additional information requests by a specific investor/funder at a later stage. This information varies; however, we will assist in all areas to insure that proper documentation is available to the funder for a swift reply.
3 How long will it take you to reply to my/our initial request?
Unless the request is unusual or complex, we will reply within 2 to 3 banking days.
4 Are you a Lender or Investor?
we are a firm that aligns businesses seeking capital to Investors with that capital. The real plus in working with us is that we already have our portfolio of the Lenders and Investors within our fraternity. We do not have to try and find the sources of funding.
5 I know many VC sources myself, why should I use Skyprops Finance Services? It's a fact that out of 1000 projects that VC Firms receive unsolicited and review (if they review) only 7 or less receive funding. It's not completely impossible, but it's almost hopeless to try to raise capital on your own ; one more reason to use Skyprops Finanace Services .
6 I receive similar propositions like yours from USA Companies that offer the same services, why should I use a source from South Africa or Europe ?
We have seen the documentation of most of these firms and many promise you “heaven”. We use the straightforward Dutch or South African way of promoting our business, without any fancy stuff, but we do what we promise and we hear and read not such positive reports regarding our USA competitors, although we're sure that there are various honest companies amongst these. FYI, there are actually several “Finance Companies” that stole our info (LUCO Inc. from NY and Business Capital, Patrick Damonse from South Africa among others, but some of them even forgot to remove the part of “Dutch Law”; can you imagine a foreign using Dutch Law?), so we should be flattered. If such a Company is unable to prepare their own FAQ's, how would they be able to arrange your financing? Further do we have much more European Investment contacts that our USA competitors - besides the many we have in the USA - which could also be an extra stimulant to opt for us.
7 Why do you require a retainer fee; why is it not possible that I pay upon closing?
The first years that we were in this business we didn't charge a penny and lost lots of money on behalf of our Clients. We had high expenses, which could not be recovered since many of our Clients turned out to be not too serious. Many of them never got their paperwork or Business Plan together and left it up to us to prepare a Business Plan from a bag of unsorted paper they sent us. Many applicants asked us to arrange a loan/venture capital, and after a while it happened regularly that they didn't send us adequate documentation, or they did not need the funds anymore, or their phone was disconnected, or they simply disappeared, but in the meantime we spent lots of time (an average of 150-200 hours on each project) and money on their behalf. Of course we don't say that you're not serious, but there's really no other way . Upon advice of our lawyers and accountant we now work on this basis, which is strictly according the Dutch law. In a nutshell: Professional Services are not for free . We put forth our best efforts; if anyone is not prepared to pay our retainer or wishes to go into negotiation regarding this matter, then please stop reading here , since we will not respond to requests to pay our retainer at closing .
8 Would you make an exception on your Retainer Fee, when I promise to pay a higher commission at closing?
We don't charge a retainer for Sale-Leaseback Finance and Factoring, as mentioned in our information. For the other services we expect a retainer to be paid to cover our basic expenses and time as explained above. There are no negotiations or exceptions. We do not accept stock in a company nor an extra "piece of the action" when a deal is successfully funded. We receive and review hundreds of executive summaries and/or business plans a month, and only have the capacity to process 3 to 4 a month, and prefer the viable projects of these clients that pay, over these trying to negotiate regarding this retainer. If you do not intend to pay for our services, then please re-consider your position and don't contact us , since we definitely will not reply, but delete such e-mails immediately and block your address.
What are the total costs? These costs vary, depending upon the project, method of financing used, etc. For Debt and Offshore Finance such costs will be spelled out in a transparent agreement by the Lender all ahead of time. For Venture/Equity Capital, many of the Institutions don't charge any further fees, thus – under most circumstances - the only cost you'd have if you opt for Venture/Equity/JV Partnership would be our retainer.
9 Why is it sometimes necessary to compose or edit our Business Plan?
The Business Plan you present is your most important tool when you need funding. Please bear in mind, you never get a second chance to make a first impression. The Business Plan we prepare or edit on your behalf will impress the prospective Investor and may make the difference between getting funded and not getting funded. This BP supplies all the information that an Investor ever needs to evaluate your proposal. It's easier to get immediate interest from an Investor when you provide them with everything they need, in the format they prefer.
10 I already have a complete and perfect Business Plan, why do you still need a retainer?
We would still have to spend the same 150-200 hours by calling, faxing and e-mailing various Investors as explained under #7.
11 How do you send my Executive Summary to the potential Investors?
We submit the Executive Summary to them by e-mail or on disk. For those lenders and investors that prefer hard copy documents, the Executive Summary will be prepared in book form. We transmit an Executive Summary to up to 500 international Lenders and Investors (if necessary) and up to 100 to Companies interested in a Joint Venture (if necessary) we have listed in our network. In addition Skyprops Finance Services will submit your funding request to any and all Lenders and Investors that have showed an initial interest (see Procedures #1). Others may not be part of our fraternity, but if they are legitimate we will deal with them. From our Fraternity of Lenders and Investors not every one will consider every deal, but there is absolutely no better way to present your funding request to as many potential funders as possible, besides the ones we have contact with.
12 Can I be of help to you during the Funding process?
Yes, first be very sure that you are prepared to proceed. We are very serious about all projects that are brought to us. Given that we put our best efforts into each funding request, you must be prepared to work with us in putting the information together that will achieve the results you require. We will request that you provide an Executive Summary, a full Business Plan and all further information that might be helpful.
13 Is it necessary that we meet with you?
No, there's no need for meetings , this is useless at this early stage. At a later stage Investors would possibly wish to meet with you, but this is not always necessary.
14 How long will it take to close?
Once a project/proposal is approved by an Institution, it depends entirely upon the speed in which the Client conforms to any additional requests for documentation from the Investor. This process can take as little as a few weeks for Offshore/Debt Finance to up to 45-90 days for Equity/Venture Capital, but often less then that.
15 Can you guarantee that my project will be funded?
No, nobody can – if someone does promise this, he's lying and only tries to cheat you - although w e will not knowingly participate with any Client, or in any project, we do not believe has a reasonable opportunity of being completed successfully. This determination is made and based upon Client representations and our own internal review and investigation of the facts.