What the bank need to check before financing the project?

The banks will generally demand the following documents:

• Company Profile.
• Management Profile.
• Last Three Years’ Audited Financial Statements.
• Certificate of Incorporation of the Company.
• Copies of MOA & AOA.
• Copy of Business Bank Statement.
• Detail of Existing Loans from Other Banks.
• Project Feasibility Report.

What are the factors that needed to be considered in project finance?

The 6 criteria used to assess requests for financing

• Calibre of the business principals. Principals are the primary source of fuel for business projects.
• Business environment risks.
• Project credibility.
• Company’s ability to pay and financial structure.
• Principals’ financial history.
• Security.

What are setoff rights?

SETOFF AND RECOUPMENT GENERALLY. A. Setoff is an equitable right of a creditor to deduct a debt it owes to the debtor from a claim it has against the debtor arising out of a separate transaction.

What is a bank setoff?

Set-off clauses give the lender the right of setoff—the legal right to seize funds from the debtor or a guarantor of the debt. If a debtor is unable to meet an obligation to the bank, the bank can seize the assets detailed in the clause.

What are setoff damages?

A setoff is a claim by a defendant in a lawsuit that the plaintiff owes the defendant money which should be subtracted from the amount of damages claimed by plaintiff. The matters which may be set off, may be mutual liquidated debts or damages, but unliquidated damages cannot be set off.

What is the difference between setoff and recoupment?

A. Setoff is an equitable right of a creditor to deduct a debt it owes to the debtor from a claim it has against the debtor arising out of a separate transaction. Recoupment differs in that the opposing claims must arise from the same transaction.

What are the reasons for loan rejection?

Job hopping or unstable employment is one of the reasons for loan rejection. To banks, job stability means that you are able to pay your dues without fail. Some of the banks have set requirements such as “at least one year in the current job” or “two years of total work experience” as their eligibility criteria.

Why did my mortgage application get rejected?

Why mortgage applications get rejected 1 Credit score too low 2 Debt-to-income (DTI) ratios are too high 3 Down payment funds aren’t enough 4 Loan-to-value (LTV) ratio is too high / appraisal came back low 5 Job status change 6 Large cash deposits in bank accounts

How do I get a bank to waive off fees?

To avoid excessive loss of money through bank fee payments, the customer may request the bank to waive off the fees. The letter must be formal and concise. It must be addressed by the customer who is requesting a waiver and not any representative.

What is a change of control provision in a contract?

A change of control provision is an agreement where a party has certain rights, such as payment, consent, or termination. This is often related to a change in management or ownership of the opposite party. However, there isn’t a standard definition when it comes to a change in control.