|
Frequently
Asked Questions
What types of financing do you offer?
DFL is primarily a Long Term Corporate financier offering
loans in TT$ and US$. We do:
>Medium
Term Loans
>Long Term Loans
>Revolving Credits
>Lines
of Credit
The
term of the loan varies depending on the type and size
of business financed and the projected cash flows of the
borrower.
What
types of companies can DFL finance?
DFL finances companies involved in any of the followed operations:
>Manufacturing
>Tourism
>Commercial Services
>Industrial Services
>Agro-processing.
What
are the types of assets that DFL can finance?
>
Equipment
> Building
> Raw materials
How
long can the period of the loan be?
It depends on the expected life of the asset being financed.
For equipment from 3 - 10 years and for property financing
or hotel financing the period of the loan can be as long as
12-15 years.
What
interest rate does DFL charge?
Our interest rate will depend on the risk involved in the
project or company being financed. Or risk rating method is
dependant on key variables in a Company e.g Management Characteristics,
Key Financial Ratios, Economic and Environmental Factors affecting
the Company, Planning Techniques. The interest rate is determined
after our evaluation is complete. At that time we will price
the loan commensurate with the risk rating always ensuring
that a competitive rate is charged.
How
long does it take for DFL to approve a loan?
There are 2 stages:
Initial
Management Review
At this stage DFL will assess whether the project meets
our eligibility criteria. This takes approximately 2-3
days. If we are interested in looking further at a project
we will confirm this to you at this time and move on to
our Investment Appraisal.
Investment
Appraisal Process
This is an in-depth analysis involving independent
financial analysis, market analysis and engineering evaluation
and analysis. Once the Investment Appraisal is approved
DFL will communicate to you formally by way of a Letter
of Offer, which will outline all the relevant terms and
conditions. This phase usually takes 2 weeks depending
on whether or not all the information has been provided
by the client.
What
type of asset will DFL use to secure a loan?
>Asset being financed - building and or equipment
>Other assets owned by the company e.g property and
equipment
>A guarantee by an associated Company or parent company
>A personal guarantee from the promoter or key persons
involved in the business.
Will
DFL provide 100% financing?
DFL can lend up to a maximum of 50% of the total assets of
the company.
>
It is possible that in an incremental project DFL can
finance 100% of the expansion as long as DFL's lending
does not exceed 50% of the overall assets of the business.
What
percentage of the project must the promoter provide?
The promoter must provide a minimum of 35% of the total cost
of the project using his/her funds.
Does
DFL require its loans to be fully secured?
Yes all DFL loans must be secured at least 1.5 times the value
of the loan.
|
