Funding Guidelines

Understanding Project Finance Guidelines

Those who require capital (businesses, governments, state owned companies and entrepreneurs at large) should have the following pre-requisites. Tesfin Capital will raise debt, equity, mezzanine, hybrid or other forms of finance provided the clients follow the simple guidelines listed below.

Pre-requisites

  1. Project appraisal for at least 5 years
  2. Business plan for the project with an executive summary.
  3. Documentation that confirms contracts e.g off take agreements or license from relevant authorities.
  4. Proof of ownership especially if the client claims to own land to which the development is done for real estate or agriculture projects. Examples include title deeds.
  5. Historical financial statements for existing companies. The company should provide a set of financial statements which include the following.

a) Statement of Financial position.

b) Statement of Comprehensive income / Profit or loss.

c) Cashflow statement.

d) Supporting notes to the above historical set of financial statements

Note: Rules apply to historical financial statements assuming United States Dollar equivalent amounts.

  • All companies who would like to work with Tesfin capital should have at least 5% to10% of the capital required in form of assets or Cash to easily qualify for project funding. For example a company requires $100 million it should have assets or cash of at least $5 million or $10 million in some cases.
  • Revenue should be greater than $2 million.
  • Earnings before Interest, depreciation, tax and amortisation (EBIDTA) should be greater than $1 million.
  • Audited set of financial statements by an independent qualified auditor is an added advantage though it’s not a pre-requisite.
  • Applicants should have not less than $2 million in assets.
  1. Client should complete our Tesfin Capital intake form directly through us or through our broker partners (banks, law firms and consultants).
  2. Directors/principals should be well established and have a solid business record.
  3. Directors or promoters of the company should have a clean record without any issues with the laws of the land or any negative media reports.
  4. The company which requires funding should be located in a United States friendly country where funds can be transferred easily without risk of being confiscated by the office of foreign assets control (OFAC). Certain countries or projects maybe restricted from accessing funding by US sanctions or blacklists issued by various US departments including the State department, OFAC or others. We will always guide you concerning the status of your country or project.

Capital Range

Tesfin Capital assists in funding projects with a minimum of $5 million. This can be in the form of venture capital for start-ups, high value projects that require project financing and corporate finance clients who wish to have either debt or equity or a mix of both.

The Work flow process stages

  1. Send us a deal directly or through our corresponding deal-sourcing partner.
  2. We sign an NDA agreement to protect your interests (Optional)
  3. Send the pre-requisite information (business plan; project appraisal; contracts; agreements; licenses; historical financial statements; proof of ownership and Tesfin Capital intake form)
  4. We do a short get to know each other meeting to clarify questions and develop a personal relationship.
  5. Tesfin issues an application form from a suitable financier for the client to fill in, sign and send back.
  6. If the financier approves the project, due diligence is done, after which capital will be allocated to the client/borrower within 90 days (This varies with the financier involved, the amount involved amongst other deal-specific issues).