Credit Underwriting Consulting

As the Credit Underwriting is always having its own inherent complexities and associated risks, it is a challenge for many lenders and investors, quite often find it difficult in understanding the roles of various parties to the transaction, its assessment, unique characteristics of each project, financial model validation, contractual, legal, and regulatory requirements, currency and sovereign risks, and other characteristics of these investments. It is always better to understand and draw an absolute clarity for each of these components before approaching any lender or investor for a faster and favourable response. This is where Exclusivine comes into picture in providing our consulting services right from inception to the point of getting the Final Offer Letter (FOL) to our clients. This includes, Term Loans, Working Capital, Project Finance, Restructuring, etc. We will do the complete handholding our clients all through the credit underwriting cycle.

Through our engagement, we will review and assess the financial feasibility for bankers to lend money under any financial structure as elicited below:

1. Full set of project report consisting of the financial models and its assumptions, cost and means of the project proposed.
2. Independent feasibility study report.
3. Through a reputed law firm to vet the documentation and agreements.
4. Detailed project schedule covering milestones along with start to end process, will also include the details of approvals from regulatory bodies, its current status, timeline, criteria to be satisfied, etc.
5. Review all inherent assumptions made in preparing the feasibility report, project plan along with implementation schedule.
6. Financial Proposal prepared for submission to various banks’ financing’ along with promoters equity participation and their role/responsibilities.
7. Details of promoters, other stakeholders, contractors, sub-contractors, consultants, etc.
8. Detailed discussions with various stakeholders, contractors, vendors, sub-contractors and finally with Banks.

Our work will start with validation of following by using the above set of documents and on-site discussions and visits. Our team of experts, mostly accomplished Bankers will conduct a detailed due diligence as per the scope and report of the outcome will be provided for fine tuning the requirement for obtaining the bank finance/investment.

Project Risk

• Amount of money needed.
• How that money will be used.
• Expected returns

Construction & Start-up Risks

• Experience of contractor and project complexity.
• Regulatory, political, legal, and currency risk.
• Market and other factors such as labor, materials, force majeure risks

Structural & Financing Risks

• Debt & Equity Structure and its source and indepdendent review of financial projections.
• Structural enhancements and protections.
• Contract provisions and definitions, e.g., regarding force majeure, exit clauses, etc
• Existence and strength of covenants & conditions under normal and stressed conditions

Operating Risk

• Alternative sources of cash flow if revenues are disrupted.
• Use of new and unproven technology.
• Economic and demographic forecasts as in line with projections

Other

• Project Management Schedule, its dependebilities and assumptions.
• Monitoring mechanism, Milestones, contingency plan, pre and post completion of the project along with SWOT Analysis.
• Identification of early warning indicators to mitigate the risks in advance

We are committed to helping your business develop and succeed. Based on the above in-depth analysis, the project report is prepared for Banker’s review and consideration for debt financing covering the following subject areas. Therefore, we offer you a helping hand through a Banker’s perspective, that guides you through preparing a Financial Proposal that provides you with full consciousness, as you seek to attract debt or equity capital.

Our financing proposal details on how you intend to achieve your business plan outlining:

• Clear definition of project scope and specifications
• Rationale and feasibility of the assumptions considred from a Bankers perspective
• Economic Sector, Cost, pricing, market, demand, cost structures, other depedenbiloties along with execution risk

Apart from being essential to raising capital, the preparation of a financing proposal can be extremely beneficial to the operation of your business. As a fundamental management tool, our proposal:

• Forces you to write down facts clearly and objectively.
• Helps you to identify and clearly define products, markets and suppliers along with competition.
• Provides you with a guideline against which to measure results.
• Conveys a lasting impression of you and your company.
• Allows others to assess your chances of success.

It should be noted that our financing proposal contains a 5-Step process as per the details elicited below, which will be based on your business plan, which is basically a written summary of what your business is, where you intend to take it, and how you plan to get there from a Banker’s perspective.

STEP 1: Outline of the Proposal

STEP 2: Making a Strong First Impression

STEP 3: Creating a Detailed Proposal

STEP 4: Targeting Your Strengths

STEP 5: Making the Approach