It is our hope that our business relationship with you and your company will be a healthy and equitable relationship for many years.
Who is Global Project Financing Group and what do we do?
Trading Platforms in Layman’s Terms
FAQ’s
Who is Global Project Financing Group and what do we do?
In its earlier days, Global Project Financing Group and its Stategic Alliances were a contractor for major international banks and financial institutions. The main focus was doing the necessary background checks on a company’s standing, their management and application statements. Global Project Financing Group and its Stategic Alliances was the legally bound companies that banks could rely on to report clear, concise and accurate findings. They still offer this service today.
As this business grew, Global Project Financing Group saw a need for developing Fortune 500 business plans for emerging and expanding international companies. Since Global Project Financing Group was on the “inside loop” of major financial institutions, they saw what was required by the banks in the way of a business plan.
Financial institutions receive an over abundance of business plans. “Off the shelf” business plans, were usually just thrown away when first seen by potential lenders. Only those that “stood out” were entertained. Since the cost of doing the background on these business plans is expensive, most banks won’t entertain a business plan unless it is of Fortune 500 caliber.
Global Project Financing Group´s International Legal Services, PA was formed which allowed for businesses to compete in the Fortune 500 market that was previously closed to them. By editing, redesigning, and rebuilding a business plan, and certifying all documents, Global Project Financing Group is able to submit them to their partner banks and meet the criteria required. This is the first step in the funding process, and is a fee-based service. This is a very important step in obtaining funding.
Global Project Financing Group´s Capital Management, LLC was formed when Global Project Financing Group´s International Legal Services, PA saw a need for collateral backing. Many of the business plans that came to them for revision, simply did not meet the financial or collateral criteria that the banks would impose. Although they are great businesses, or good start up companies, competition is intense for the banks money.
Banks traditionally want to see a good asset ratio, to ensure they will be paid back. No matter how good the subject property is when finished, they simply do not want to have to own say “a resort in Belize, or a housing development in Nicaragua.” In the case of default, they have to put in management until sold, and possibly undersell and this cuts the banks profits.
To offset this problem, Global Project Financing Group´s Capital Management, LLC., entered into a trading platform, to increase their assets in order to collateral back a loan with a CD. This gave the bank a – 0 - risk factor. (**See #10 for CD collateral explanation in layman’s terms #11 for a layman’s explanation of trading.)
This makes Global Project Financing Group´s Capital Management, LLC., the FIRST INVESTOR on the project. If Global Project Financing Group takes the first step, through development of the business plan, and certifications, they believe in the project and will take the next step to back the project.
When backing is completed, Global Project Financing Group will either submit to their partner banks, or possibly in house fund with one of the banks they currently own. This is up to the discretion of Global Project Financing Group.
Global Project Financing Group´s Escrow Services, LLC was formed when it came to the attention of Global Project Financing Group and the international community, that some escrow services were only able to serve their general area and not the international markets. Since Global Project Financing Group is international in scope, it is necessary to handle the contractual needs of all countries, and financial institutions.
With it licenses in many countries and background in international law, Global Project Financing Group serves not only the international banks, but the businesses from foreign countries to ensure that compliance is met with respect to foreign laws on both sides.
Global Project Financing Group currently has several offices worldwide. At the time of this writing, offices are located in New York, Los Angeles, London, Panama, with central offices in Africa and Latin America planned in the next year.
Global Project Financing Group does not take in “off the street” inquiries. These offices are reserved for scheduled meetings with clients, financial institutions and our escrow team. When the proper time comes, the client will be asked to come to one of our offices to sign all documents to receive their funding.
Trading Platforms and How they Work
Virtually any bank in the world is working “behind the scenes” 24 hours per day, 7 days per week. During these “unscheduled work hours,” the bank is borrowing and trading paper.
Essentially, the bank is using money from other investment funds to strengthen its bottom line, thus giving it more borrowing power from the central banks. The more assets that a bank can show, the better rate they are able to negotiate in borrowing money to loan to customers or to purchase assets.
This money put into trading platforms by insurance companies, investment firms, and private individuals is set up to “roll” for a fixed period of time. For instance if Widget Insurance Company put in $100,000 for 30 days, the money would roll from one banks needs to another during this time. Like a snowball rolling downhill and gathering more snow, it gathers more each time a bank uses Widgets investment money.
The amount that is gathered is not fixed. It may only gather $20,000 for a couple of days, then nothing, then maybe $25,000 for several days, then another $20,000, so on and so on, until the trading period is up. It is a quick way to double your investment amount.
Securities advisors, with licensed credentials, set up trading platforms. Many times the funds of several companies are entered into one trading period. The money is then divided between all the individual investors according to the amount they put in. The larger a fund that you are able to join, the bigger amounts of money you can make.
There is no end to the amount of trading that can be done. The banks always need more assets and are willing to pay well for the use of investors money-even if they only use it for a day.
Global Project Financing Group´s Capital Management, LLC.,
Frequently Asked Questions (FAQ) for New Clients
FIRST INTRODUCTIONS
We Request an Introductory Meeting with Global Project Financing Group
It is our strict policy to allow meetings only AFTER receiving a fully completed and signed Application Form and Consulting Agreement, and after receiving Confirmation of the project by our funding sources. These decisions are driven solely by the facts and quality of documents presented, and not by any personal considerations.
Global Project Financing Group provides full written disclosure about our financing processes and mechanisms, and exactly how and why they work. We will send you a full package of information materials by e-mail. We ask you to review them attentively before requesting telephone consultation or submitting your Application.
Because of great demand for our services and a large volume of applications, it is impossible for us to allow meetings merely for acquaintance or introduction. We refuse to accept approximately 90% of all applications; so all related meetings would be for nothing. Financing requires intensive work on voluminous documents, and constant negotiations spanning many time zones. We have an obligation to our clients to give highest priority to delivering results on projects.
I Do Not Have Access to E-mail and Request a Meeting to Receive or Deliver Materials
Companies seeking international project financing for tens and hundreds of millions of dollars are expected and required to have e-mail access. All results of the Preparation process and documents for the Financing process will be only in electronic form. We will not schedule meetings with persons who are not equipped to conduct normal business or who will need us to verbally repeat information that is printed in our standard materials that we will send by e-mail.
Can You Discuss or Evaluate Whether Our Project Could be Funded?
Theoretically, all projects in all industries and countries can be financed, if they are professionally prepared to meet the criteria of funding sources.
Global Project Financing Group does not “guess” whether or not a project can be reliably funded – we let the funding sources decide themselves. If the project is confirmed by sources, then Global Project Financing Group issues a formal Confirmation Letter of Intent to Finance, containing the expected terms of financing as reported to us by the sources.
The only correct and effective way to evaluate the feasibility of funding a particular project is for you to complete and sign the Global Project Financing´s Application Form and Consulting Agreement, and allow us to perform the Confirmation Process with our funding sources.
What Amount of Capital Can Global Project Financing Group Finance?
Minimum – Global Project Financing Group can NOT obtain financing for any project less than $1.0 Million USD. That is our absolute minimum. Projects over $10.0 M USD are significantly easier for us to structure financing for.
Maximum – Our collateral providers have sufficient investment funds under their management to provide collateral instruments for projects of $10 Billion USD or more.
Start-up Capital – Our funding sources will NOT give “seed capital” to pay for any Preparation Costs, but can provide collateral to fund your project. The same amount of preparation work and expenses are required for any capital request regardless of type or size. For this reason, it is better for Global Project Financing Group to fully prepare your project for complete financing, for the same one-time fixed expense cost.
No Stages – Our funding sources will not finance only preliminary stages of a project because they have no guarantee that the remaining stages will receive funding from other sources. Global Project Financing Group must prepare and present all stages of your project together, to obtain the full amount of working capital needed.
What Guarantee Do We Have of Successful Funding?
As a result of all applicable laws, it is the Applicant company who must “guarantee” its own proposed project to the funding sources. Global Project Financing Group, LLC is all the more necessary as your international law firm, to certify and morally “guarantee” your project to the sources.
Global Project Financing Group guarantees full and timely delivery of the tangible results of the preparation process, for which the client pays only 50% of the real expense costs. We guarantee the quality of our own work, and that no matter how complicated the procurement process may get, we will continue active and intensive work, 100% on commission.
We stay with you all the way until final funding results, and never give up. Global Project Financing Group has enough resources that it is only a matter of time until you are funded and we earn our commission. We fully manage all aspects of the financing process.
If a funding source can not perform, we replace them. If a funding source does not approve the project, we work with others who can. We do not “look” for funding sources – we have them, and work together with them every day, starting with our Confirmation Process.
BEGINNING THE PROCESS
Do We Have to Pay Anything to Submit Our Application?
YES. GLOBAL PROJECT FINANCING charges a one time consulting fee of $2500. Preparing paperwork and submissions to lenders is labor intensive. We do a Confirmation Process, where we study the client’s preliminary materials, process the application, and discuss the project with a network of funding sources, to confirm whether it is realistic and reliable to finance the project. Many brokerage firms charge up to $20,000 for this same process. Global Project Financing maintains a strict policy of doing it for the $2,500 for the consulting fee.
We Plan to Submit Multiple Projects
If you are an agent, broker or consulting firm that plans to refer clients to Global Project Financing Group, then you will need to sign a Cooperation Agreement with before we can accept applications from you. Global Project Financing Group requires that all Applications be signed directly by the Applicant company that will actually apply for and receive the capital funding.
Can We Submit an Application for our Partner Company?
Global Project Financing Group requires that all Applications be signed directly by the Applicant company that will actually apply for and receive the capital funding, and requires direct relations with the Client during the course of our work. You can, however, function as a facilitator, or assist the partner company during the application process. On the Application Form, you should have the Client indicate your identity and contact information in the section “Corresponding Agent or Partner”.
We Need to Agree With a Strategic Partner Before Submitting the Application
It could be very helpful to submit the application first, and allow Global Project Financing Group to complete the Confirmation Process with our sources. In most cases, the formal Confirmation Letter of Intent to Finance, together with the CD Program report and other Global Project Financing Group´s information, is the best presentation to such partners. It shows strategic partners that the project already has the full support of an international law firm, that will manage the financing process.
We Want to Determine the Exact Loan Amount Before Submitting the Application
This is one of the end results of developing the business plan, not something that can be practically assessed at the beginning. Every dollar must be backed by our market research and financial analysis.
We will determine the exact amount of capital required for the project in great detail. Often as a result we discover that the client company did not consider several million dollars of needed expenses, and with client permission we add this amount. Usually clients are very happy with this result. Global Project Financing Group will take care of all of this for you after we begin active work, and we will make sure everything is correct.
Can You Advise Us on What Materials Are Needed Before Placing the Order for Services?
Yes. We have a list at our website, or our brokers can give you one. Not all items apply-this is a generic list. Please have on hand all items that may pertain to your project.
We Want to Add a Component to the Project Before Placing the Order for Services
It is very common for the company or project to add new opportunities during the course of our active work. Global Project Financing Group provides full support and direct assistance in adding new components or opportunities, at no extra cost.
Companies that try to wait for potential opportunities to materialize before starting often lose 3-6 months or more, during which time we could have already finished a full package ready to submit to lenders.
Can You Confirm Calculations of Repayment of the Loan
Before Placing the Order for Services
No. Showing cash flow and loan repayment is the end conclusion of the complex preparation process, and can not be the starting point. In order to answer this question for the funding sources, we apply many complex formulas and calculations, as we develop the advanced financial projections of your business plan.
PAYMENT OF COSTS AND COMMISSIONS
How Much Does it Cost for Global Project Financing to Manage our Financing?
It is most important to understand that the Preparation process is strictly separate from the subsequent Procurement process. Global Project Financing Group charges the client only a portion (approximately 50%) of the real and necessary expenses for the Preparation process, so we risk 50-50 together with the client. The Procurement process, which is even more expensive for us, is performed 100% on commission. (We can do this because the Confirmation Process allows us to determine the reliability of earning our commissions before accepting your project.)
Global Project Financing Group´s Full Preparation package is tangible work delivered to the client as material documents of independent commercial value. If you hire an international management consulting firm and an international law firm, this work usually costs $175,000. Global Project Financing Group does the same work, with improved results due to cooperation with funding sources and direct experience in financing.
Our maximum package for Full Preparation costs $50,000. If the client already has a professionally prepared business plan that contains most of the requirements, we provide a reduced Completion and Refinement package for $29,000. For companies or projects that qualify, Global Project Financing Group can obtain a government subsidy that will substantially reduce these costs. The type of package required and the availability of a subsidy is determined after receiving the application during the Confirmation Process.
Does the Cost Depend Upon the Size of the Project?
No. The Preparation costs are a fixed, one-time prepayment of the client’s share of the necessary expenses. In reality, the same amount of preparation is required for a project of any size, so Global Project Financing Group will not artificially inflate the preliminary expenses for preparing large projects.
In many cases, one project can have multiple components, or be implemented in multiple locations within one country. If the funding sources agree to integrate multiple components into one single package, then the standard fixed prepayment will be the same as for only the original basic project.
Can We Pay Preparation Costs in Parts or Stages?
No. The fixed payment for preparation costs is for real expenses of performing the work, and most of it is paid to consulting experts who must be paid up front. Work can not begin until the preparation costs are paid.
Can Global Project Financing Group Conduct the Preparation Process Without Prepayment?
No. In accordance with traditional rules of funding sources, Global Project Financing Group is prohibited from preparing an investment project without any prepayment, for deferred increased payment upon funding, or in exchange for becoming a partner or shareholder in the business.
Violation of these rules would cause Global Project Financing Group to lose all independence and credibility, and lose our weight as the underwriting law firm certifying your project. In that case, we would have to stand together with you in line at another brokerage firm, as a co-applicant, and ask them to help finance your project.
The tangible preparation work delivered by Global Project Financing Group is Fortune 500 quality materials, with independent commercial value, and a market price of $175,000. Many clients have used our work to successfully obtain financing on their own. We will not do this work without at least some “good faith” payment of the client’s share of real costs.
Global Project Financing Group asks clients to pay only 50% of the real expense costs of necessary preparation work, paying the remainder ourselves. We therefore risk 50-50 together with the client. Furthermore, we pay for even more expenses during the procurement process, which we perform 100% on commission. If a client is not willing to pay their fair share of initial costs, then we do not want to work with them.
Can Global Project Financing Group’s Investors Pay for Our Preparation Costs?
No. Our funding sources will NOT pay for Preparation Costs to help you develop your project for their potential consideration. If you are not ready, then they will not consider any application. They accept only fully and expertly prepared packages of documents for any capital request regardless of type or size. Global Project Financing Group, however, CAN arrange for a government subsidy to pay for some, but not all, of the necessary preliminary Preparation costs.
What If a Partner Company Will Pay the Preparation Costs for Us?
It is a standard practice for a strategic partner to pay the preparation costs for the applicant company. In this case, on the Application Form, please indicate the company that will apply for and receive capital funding under the section “Applicant Company”, and indicate the company that will pay for the preparation work under the section “Ordering Company”.
As a law firm, Global Project Financing Group is permitted to accept payment from a third party, but is obligated under our license to provide professional services exclusively in the interests and for the benefit of the applicant company as the Client.
What is Global Project Financing Group’s Success Fee Commission?
The standard commission for successful financing by Global Project Financing Group is 7.2% of the amount of working capital actually received by the Client, paid from the funding procured. This is a one-time fixed fee. It is not in any way related to the interest rate on the loan. The amount of our commission is added to the business plan as “Legal and professional fees” for the first year, so that Global Project Financing Group is paid from the loan amount, and the Client receives 100% of the working capital required for the project.
We Heard of A Broker or Firm With a Lower Commission
Global Project Financing Group maintains a strict policy of charging our commission of 7.2%% only from the working capital actually received for the project. Be aware that many financial companies that claim to have lower commissions actually charge commission on the amount of the loan from the bank, which is often doubled or tripled to accommodate structuring of third party collateral. So a commission that appears to be only 3.5% can easily become 7.0% or even 10.5% of the capital you will receive.
DELIVERABLE RESULTS OF WORK
Why do We Need Additional Preparation Work?
To funding sources, the project itself consists only of the documents that represent it. They can not see what will be built in the future, or what will happen during implementation of the project in the future. Accordingly, what they actually fund is the package of documents. The winning formula for reliable funding is a solid package of documents expertly prepared in accordance with the rules, criteria and requirements of the sources.
Doing your own preparation often gives acceptable results in your local area for start-up capital, but local banks and investors have limited funds. Reliable funding results require taking your business to more and larger funding sources on international capital markets. For this purpose, it is necessary to conduct expert preparation, producing a Fortune 500 caliber business plan and legal due diligence package, with commentary by an international law firm, for use by the lenders.
Can We Use the Business Plan With Our Own Investors?
Yes. Our services contract specifies that our financing process is non-exclusive, and clients have the right to approach other sources using our materials, and Global Project Financing Group is obligated to assist and support them in working with other lenders they may find.
Under international copyright law, the business plan and legal due diligence package is a “work for hire”; owned by the client, as if they developed it themselves. Many Global Project Financing Group´s clients received funding by using Global Project Financing Group work with their own sources.
What if the Business Plan Needs to be Modified for a
Different Funding Program or Additional Component?
The services contract with Global Project Financing Group provides for re-writes, updates and modifications to the business plan as needed, at no extra cost to the client. Sources allow to re-submit updated versions or supplements at any time.
Just be aware that working with Global Project Financing Group is NOT a “one shot deal” - we stay with you and actively support you throughout the entire process. Anything that develops we will use, package and present in the correct way.
TIME PERIOD FOR FUNDING
How Long Does it Take Until We Receive the Capital Funding?
The total time period from Global Project Financing Group beginning work to funding is usually between 3 – 9 months, with an average of approximately 6 months.
Global Project Financing Group commits to completing its own preparation work within 2-3 months. Clients who can be slow to respond to our requests cause sometimes delays. Everything else depends upon how long the lending banks themselves need to review the applications and make a decision, which is impossible to predict. It can depend on the time of year (whether there are legal holidays or vacation seasons, or seasons when they get large volumes of applications), or the complexity of the project.
Can You Give a Detailed Break-Down of the Time Periods by Stages?
No. International project financing is a comprehensive and multilevel process that involves many key participants, and cannot be performed on a fixed schedule. Every project is unique, and every collateral provider and funding source is different.
We Need Investment Urgently
We work extremely hard to represent your interests and actively move the process forward, but there is nothing we can do to make the banks work faster. If your project is “urgent” and risks falling apart, then will not accept your project. We strongly recommend that you agree with your partners in such a way as to allow maximum time and flexibility for the banks to do their work.
It is not realistic to expect funding sources to make a decision about lending tens or hundreds of millions of dollars overnight. The banks perceive any pressure or “rushing” as a red flag that the project may be falling apart or is otherwise “on fire”, and then may decline the project.
Can You Obtain Results Faster? Average 6 Months is Not Fast Enough
We can accelerate our own Preparation work, completing it in about half the usual time, and this requires only an additional payment of 20% of the standard costs of preparation work. If you are in a hurry to obtain financing for competitive reasons, and there is NOT a risk of the project falling apart, then Global Project Financing Group can agree to this accelerated work.
The Global Project Financing Group process, averaging only 6 months, is the fastest possible because we integrate and centrally manage all aspects of the financing transaction. (Statistically, clients search for funding on their own for 2-3 years, and brokerage firms search for funding for 1-2 years.)
If you want a faster result, the only solution is to begin working with Global Project Financing Group without delay. The sooner we start, the sooner you will get results.
BAD EXPERIENCES WITH OTHER BROKERAGE FIRMS
We Lost Money Before With Brokers Who Did Not Obtain Results. How Does That Happen?
Most brokerage firms charge up-front fees just for “consulting” or “applications”. They do not add anything or contribute any real work to the process. Nobody is responsible for monitoring or managing the process. Accordingly they have a low success rate.
Global Project Financing Group charges fees ONLY for specific work which must be done to prepare the project to comply with all known lender rules, and ONLY for work of independent commercial value that will be delivered to the client.
We Never Pay Anything to Middle-men or Brokers
Global Project Financing Group, as an international law firm, fully manages all aspects of the Preparation process, Procurement process and Funding process, from beginning to end, we represent the client as their law firm, acting in their interests and for their benefit, working directly with the funding sources. We do much more than brokers do, 100% on commission, and we ask the client to pay only 50% of the actual expense costs of the necessary Preparation process that brokers can not provide.
COLLATERAL STRUCTURE OR PROGRAM
Can We Use Property in Our Country as Collateral?
Funding sources are generally not interested in any property that is located in a foreign country. That requires $100,000-$200,000 of work of an international law firm to register the collateral rights, and the source will require the client to pay such costs. Global Project Financing Group works to avoid such costs, using more effective methods. We procure collateral from our own third party collateral providers, which is paid for from the final funding package.
Can We Offer Property that Will Be Purchased or Constructed for the Project as Collateral?
Funding sources do not have any guarantee that the project will be implemented and the intended collateral purchased or constructed. Global Project Financing Group will procure third party collateral in the form of an international financial instrument, purchased by an established network of investors. We will then structure that into your financing package, so that collateral is paid for from the funding capital.
We Heard About Another CD Program, or That it Does Not Work
A CD (Certificate of Deposit) is merely a financial instrument that is backed by cash, and is freely transferable. The general structure of using a CD as a collateral instrument has existed for 50 years. Naturally, there are many firms and brokers who have used CD instruments as collateral in one way or another.
Global Project Financing Group is the Program Manager for the CD Program that we operate. The particular groups of collateral providers and their investors who we work with have specialized in this system for 25 years. Our economic security division has already investigated and determined specific reasons why certain other programs have not worked, and our capital division worked intensively with the legal departments of several national banks to avoid common mistakes, and developed highly effective strategies approved by lenders.
There are 3 common reasons why another program might not work: (1) they buy the CD first, and then look for a lender who will accept it, and each lender has different technical requirements for the specifications of the CD; (2) they do not use lawyers or experts who are qualified to properly explain to the lender how to correctly use the collateral instrument, so the lender can not move forward; (3) the firm provides collateral only and does not provide services for working with lenders.
Global Project Financing Group has the advantage of true structuring, to avoid all known common mistakes: (1) the lender first confirms what specifications of the CD they want to accept, and only then the instrument is purchased at the time of funding; (2) we fully manage and coordinate all aspects of the transaction as an international law firm, effectively communicating with the banks; (3) we operate a fully developed brokerage division for constantly expanding our network of lenders.