I am aware of thousands of investors worldwide who don’t charge fees for their work. I could send your project to all of these investors; we don’t because we send your project to investors most likely to be able to fund your project. You can’t get the most capable investors to work for free. You can get the most capable investors to work very proficiently on your project for a reasonable fee.
It is very important that entrepreneurs
understand that they are expected to cover the cost of the funding source’s
investigative work and travel to their company during the due diligence
process. The only way for investors to determine the value of your project is
through the work they do, and the work performed by their accounting, legal and
industry experts. All of this work costs investors time and money.
For your information, I have some investors that
do not charge for due diligence but they have very strict criteria that
deliberately eliminates almost all entrepreneurs because they are very
selective in whom they wish to invest with. If you read all the way through
this web site, you will read the exact funding programs and the specific
criteria for the funding programs that have zero due diligence fees. For all
other funding projects, due diligence fees apply, that is the norm in the
investment industry. Banks and investment companies are for profit service
industries, along with doctors, attorneys, accountants, plumbers, and other
service based professionals that charge fees for their time and the services
they provide.
Be as honest as possible, any exaggerations or
misstatements of fact will be found during due diligence and could jeopardize
the funding of your project.
If an entrepreneur cannot afford this due
diligence fee, investors will evaluate that the entrepreneur does not have the
skills to oversee the investors’ funds. Investors do not provide millions of
dollars to companies without a due diligence process beforehand, this is not
only common sense it is good business sense.
Another reason investment companies perform due
diligence is because some investments become uncollectible accounts receivable
when the client is no longer able to repay debt. Many banks and investment
companies went out of business because of the volume of clients who could not
repay loans. As a result, banks and investment companies are going to perform
due diligence to reduce the risk of lending money that is not repaid. It is
also why banks and investment companies ask for notarized bank statements,
audited financial statements, cash and non-cash collateral, and independent
appraisals within the last thirty days for non-cash collateral, all of these
are designed to reduce investors' risk so that they do not lend out more money
that is not repaid.
Due Diligence includes but is not limited to the
following:
Civil, corporate and criminal background checks
on all principals and management team
Investigating the financial background of
principals (personal and corporate)
Accounting work - Assigning an accounting firm
to run a parallel pro forma and to verify the accuracy of accounting data
submitted
Travel to site and meeting with the principals
if desired by the funding source
Hiring industry consultants to assist in the
evaluation of the potential risk of the investment
Investigate liens on assets, property, and loans
Consulting of lawyers for legal matters in the
preparation of legal contracts
Fees vary by each individual project, industry,
geographic location, and the expected costs of accountants, attorneys, industry
consultants, etc. They are not negotiable. When travel is involved, the
entrepreneur is expected to cover all costs.
After you’ve provided your project to us,
investors will review your data; a conference call will be scheduled through my
office with you and the investors. At the end of that call, the investor will
decide if their company wishes to proceed. Time frame of the project and due
diligence fees is discussed. A non-disclosure confidentiality agreement, letter
of engagement and invoice for due diligence fees are all provided
electronically. Signed documents will be returned. Payment of the fee is then
required.
Send an e-mail to me at ifindfunding@gmail.com
