Frequently Asked Questions

1. I need some finance for my project (business). What do I need to do to secure this finance?

2. How long do I have to wait before finance is availed for my project (business)?

3. What rate of interest will be charged on the debt finance?

4. If no interest is charged by the debt finance providers, how do they expect to profit from their provision of finance?  Are the debt finance providers availing finance on a charitable basis?

5. What proportion of a project's (or business's) equity do the financiers take?

6. Is the debt finance secured or unsecured?  If secured, on what?

7. If the financiers pull out from their intended finance provision, after payment of the 1% project (business) appraisal and due diligence fee, is this 1% fee refunded?

1. I need some finance for my project (business). What do I need to do to secure this finance?

Send us an executive summary of your project (business), preferably no more than 2 A4-sized pages, to info@aluochier.com.  We will review your project based on the information you supply in the executive summary, and assess whether it is a project that we are capable of raising the requisite finance for. If we reply in the affirmative, then the formal finance raising process can commence, upon your payment of the 1% project (business) appraisal and due diligence fee, and your submission of a comprehensive project (business) plan for your project (business). 

2. How long do I have to wait before finance is availed for my project (business)?

Typically, it should take about 4 to 6 months from the formal finance raising commencement, to initial disbursement of project (business) funds, though this time-frame is dependent on the specific characteristics of the project (business).  Some small value and simple projects might require a much shorter wait, while some high value and complex projects might require a much longer wait.  The waiting period is also a factor of the level of preparedness of the project (business) to receive the sought for funding, and the ease and expeditability of the due diligence process.  Projects (businesses) facilitating an expeditious due diligence process secure the sought for funding without an undue wait.

3. What rate of interest will be charged on the debt finance?

0% - No interest.

4. If no interest is charged by the debt finance providers, how do they expect to profit from their provision of finance?  Are the debt finance providers availing finance on a charitable basis?

Debt finance providers are not availing finance on a charitable basis, but on a commercial basis.  While they do not propose to profit from their lending activity, they certainly intend to do so from their associated equity investment in the project (business).  In other words, the finance providers do not provide stand-alone debt finance, but combinations of debt and equity finance, with the profit to the financiers coming from their equity investment in the project (business).  Therefore, for the financiers to advance their finance, the prospects for their proposed equity investment must be sufficiently profitable to warrant provision of both interest-free debt and equity finance.  This implies that only seemingly commercially viable projects (businesses) are likely to be funded, as the returns to the investors come from the profits generated by the projects (businesses) - the portion that proves their commercial viability.

5. What proportion of a project's (or business's) equity do the financiers take?

This depends on the amount of finance provided as a proportion of total funding for the project (business), the rates of return sought by the financiers, and the agreed proportion following negotiation between financiers and project (business) owners.

6. Is the debt finance secured or unsecured?  If secured, on what?

For project finance, debt finance is typically secured by the entirety of the project, or on project assets whose collective value is greater than that of the debt finance provided.  Likewise, for business finance, debt finance is typically secured by the entirety of the business, or on business assets whose collective value is greater than that of the debt finance provided.

7. If the financiers pull out from their intended finance provision, after payment of the 1% project (business) appraisal and due diligence fee, is this 1% fee refunded?

This depends on the reason for the pull out by the financiers.  If the reason for the pull out is founded on a defect in the project (business), including any critical aspect of the project (business), and that defect has not been remedied, or cannot be remedied, then no refund of the 1% fee is made.  If the pull out reason is founded on the financiers, without any defect on the part of the project (business), then the 1% fee is refunded.  But if the pull out reason arises on a cause outside of either the financiers or the project (business), then each party bears their own risk, and no refund of the 1% fee is made.