B.S.C. Management LLC

Funding Requirements

Funding Requirements

Basic Funding Requirements

When seeking a business loan from your local bank, you’ll be asked to present various documents to demonstrate the viability of your project. Project funding follows a similar process but offers multiple funding avenues. To help a suitable funder assess the worthiness of your project, you will need to provide the following minimum requirements:

  1. Executive Summary
  2. Business Plan
  3. Financials (current or projected)
  4. Power Purchase Agreements (PPAs) and Relevant Licenses
  5. Curriculum Vitae (CVs) of Project Principals
  6. Completed Application for Funding Form
  7. Proof of Funds (Most lenders require proof of equity or ability to pay fees. Some funders may require cash equity depending on the funding method.)
  8. Registered Company (Having a company website is also helpful)

Critical Components for Business Funding

Before approving a project for funding, lenders evaluate its mechanics. The business plan and financials should demonstrate the project’s strength and performance in these key areas:

  1. Goals, Vision, and Strategy

    • Clearly defined goals, a compelling vision, and a strategic approach are essential.

  2. Thorough Research and Innovation

    • The project should be well-researched and innovative to stand out.

  3. Qualified and Experienced Team

    • The team should have relevant qualifications or experience in the project’s sectors.

  4. Growth Potential

    • There should be a strong market for the products, indicating potential for growth.

  5. Risk Management

    • Effective risk management strategies should be in place to mitigate potential challenges.

By meeting these requirements and focusing on these critical components, you can enhance your project’s appeal to potential funders and increase your chances of securing the necessary funding.

Critical Components for Due Diligence in Business Funding

When conducting due diligence, funders typically evaluate the following components to ensure the viability and potential of a project:

  1. Cash and Collateral

    • The amount of cash and collateral already invested in the project. The more, the better.

  2. Solid Commercial Agreements

    • Established and robust commercial agreements that support the project.

  3. CIS/Questionnaires

    • Comprehensive risk assessments and questionnaires.

  4. Credit Worthiness

    • Evaluation of the creditworthiness of the client and counterparties, including credit scores, collateral, capacity, and cash flow.

  5. Credit Enhancement

    • Presence of private guarantors, investors, or bank instruments to enhance creditworthiness.

  6. Promoters’ Credibility and History

    • The credibility, reputation, and track record of the promoters involved in the project.

  7. Loan Terms and Conditions

    • Clear and acceptable terms and conditions of the loan.

  8. Corporate Structure

    • A compliant and acceptable corporate structure.

Alternative Business Funding Methods

Since 2008, banks have tightened their lending criteria and become increasingly selective. Even projects with collateral may not guarantee a loan, as lenders seek projects with maximum potential and minimum risk. Lenders prioritize protecting their interests, not yours. Therefore, presenting a comprehensive, in-depth analysis with creative problem-solving and conceptual thinking is essential for funding success.

In this industry, connections are often more important than knowledge. Understanding what funders are looking for gives us valuable insights into their unique requirements. Our role is to introduce and represent your company effectively, connecting you with the right funder for your project. If there is no progress with your application, it may be worth re-evaluating your business plan, as funders can be very selective.

Why Choose B.S.C. Management LLC?

Tailored Solutions: We specialize in crafting customized financial solutions that meet the unique needs of each client. Global Network: Our extensive international network of funders allows us to provide diverse opportunities. Direct Partnerships: We maintain direct relationships with lenders to streamline the financing process, ensuring efficiency and flexibility. Comprehensive Support: We provide in-depth analysis, creative problem-solving, and conceptual thinking to enhance your chances of funding success.

Connect with Us

Embark on your funding journey with B.S.C. Management LLC. We are here to navigate the complexities of the financial landscape, turning challenges into opportunities. Contact us today to discuss how we can tailor a financial solution to bring your vision to life.