Initial Review for your Business or Project...

Initial Review
The first step in the process is the submission of a Client Profile, (provided upon request) which is designed to summarize your contact information, lending requirements and other key data. If we believe the project meets our basic criterion, we will generally request a copy of the full business plan as a basis for our preliminary discussions with potential venture/financing sources.

Identify Potential Lenders
1-Capital Solutions works with a variety of venture capital/finance lenders. At this stage of the process, our task is to determine if your project is a "fit" with any of these lenders based on their general lending objectives. If there is a match, we will open discussions with two or three lending groups.

Lender Preliminary Review(s)
At this stage, our goal is to determine if any of our funding sources are prepared, in principal, to work with a client to complete financing. It is usually critical in establishing the depth of managements knowledge and understanding of their business and the risk factors they face as well as exploring the background of each team member and their respective strengths and weaknesses. Assuming a client has submitted complete documentation we can generally determine within five to ten working days if there is sincere lender interest in a project.

Lender Due Diligence
The due diligence process is ultimately where a loan project succeeds or fails. Depending on the lender particular procedures, the type of security proposed and the borrower's ability to provide requested documentation. The borrower must expect that any and all claims in the business plan and client profile will be subject to independent verification. It is also important to assess whether or not a good working relationship is likely to develop during the course of the negotiations, as this will be required during the course of the negotiations to ensure a successful outcome.

Fees
1-Capital Solutions Fees:
Success Fees:
1-Capital Solutions, charges a success fee based on the size and complexity of the project.

Success Factors:

Realistic Expectations
Before we formally begin an engagement our first goal is to ensure that the project meets the general funding criterion of our various lenders, and of equal importance, the client understands and is capable of working effectively with those lenders. Because 1-Capital Solutions is paid primarily on a basis of a success fee we have no interest in pursuing projects that will ultimately not be successful.

Professional Documentation
Having a good project is one thing, demonstrating it's value on paper is another. As part of our initial evaluation we will review your business plan for any deficiencies that will dampen lender interest or cause delays in the due diligence process.

We note that all application and business plan information must be submitted in English.

Full and Accurate Disclosure
Once a project is accepted for due diligence review by one of our affiliated lending groups, only lack of full disclosure or misrepresentation of key facts will result in failure. The VC will usually investigate the background of directors and senior management and run sensitivity analysis on financial projections. This information will then be combined with accountants reports together with any other specialist reports that may have been required. The final result will be a detailed picture of the company and the opportunities and risks that will be faced over the expected period of the investment.The client must recognize that the due diligence process will uncover any and all relevant information.

Managing the Client - Lender Relationship
Beyond facts and figures, collateral, and assets the success of a loan application ultimately rests on the assessed character and competence of the borrower and his team. In this regard, one of 1-Capital Solutions key roles is to help our clients effectively manage the relationship with the lender and understand the factors and issues that will be key to creating the right impression.

Final Approval and Completion
The due diligence process is usually exhaustive but once it is complete, final terms will be negotiated and a detailed investment proposal submitted to the board of directors. If this is approved, the final stage will begin with the preparation of legal documentation.

The shareholders agreement will contain the rights and obligations of each party and will cover such areas as veto rights by the investor on the purchase or sale of assets, salaries and loans to executives, appointment of auditors, listing or sale of the company as well as warranties on the accuracy of the information provided.

It is not unusual for the VC or their lawyers to have last minute questions, or for obstacles to arise. It is important at this stage that management focus on dealing with questions and issues, rather than allowing the frustrations that often developed during the investment process, to jeopardize the deal.