Albert A. van Daalen & Partners are matchmakers between capital seekers and capital providers worldwide

NEEDED FOR FUNDING

What is needed for business funding? First, we need a financing memorandum which is preferably compiled by a chartered accountant. If you wish, we can send you a draft for the financing memorandum.

 

Secondly, if there is a funding option after assessing your financing memorandum, we will need at least:

- Client Information Sheet;

- Business Financial Statements and Tax returns of the juridical entity up to three years; 

- Proof of free, unencumbered and available own assets (equivalent to 10 to 15 percent of the required funding volume or 20 to 30 percent if there is any high-risk), included proof of fund of available liquidity and/or Bank Statement of the juridical entity from the previous three to twelve months;

- Proof of registration Chamber of Commerce of the juridical entity and other certificates needed for doing business; 

- Executive Summary with business overview and history, including goals, sustainable impact of the project, financial indicators and use of funds;

- Copy of office lease or statement signed from the owner and terms;

- Franchise Agreements (if applicable);

- Personal resume including business experience of each principal of the juridical entity.

And if the business is not a legal entity or company is younger than 3 years:

- Personal financial statement and tax returns up to three years of each principal.

Depending on the nature of the business case and criteria of the capital provider, there might also be other information that should be needed.

 

Finally, as capital seeker you should take account of upfront funding costs. The administration fee and/or due diligence fee, and similar fees payable to the capital provider, are the fees paid just to process and assess your funding request. They are non-refundable and paid upfront as a lump sum. These fees include a feasibility study by one of the ‘Big 4’ accounting firms, but do not include the costs for translators, valuators, tax consultants, lawyers and notaries. In most cases, upfront paid money is credited against usually the success fee when the funding closes. The total upfront costs are usually between € 75.000 to € 150.000. But the financing costs may also be lower.

 

If chosen for an alternative funding possibility through banking instruments, the target volume is achieved in tranches over 12-18 months. This form of financing can usually without a complete financing memorandum.