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Due Diligence
We understand when our Clients
have concerns about paying Due Diligence Fees. We also understand that if the
project requires that due diligence be performed before funding can take place
then that is exactly what needs to happen. When Clients deny a Funding Source
the opportunity to investigate the soundness of the transaction then the deal
stops there.
Clients are required to pay for
the costs of verifying and confirming the information provided by a Client. We
have sophisticated investors that do their best to keep from funding bad deals.
Therefore, they have to take steps to confirm the accuracy of the information.
When funding a project can be accomplished without due diligence fees, we are
excited as you.
We appreciate that most Clients
are truthful, have extensive experience, and have verifiable information. Many
Clients have appraisals, audited financial statements, and third party opinions
about their projects. However, you would never go to court and use the other
guy’s attorney. In financing projects, our Investors require that they have an
opportunity to verify the Client’s information before writing a check. It costs
money to verify the information, to fly to the Client’s location, along with
hotel costs, attorney fees, accountant fees, and have individuals who have
expertise in that field to consult with the investor. The Client is required to
cover all these costs.
When you apply for a home
mortgage, you do not expect the mortgage company to pay for the appraisal. That
is a cost the Client must absorb. There are also fees for credit checks, and
loan origination. It is not very likely that a Client looking in the secondary
market, for business financing, will have a deal as easy to do, or has less risk
than a home mortgage. Therefore, it is logical to expect to pay appropriate
fees. A Client always has the opportunity to verify the creditworthiness of the
Investor before paying any fees.
In fact, we encourage this. The
more comfortable the Client is, the more successful we will be in putting
together a deal which will benefit the Client’s company, and make it more
profitable. Due Diligence Fees are only paid when both sides are comfortable
with the project, and there is clear understanding of the costs of moving
forward.
Real Funding Sources do not
charge fees just to put the money in their pocket. The Funders that The Project
Corporation works with have the capital to invest in others, they don’t need to
con a Client out of money, and put up with the headaches that would come with
that situation.
For Clients with real projects,
I am confident that we can alleviate any concerns about Due Diligence Fees,
provide the funding needed to acquire the assets which in turn will generate
revenue and increase the bottom line of the company.
The Project Corporation cannot
guarantee that a Funder will not find something in their due diligence that will
undo their enthusiasm of moving forward.
www.TheProjectCorp.com
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www.BusinessFundingSecrets.com
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