At the stage of obtaining a final credit decision, several tasks must be completed:
First, agree on the preliminary terms of the loan with the bank. In some cases, it is necessary to sign a protocol of intent. This process can take from 1 to 6 months, as it requires careful consideration of all the conditions that will be set out in the document:
A list of key project participants, which may include not only the lender, initiator and borrower, but also the general contractor, the main equipment supplier, key clients, engineering organizations and other counterparties.
The intended purpose of funding and the conditions for its provision.
Loan amount, currency, interest rate, term and repayment procedure.
List of collateral for fulfilling loan obligations.
List of guarantors.
Rights and obligations of the parties to the transaction.
Provision of guarantees and assurances.
Requirements for insurance and hedging risks.
Conditions under which the bank will conduit cn phone data approve the loan. The lender creates a list of possible risks, and each of them must be eliminated with the help of documents or certain actions.
Creating a "road map" for the Pension Fund. Based on the approved conditions, a plan for preparing the necessary documentation is created and agreed upon with the bank. This is required to obtain final approval of the loan. The following documents may be included in this list:
Documents that give permission to begin implementing an idea.
Design documentation with the necessary expertise.
Building permit.
Concession agreements and documents on state support.
Financial and legal documentation about the company initiating the project, the borrower, the investor and related parties, as well as the key partners of the project.
Market analysis results.
Documentation required to implement the project, including equipment purchase contracts, construction agreements, engineering contracts and other related papers.
Documents confirming the participation of the initiator and/or investor in the project, including the conclusions of independent appraisal organizations, if the contribution is in the form of property.
An agreement with a sponsor that defines its obligations to finance the project.
Any other documents specified in the conditions under which the final decision will be made.
Preliminary review of the application. All listed documents are transferred to the bank. Based on this data, the financial model is recalculated, covenants are updated and the necessary changes are made to the business plan.
Step 3: Receiving a final decision on the loan
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Analysis and examination of the documents provided. Third-party specialists are involved for this purpose. The examination covers several areas:
assessment of the economic and political stability of the region;
verification of legislative and legal aspects of the transaction;
financial analysis;
technical and construction analysis (in large projects, the bank often involves construction and engineering specialists, since bank employees usually do not have sufficient knowledge in these areas).
During the analysis, aspects may be identified that the bank considers problematic and require additional justification and elimination. After this, a final credit decision will be made.
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