FREQUENTLY ASKED QUESTIONS

1. What is the procedure to retain the professional services of International Business Finance Corporation? 

2. What is International Business Finance Corporation’s definition of a project? 

3. What are the fees charged by International Business Finance Corporation for its professional services? 

4. Who is responsible for the payment of International Business Finance Corporation’s fees? 

5. When are International Business Finance Corporation’s fees due and payable? 

6. Does International Business Finance Corporation charges any up-front fees? 

7. What do International Business Finance Corporation’s fees exclude? 

8. What does a due diligence process entails? 

9. Who appoints the professional consultants responsible for the due diligence process? 

10. Will my business, project and/or patent’s intellectual capital be protected? 

11. Who are the sources that provide International Business Finance Corporation and its clients with venture capital funding? 

12. Which financing options are available? 

13. What field or industry and geographical area are most favored by International Business Finance Corporation’s financiers? 

14. What are the criteria for investment? 

15. What makes a business or project opportunity viable for consideration by financiers? 

16. Why is the business plan so important? 

17. Is an own contribution and security always required by financiers? 

18. What are the terms and conditions of investment, required by financiers? 

19. Can the negotiation and facilitation process be cancelled? 

1. What is the procedure to retain the professional services of International Business Finance Corporation? 

In order to retain the professional services of International Business Finance Corporation (IBFC), a potential client only needs to complete an Executive Project Summary document according to the Template available on the ‘Downloads’ section of this website. The completed Executive Project Summary as well as Business Plan documents of the project should be forwarded to an IBFC Agent or to the Management at: info@gabm-pinc.com

On acceptance of the required documents, International Business Finance Corporation will appoint a dedicated consultant to assist you in your request. 

2. What is International Business Finance Corporation’s definition of a project? 

For our purposes, ‘project’ refers to any business activity or opportunity, corporate arrangement or undertaking, development proposal, business venture, concept or plan. A project can include financing for any of the following business development requirements: 

• At start-up, to facilitate product development and initial marketing financing. 

• In the early stage, to enable commercial manufacturing to take place so that the venture can start generating profits. 

• The expansion phase requires capital to increase an enterprise’s production capacity and to develop and market its products. 

• Refinancing that entails the purchase of existing shares in a venture from another venture capital firm. 

• Funding for import and export financing and/or the provision of guarantees. 

• Funding for trading and speculation in minerals and commodities. 

• Funding for new project developments. 

• Funding for property development projects. 

• Institutional funding or investments. 

• Funding for merger and acquisition, MBO and MBI transactions funding. 

3. What are the fees charged by International Business Finance Corporation for its professional services? 

Each transaction facilitated by International Business Finance Corporation involves various professional services disciplines and procedures. The complexity and nature of the professional services required from International Business Finance Corporation will determine its pricing matrix, which in any circumstance will never exceeds 3% (three percent) of the total transaction value. 

4. Who is responsible for the payment of International Business Finance Corporation’s fees? 

International Business Finance Corporation always structures its transactions in such a way that the financier will be responsible for its 3% fee on the successful closing of the transaction. 

5. When are International Business Finance Corporation’s fees due and payable? 

International Business Finance Corporation’s 3% fee is due and payable by the financier at closing. 

6. Does International Business Finance Corporation charges any up-front fees? 

No. International Business Finance Corporation is only being paid for its professional services if a funding transaction is successfully concluded. 

7. What does International Business Finance Corporation’s fee exclude? 

International Business Finance Corporation’s fee structure includes only its own remuneration. 

The following potential fees and expenses are not included in International Business Finance Corporation’s pricing matrix: 

• Fees relating to a client’s own professional advisory team (If applicable). 

• International travel expenses (If applicable). 

• Contract - legal fees (If applicable). 

• Due Diligence fees (If applicable). 

8. What does a due diligence process entails? 

The due diligence process is a comprehensive strategic and financial investigation into a potential business or project acquisition or investment that is conducted on behalf of a buyer, partner investor, investment fund or a venture capital funder. 

9. Who appoints the professional consultants responsible for the due diligence process? 

The financier always appoints the applicable due diligence team or consultants. 

10. Will my business, project and/or patent’s intellectual capital be protected? 

Yes. International Business Finance Corporation provides contractual protection in addition to its strict Code of Conduct & Ethics and entrenches – among others – multilateral action as well as the confidentiality of its clients’ information in the interest of maintaining and building trust and confidence. 

11. Who are the sources that provide International Business Finance Corporation and its clients with venture capital funding? 

International Business Finance Corporation acts as international placement agent for several high profile and influential venture capital firms, which can support and provide our clients with corporate finance. 

12. Which financing options are available? 

International Business Finance Corporation’s financiers offer loan-structured finance, equity-structured finance, or a combination of these financing options. 

International Business Finance Corporation facilitates funding with two categories of financiers: 

• Venture capitalists 

Venture capitalists offer equity-structured finance for projects requiring medium- to long-term financing of US $1-million or more. This type of financier is typically directly involved in the business, providing strategic direction to management as well as financial support for the company. He/she may have a seat on the board but does not usually participate in day-to-day management. The reward is rapid growth of the enterprise in the medium- to long-term, with the funder exiting through the sale of the company, a management buy-out, or a flotation on the stock market. 

• Investment angels 

Investment angels provide loan-structured finance of US $100K or more, utilizing various loan structures, with interest determined by the level of risk inherent in the venture. Although these projects are implemented independently, the project owner makes use of the wide range of professional expertise offered by International Business Finance Corporation’s clients. 

13. What field or industry and geographical area are most favored by International Business Finance Corporation’s financiers? 

No one particular industry, field or geographical area is more favored or sought after by International Business Finance Corporation’s financiers for financing than another. Projects are evaluated on an individual basis, each according to its merits. 

14. What are the criteria for investment? 

Venture capitalists and investment angels normally assess the viability of a business or project opportunity on the merit of the business plan submitted to them. When considering an investment proposal – financiers also considers the contribution the entrepreneur is prepared or able to offer. In addition, financiers also evaluate the entrepreneur’s level of integrity, enthusiasm, drive to succeed, relevant experience as well as the quality and marketability of the product or service. 

Investment criteria: 

Our associated financiers seek opportunities to finance ventures that offer unique products or services, with management teams that have direct experience in the relevant market, and partners who can demonstrate a strong commitment and ambition to making their business plans work. 

Projects introduced by our clients for funding must conform to the following basic criteria: 

• The project needs to be registered in a company. 

• Venture capitalists offer equity-structured finance for projects requiring a medium- to long-term investment of $1-million (one million US Dollar) or more. 

• All projects must have the demonstrable potential to produce an above average return on investment per annum. 

• The company’s Board of Directors must consist of at least two Directors with industry specific expertise and knowledge relating to the project. 

• All projects are subject to a vigorous evaluation and risk assessment process, to the benefit of both proposer and potential financiers. 

15. What makes a business or project opportunity viable for consideration by financiers? 

A business is considered viable when potential returns exceed the risk of the investment. Other factors considered when assessing viability include the nature and location of the business, its history, the stage of its development and medium to long term profit potential. 

16. Why is the business plan so important? 

The majority of business or project opportunities that are turned down by international venture capitalists and investment angels are a direct result of the ill-prepared business plans that are submitted. Standardized or mediocre documentation will never be tolerated or accommodated. 

Entrepreneurs should recognize that a business plan is the road map for an enterprise, detailing how an entrepreneur intends to establish, run and grow its business. It is required that important facts such as manufacturing and retailing plans, sales and profit projections, strategy and marketing plans, risk management as well as financial management be reflected in the document. 

Information and documentation: 

As venture capital investments and project developments are by nature high in risk, our clients are asking financiers who know nothing about them, their capabilities or their venture, to commit substantial capital to their project and to share in the inherent risks presented by their project. It is therefore to be expected that the financiers want to know as much as possible about our clients and their ventures. 

Our clients are advised to refrain from having unrealistic expectations about the amount of information and documentation that will be requested during the application process as well as the time period involved in the negotiation and facilitation process. 

Projects can unnecessarily be delayed because of: 

• Incomplete documentation being submitted. 

• Geographical considerations. 

• Comprehensive evaluation process. 

• Lack of dedicated expertise and management support on the part of project leaders. 

• Unrealistic expectations by project leaders. 

• Nature and scale of projects. 

Project leaders should bear in mind that any errors, incompleteness, omissions and/or a lack of clarity will reflect negatively on you as project leader. It may also result in unnecessary and lengthy delays in the final evaluation process. This can also influence the opinion provided to financiers and/or project developers about the viability or profitability of your project or business opportunity. 

17. Is an own contribution and security always required by financiers? 

No. Venture capitalists and investment angels do not always require own contributions or securities in return for their investments. However, an own contribution not only shows commitment on the part of the entrepreneur, but provides the basis for a more positive financial structuring of the transaction. 

18. What are the terms and conditions of investment, required by financiers? 

In the international venture capital industry there is no standard terms or conditions for investment. The terms and conditions will vary from project to project and hence the transaction will be structured in accordance with the merits of each individual project. 

19. Can the negotiation and facilitation process be cancelled? 

The financier has the sole and exclusive right to cancel the funding process at any stage for various reasons. For example: 

• If the project or request is found to be not viable, profitable or reasonable. The information provided by the project leader will be taken to be true and correct. 

• If any of the information proves to be incorrect, misleading or fraudulent, for whatever reason, the process or procedures will be halted immediately. 

• On written request from the applicant. 

In such an event, International Business Finance Corporation or the financier will assume no responsibility for any losses of whatsoever nature incurred by the project leader.