UP TO 100% CAPITAL FOR VIABLE PROJECTS - GLOBALLY! DIRECT SOURCE

NEPCO, INC is a private commercial non-bank lender (NBL) with capital participant’s, affiliates and assignees that fund viable projects both domestically and internationally.  We have a huge amount of capital available and are looking for projects $100MM or more.  Minimum loan amount $10MM, smaller amounts on a “case by case” basis.  Our process is simple, consistent and fully transparent to ensure that our clients are informed and comfortable with the steps, process and requirements necessary to get their projects funded.  Formed in 1990 with a focus toward the following:

  • Providing a clear path to capital placement by decreasing the time for due diligence
  • Identification, packaging and presentation of underwriting document requirements. 
  • Third party, independent verification and reporting along with “need and necessity” study.
  • A more secure risk mitigation model for our investors through executive and directors insurance guarantee. 

                                                     

As a direct non- conforming or alternative capital source without prepayment penalties we can provide up to 100% funding either debt or equity or combination for Energy, Technology, Mining, Business and Real Estate based projects. 

 

Program highlights:

  • Minimum loan amount is $10M US with no maximums on asset based lending 
  • Funding is based on strength of project not LTV or LTC 
  • Moratorium on payments by use of an interest reserve for a reasonable period
  • Bank rate or better pricing 4%-6%
  • Terms of up to 30 years
  • Closing of escrow can range from 30-120 days with 60-90 days being the average.  Timing is dependent upon client response and third party reporting

 

What we need to determine project merit and risks:

  • NDA & Project summary questionnaire (Provided)
  • Business Plan or Executive Summary with actual or proforma income statements 3 -5 years
  • Balance Sheet/Financial Statement/Cash Flow/P & L with YTD less than 90 days old (if applicable)
  • Copy of Appraisal or other valuation (if available)
  • Expanded Resumes of all principals
  • Line Item Detailed Use of Funds for short-term and long-term projections
  • Exit strategy
  • Financial statement-Personal/Corporate
  • Proof of funds invested to date in the project

 

You will need:

  • A project ‘fit for purpose’ i.e. ready for capital with all licensing,  permitting and any entitlement or incentives in place or committed to be in place within 90 days
  • Cash invested in project   (we can help through IRS approved credit enhancements)
  • Equity in project    (we can place an equity strip if needed)
  • Some capital reserve available to for necessary third party investigation and reports and other lender requirements like site visits, feasibility reporting, due diligence investigation and reports, appraisals or business valuation documentation   (we can help with possible crowdfunding programs)
  • Background of Principal and infrastructure team with track record of success
  • Unique position of project, innovations or principal experience that enhance the success of the venture
  • Market research, program, plan or strategy to identify, capture and deliver your product or service to this market.

 

Due Diligence and other Third Party Cost:

This is the most misunderstood subject in project funding.   Too often we see proposed transactions not proceed because the client does not have the capacity to pay the necessary cost.  Funding requires professional third party reports to determine project viability, mitigate risk and determine likelihood of project success but this first step is not and cannot be free. You cannot successfully acquire capital with empty pockets.  There are many borrowers with no money who persistently want lenders to give them a loan and pay for all of their costs. The fact is that these lenders simply do not exist. You will have to take some risks –this is why you must have a professionally developed, viable, profitable project with a detailed business plan and an excellent management team.  Third party cost and other fees are common in the industry, including the performing lenders we work with.   There is no shortcuts.

 

The cost of capital falls into four basic categories:

  • Due diligence or processing fees including Business Appraisals and Valuation
  • Review or third party independent studies i.e. Feasibility reports
  • Lender points
  • Agent/facilitation fees

    Due Diligence or Processing Fees: Fees charged by the lender typically after a term sheet/MOU is signed to underwrite a loan and cover the costs of evaluating your project. These costs include a detailed evaluation of your financials and business plan, legal costs, new appraisals, credit and background checks, a site inspection, blocking the money to fund your project and a lot of other due diligence. The risks are too high for a lender to cover all these costs, only to have the deal collapse or the borrow walk away just before closing.

 

Third Party Studies and Reports: Feasibility and need and necessity studies determine the conditions affecting project, probable market penetration, management skill sets for managing project and possible after stabilized value.  All lenders or investors will require an independent study that speaks to viability of funding the project.


Lender Points: Many hard money lenders charge from 1 to 10 additional points above debt interest, which are typically worked into the terms of the deal. These fees become part of their revenue model and are factored into the risks they are taking.

Agent/Facilitation Fees: We earn our fees by connecting clients to viable performing lenders to whom we are direct. We do not charge up-front fees. Unfortunately, many agents are not direct to lenders and simply shop the project around the internet. 

We believe that ‘the relationship’ is as important as the capital in allowing us to work together for a successful outcome. 

(PROGRAMS SUBJECT TO CHANGE AT LENDER DISCRETION)

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