Always aiming higher with Success

CIS & Due Diligence Page

Always aiming higher with Success

CIS & Due Diligence Page

by admin
CIS & Due Diligence Page
It is standard to send copies of identification to funders; they (the funder) need to do their due diligence which is otherwise known as KYC – Know Your Client. This is law and is standard throughout the world. It is how banks protect themselves from potential money being laundered through their banks. This is standard procedure in the banking world. Part of the CIS will involve proof of identity which means you will be asked to supply a passport and any other form of documentation proving who you say you are. Attempts to make false representations or attempts for fraud and/or M.L. will be passed to the relevant authorities. Our group has a responsibility to assess risk in each case.

Due Diligence

Due diligence is the process of investigation, performed by our Group take into account the details of a potential client(s) – (KYC) by taking on assessments such as an examination of operations and management and the verification of material facts.

What is involved in performing “due diligence” for project funding?

  • Environmental Impact
  • Investigation and Verification of assets
  • Permits and licenses
  • Legal matters reviewing the projects financials
  • Meeting with project principals and relevant management personnel
  • Acknowledgement of product issues and evaluating the marketing strategy
  • Foreign operations
  • Plus a host of other checks not included in the list.

The funder or his representative could also engage and/or consult with companies or service providers representing the project such as

accountancy firm, law firm and construction firm plus others. Sometimes not all of these tasks are necessary.

How much does it cost?

Due diligence costs vary on the nature, size and location of the project. Due diligence costs will often include:

  • Flights
  • Accommodation in the country
  • Project location
  • Legal/professional fees (will be borne by us)

Why doesn’t the funder pay for due diligence?

The due diligence cost is normally the borrower’s responsibility. Funders receive many projects a day from all around the globe- of which yours will be one. Once you realize the huge amount of money that they will have to spend on investigating each project that shows promise every day of the year, it becomes clear why they will not adopt such a practice. It would be impossible to pay for so many projects’ due diligence expenses on a daily basis, and also we would like to tell you that we will go for due diligence only when we are interested to fund your project.

Others promise the money and guarantee closing; can you offer me such security before I pay any expenses?

No. This is false security. In the financial world there are no guarantees or promises. The only security you can have is when the money is in your company’s bank account. We suggest if any individual or company offers you such false assurances that you should walk away from whatever they are assuring you of.

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