To Our Valued
Clients
View What We Really Do.
View Why You Get Far More Than Your Monies Worth
View The Refund Policy
View Why Everybody Who Does Not Get Funded Should Review
Their Own Project Before They Criticize The lender Who Tries To Help Them. Yes
For Profit, But We Make More Money If Wee fund Your Project.
Clients agreed, with the
process shown below. Clients signed the paperwork of the process shown below.
Clients who need their memories refreshed, about what we promised to
do.
The
client either comes directly or the project is brought by a broker to our
offices. The project is then discussed to establish if it warrants going further
by putting a conference call together. During the conference call the
information gathered comes from the client offering a full and clear
presentation in their words and not from a business plan. At the end of this
conversation we ask for a day or two to look into the industry and possibly a
bit of client background, and after if there was interest in taking the project
on based on the possibility that there was potential funding available the
client is advised of this and advised of our desire to take the project on and
the process would began.
Now
the engagement process takes place. All documents are issued, including a letter
of understanding, letter of engagement invoice for the due diligence fee copy of
the refund policy and cover letter. The payment of the due diligence fee is
requested and we begin. Once the signed letter of engagement, signed letter of
understanding and the due diligence fee has been paid then it is at this point
that a file is opened and additional information is requested including personal
financial statements, business plans, executive summaries, financial statements,
proforma forecasts, architectural drawings, photographs, and any pertinent
business related information.
Prospexx Integrated
Capital (PIC) Studies the information provided, any information not understood
or missing, questions are compiled, discrepancies are noted, and the project is
then passed along to the due diligence department. The due diligence department
has a two part job to do. Full background investigations are performed on
principles, criminal background, civil actions and suits pending, settled or
that has been registered with the courts and financial checks that may have an
impact on the project as personal background checks.
The education and
employment histories are verified. When any questions come up regarding any of
the above points, either yourself direct or your broker or agent is contacted
and is expected to discuss these matters with you. Then all of the new or
corrected information is entered into the due diligence report.
It is at this time the
other members of the team see the project. Primarily that is those able to study
the spreadsheets and pro-forma’s to analysis the project and will provide their
opinion about whether the project will perform as per the statements made in
the business plan or executive summery. It is at this time that we often see
extremely exaggerated points and inaccurate information and we begin to get the
feeling for the integrity of the client. If they will provide inaccurate
information to try to obtain the money we don’t question that we will be
provided with inaccurate information when a loan has been put into place. It is
made note of if we feel if the client has misrepresented anything.
The second part of the
due diligence work is the preparation of reports for our inside and outside
investors. The major report is called the SWOT report referring to Strengths,
Weakness, and Opportunities Threats. It may, or may not be complimentary to your
business, but it is compiled from supplied information, information mainly
supplied by you the client, and industry information. The SWOT Report is
prepared by business experts, sub contracted by Prospexx Integrated Capital to
guarantee impartiality. All of the information gathered is put into an
understandable format, to be presented to the investors. That format is complete
when all aspects of the project have been thoroughly checked.
At this point if we feel
it is important enough to bring the client in to discuss the results of the due
diligence investigation and/ or to discuss any serious points in the SWOT
Report, this is done. If there are any serious discrepancies at this time they
are discussed with the client.
The SWOT and due
diligence information is considered to be very confidential and is not provided
to anybody for an argument. The SWOT report is viewed by investors only after
confidentiality agreements are signed and due diligence information is complete.
All information we feel
the lenders and investors should be provided with is put in place at this time.
Obviously there are specific types of projects that will be looked at by
investors, and there are other investors that do not work on that type of
project. The most likely investors for your project will see the information
first.
We then have ongoing
discussions with the lenders and investors of which I am one and decide where
the project will go from here. The process takes place weekly and used to take
6-8 weeks. But in today’s economic time the reality can be 6 months or more of
working with investors to get to the point of a decision. In many cases we
decide to take the project to our small group of outside investors if we are
having a difficult time making a decision. That in itself adds more
time.
When a
lender/investor/group has made a decision that a project is potentially able to
be funded the terms the lender would like to see in the project are provided to
the client for review. If those terms are acceptable they are returned to the
investor unmodified. If there is anything the client wishes to negotiate then it
is done at this time. Then the contract and verification of all proceeds being
available is put together. Because most projects have more than one investor it
is a negotiated issue amongst the investors associated with the project for how
much money.
When a contract is
provided it means all monies have been put into one holding account usually
belonging to one investor. The final contract is signed and funds are dispersed.
When a positive decision
to fund has been made by Prospexx Integrated Capital we will indicate to you the
terms at which we wish to move forward. Sometimes this may not be what was
original discussed or what is expected by the client. At this point the terms
can be negotiated. Following this will be a contract and administrative terms.
No project is considered funded until contracts are signed.
The degree of risk of a
project is what determines its likelihood of funding. Risk is not fixed. Risk is
based on may variables such as the market the project is in, the financial
position of the client. An example of changing risk is projects in the real
estate industry brought to pic e8 months previously. They may have looked very
good and low risk at the time but because of the economy they now are very high
risk projects and likely not to be funded by anyone. We may have looked at these
projects in appositive light but the times have changed affecting the risk.
Lenders who were enthused originally lose that enthusiasm when they see the
market beginning to come apart.
If a project is declined
during the time the investors are negotiating and producing the contract,
because of the degree of risk, or if the project loses the level of interest
that is necessary for it, then we ask the client to allow us to take the project
“to the street”. That means we can place your projects in front of very large
number of legitimate lenders and investors. Their interest in a project will be
immediately made aware to you, because the investor or our firm will contact you
directly. The outside investor will notify Prospexx Integrated Capital of their
interest. That in itself helps as we may be interested in partial funding, but
not the whole thing. Also this guarantees that the brokers are protected because
we will know what investor is working with you, to fund your project.
With some of our most
recent projects, we have kept them open longer that we should have. This is
mainly to try and fund projects that are being discounted because of the current
economic times. Some projects not being funded are not the fault of the quality
of the project, nor the fault of Prospexx Integrated Capital, but are the
results of these current economic times. It appears in some ways that things
are turning around, and some projects that were scheduled to be declined, may
just have been given a second wind. We can discuss that with you to see what we
might be able to do. Our job is to do our best to fund.
Something that has come
about recently is the clients have been asking for the due diligence fee to be
returned to them. This is not our usual protocol.. We offer a legitimate
service. We have a refund policy and we will gladly honour that policy. When a
project is not funded, it certainly is not because of something our firm did or
did not do. We have gone to the limit of what we are capable of, to fund your
project. If we are wrong and you do obtain funding in the same manner as your
project was brought to us, we will gladly honour our guarantee. We are very
thorough. If your project is not funded through the work of Prospexx Integrated
Capital, we will do everything possible to assist you in any other opportunity
available to fund. You must remember, we do not work in a fee for funding
scheme. We do not make any promises. The project itself and the quality of the
presentation are there in every case. If not funded, it is not the presentation
nor the lack of understanding from our investors that are the reason for the
lack of success. That is why our refund policy stands strong.
We hope this information
has been helpful to you. If you have a project that has not been taken to our
outside investors, regardless of when the project was first brought to us, your
project will be presented to every one of the hundreds of outside investors that
we have compiled if you just ask. Our aim is to fund every project we take in,
unfortunately that cannot be done, but anything we can do to see your project
funded will be done. We wish we could fund every project, but that is not
possible. We have and will continue to deal with all reasonable
requests.
Tom
McKenzie
Refund Policy
Prospexx Integrated Capital will refund any and all fees
paid by a client to Prospexx Integrated Capital , that can verify the funding
request was actually accepted and provided from another source. The actual
amount requested and provided must be the same, and the type of transaction must
be identical to the request presented to Prospexx Integrated Capital . The
transaction must have taken place and documentation must be provided.
Why is this refund
offered?
Prospexx Integrated Capital feels that we go to the limit
to try and provide the capital a client is in need of. If we have done all we
can and you still do not have your capital, we feel there is little else that
can be done. If we are wrong, and your capital is found at a source other than
Prospexx Integrated Capital , any fees paid to Prospexx Integrated Capital
will be cheerfully refunded. To put it simply, "shame on us if another fund
source is able to a better job than we are able to".
This refund will be provided only when Prospexx Integrated
Capital is satisfied the client actually received their funding Statements
such as "well they said they would lend us the money", do not represent the
actual transaction taking place, and no refunds will be issued other than as
shown above.
Letter Of Understanding
Signed By Every Client Before They Engaged Our Services Or Paid Any
Fees.
- I am aware that Prospexx
Integrated Capital will provide a best efforts attempt to provide the funding
required.
- I authorize Prospexx
Integrated Capital to do all necessary credit and background investigations
involved in their due diligence work.
- I am aware that I am
working directly with lenders and investors capable of securing the funding I am
requesting.
- I am aware that no term
sheets, interest amounts, principal amounts, and time frames can be contracted
until the due diligence procedure has been completed.
- I am aware that the
procedure of securing financing can take up to six (6) weeks before funding is
provided.
- I agree that any fees
paid to the above company, is for the work that is being done to make potential
capital available. I know that due diligence fees are to be considered to have
been earned at the time of payment.
- I agree that Prospexx
Integrated Capital offers no guarantees of funding and shall be held
harmless, should financing not be able to be provided by Prospexx Integrated
Capital .
- I am aware that Prospexx
Integrated Capital offers no refunds of any fees paid except as stated in the
refund policy (copy on website www.barrettcapital.ca). All fees are considered
earned at the time of payment.
- I am aware that my
funding request will be brought to Prospexx Integrated Capital inside investors,
and to the outside investors directly associated with Prospexx Integrated
Capital.
- I am aware that this loan
and/or equity investment request is made by my commercial company or
organization. I understand that Prospexx Integrated Capital does not lend or
provide capital to private individuals. Corporate transactions only.
- I understand that
Prospexx Integrated Capital will, under no circumstances, operate as a mortgage
broker.
- I understand that
Prospexx Integrated Capital does not operate a loan for fee type of scheme. The
amount of the fees paid by the client or their broker is for the initial and
ongoing work by Prospexx Integrated Capital and the size of these fees has no
bearing on the success of the funding project.
I have
read, understand and agree to abide by all twelve (12) points in this Letter of
Understanding dated this day
of , 2008.
Signed:
Please Print Name
Below:
Please print this page
and complete signature and dates. Return by fax, email or courier
service.
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