Stop deluding yourself.
Look in the mirror and ask yourself how much cash you have actually put in your pocket from a closed transaction.
Then think about how that cash came about.
Stop dreaming that you can position and close an offshore finance transaction without any expenses or simply by email or fax or phone.
The entire basis of an offshore financial transaction revolves around the collateral, its ability to be delivered and if in the event of a default, to be collected upon.
When you work the transaction backwards from that point in time, you need to look at what you have to do to get to that point in time if a default occurs, how to cure the default and how much will it cost.
To set up a deal offshore properly and in a prudent manner requires personal involvement either by you or a professional that is willing to jump on an airplane, actually go to the bank, set up the appropriate accounts and make sure that all the t's are crossed and the i's are dotted as well as deal with all of the issues related to the transaction.
Their is no magic nor mystery to the process, it takes a lot of hard work, time and money.
We have found that it is more cost and time efficient to make sure a deal happens by segregating the confirmation from the settlement process where the settlement occurs as a result of the confirmation of all of the elements and supporting documentation and issues having been dealt with prior to the settlement.
That is why we do deals as principals and not as brokers and why we quarterback all elements personally.
One person has to be aware of all of the communications that are necessary and to be able to direct all of the communications.
We respect relationships, and we work with professional brokers who refer us projects who recognize that they are being paid through a referral fee at closing for making the introductions and for stepping aside so that the deal can happen between the principals.
Unfortunately, the bane of this business is that their are many people who take terms and related issues to those terms out of context and simply put have no idea of what it takes to put together a deal that will close, especially offshore.
The only way you are going to get a collateral enhancement for your project is to have your project presented in a professional manner in a Wall Street quality due diligence package and then comes the credit enhancement to support the project.
The project will have to be able to support the debt service and cover the exposure on the credit enhancement.
Too many people focus on the peripheral issue of the tactical process as opposed to the strategic objective and think that if they have a proof of funds or the collateral than they are home free.
Well you are not.
The collateral has to be paid for and that has a cost attached to it and the exposure of the collateral has to be covered.
A proof of funds is appropriate at a point in time and based on what the funds are being proven for, if what they are being proven for cannot be delivered, then the proof of funds is a useless exercise and all you have done is expose information and relationships for nothing.
There is no free lunch in this business and the process takes time and money.
It is based on relationships and on the international capital markets and not on fax or email communications which support those relationships. The internet is a great tool, but it is not an end of or by itself.
If you are seeking project finance or need help with an offshore transaction, send an email to capsol@comcast.net or call Mayer Etkin at 206-577-2736
We will take a look at what your deal is, if we like it we will make a proposal and based on our proposal we can make it happen, but you will be required to cover the pre closing costs which are reimbursable at closing.
A confidentiality agreement is required.
That's the real world.
This post is for information purposes only and is not an offering of securities and is subject to the disclaimer contained in this forum.
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