E-mail from Wisefund
January 17, 2019
Yet another e-mail. This time from Wisefund. The recent events around Keutzal have shaken up the market.
Dear Wisefund user,
Due to recent happenings in business crowdfunding world we have updated How it Works page with additional section
Borrower Acceptance Policy
For the purpose of understanding the process of how Wisefund accepts borrowers before listing them to fund their loan requests, please see insight of the process that has been integrated with Wisefund as its Borrower acceptance policy from the very beginning of the operations, with improvements over each new case.
There are certain procedures that borrowers go through before they get accepted for the listing.
1) Application letter received from the Borrower.
2) The Portal conducts prima facie check of the Borrower per the publicly available information.
3) NDA If Step 2 passed, the Portal requests that the potential Borrower signs:
- Proposed Fee Schedule.
4) Provision of information from the Borrower:
- Corporate documentation for KYC check;
- Annual accounts for past 3 years and last 3-6-9 months (as applicable) operational balance sheet;
- CVs of UBOs, Shareholders and Managers (Directors), Key Employees for the Project;
- Project description, including business partners, subject matter, repayment schedule;
- Source of interest and fee repayment – outlays
- Asset list;
- List of liabilities due in the next 12-18 months after the date of the NDA (depending on the term of the financing requested);
- Letter of good standing from a local bank in place of incorporation or majority of business operations;
- Letter of absence of tax debts from the relevant tax authority;
- Confirmation of absence of litigation/ collections against the potential Borrower or its UBOs, Management (Directors), Shareholders;
- Description of the local (location of the asset jurisdiction) commercial pledge/ mortgage procedure.
5) Due Diligence and AML KYC
Based on the information provided, the Portal conducts Legal/ Financial/ Tax
Due diligence/ AML/CTF.
6) Tax opinion If necessary, the Portal requests the potential Borrower to provide a certified tax opinion or confirmation re repayment of Loan amount, interest and fees as per the Fee Schedule.
7) Draft Loan Agreement and Appendixes
If Steps 5 and 6 passed without major RED FLAGS and/ or all material issues cured, then the Portal prepares and issues draft :
- Loan agreement,
- the Fee Schedule, and
- Indemnification letter (re all and any fees/ taxes/ duties collectable by tax authorities in relation to repayment of the Loan amount, interest and applicable fees are payable by the Borrower).
8) Publication on the Portal
After the signing of the Loan Agreement, the project (with relevant guarantees) is posted on the Portal. Funding commences.
9) Funding at 100% The Loan is issued only after it is 100% funded.
10) Borrower reports to the Portal on the performance of the project, the utilization of the lent amount based on the purpose of the loan either upon request, quarterly or monthly – all depends on the loan terms
11) Interest and Fees Loan principal amount, Interest and Fees are repaid per the signed Fee schedule.
If you have any questions, please reach out to firstname.lastname@example.org and we’ll be happy to help.