We recommend you read this section before you submit any deals to us. Our processes are driven by the Funders and Programme Managers that we use, and therefore they are not negotiable. If you could not comply with our processes and do not feel comfortable dealing with us, please do not proceed.
FAQs & POINTERS
Crossway Capital is positioned to be a 'go to' source for the Asia Pacific Region in the rapidly growing alternative capital and non-bank project finance market. This market, which has evolved and developed since the global banking crisis of 2008 (first identified by the OECD in 2005) is now valued at $71 trillion (Source: Bloomberg). As it has grown it has developed its own rules and protocols and the following are some of the questions we are regularly asked about process and structure:
I want to discuss my project with you, why can’t we set up a call?
We receive many proposals from potential clients. Regrettably, there are not enough hours in the day to discuss each one in a phone call. We ask all new clients to complete our online submission form with just the information we ask for in the first instance (please read the guidelines in front of the form carefully). This will give us all the information we need to know if and how we can assist. If we believe we can deliver your funding, we will then come back and ask for your executive summary and move forward from that point. We will also advise if we cannot assist.
Why should I pay any fees?
Despite all the frauds that have appeared along with the arrival of the internet (and the hordes of joker brokers and dreamers that came with it!), in the real world it has always been the case that genuine funders incur banking, legal, collateral, travel, due diligence and other costs. They are not going to do that without a show of commitment from the client who could walk away from the transaction at any time leaving the funder liable for all costs. Would you?
Most programs require a deposit or costs of some description to be covered, but only AFTER you have been made and accepted an offer of funding. Demanding that any deposit or cost is taken from the eventual funding simply tells us that you are inexperienced and do not expect to make any real monetary commitment to your project. Naturally, beware of any broker who wants a fee from you just for looking at your proposition or to present it to a funder.
But I’ve already spent money on my project – why should I pay more for the financing?
You may have bought your land, spent money on R&D or acquiring other assets in preparation for initiating your project. In the old days of traditional banking and loans, these might have been taken into account and considered a ‘deposit’ or ‘equity contribution’ towards your funding. But, even then, you might well have expected to cover other related costs. In the non-bank finance market, which is now the dominant form of project financing, your previous monetary commitment is a significant encouragement to the funder, but there are costs and charges involved in your financing towards which they still expects to see a contribution from the client. Also, despite what you have already spent so far a funder could still turn down your application if they don’t believe your management team is up to the job.
Also, as with the previous question, there is nothing to stop you ‘shopping’ your deal and walking away at any time, leaving your funder holding the baby.
Why won't you tell me who the funder is going to be?
The reason that funders work through gatekeepers, such as Crossway Capital, is because they want to focus on doing financing rather than fielding enquiries from the many 'dreamers' and 'no-hopers' that have come to populate the market. Indeed, these make up the majority of submissions received by us and others in our position. At your initial enquiry stage it is people like us who act as the filter and, if we believe you are viable, shovel ready and prepared for serious transaction, present your proposition to what we believe will be a suitable funder.
Until you have been through that filter and the funder has had the opportunity to review your case, they prefer to keep their identity withheld. Sometimes they will deal only through their Lawyers and/or Accounting Firm in order to protect their identity.
Why won’t the funder provide references of previous transactions?
In this market, where private investors invest through their asset manager, hedge fund or other ‘wealth manager’, very often through proprietary structures, every deal is covered in confidentiality agreements. These are essentially ‘private’ transactions and any disclosure could see the hedge fund lose their investors or cause other problems that no-one wants. Genuine funders will either meet with you and show you evidence of completed deals, or at least, you will draw comfort from knowing who you are dealing with. Some actually insist on meeting with you, at their offices, before you pay any deposit or costs at all.
Why can’t some funders provide proof of funds?
You will be dealing with funders who are managing vast sums of money on behalf of private investors and institutions. In some structures, the funds that are used for investment either as loan or equity, come from a number of different sources and are assembled through companies that, in themselves, cannot show the full amount of funding required. They simply receive the funds from their investors, structure the loan and then act as your loan provider.
Unfortunately, particularly with government entities involved in infrastructure, they still ask for proof of funds before ‘approving’ a funder. This is the reason why many social and economic infrastructure projects are held up in those less ‘enlightened’ jurisdictions, where those in government do not realise that the new non-bank structures can rarely provide the traditional ‘proof of funds’.
Other Funders will ask their Lawyers to show Proof of their Ability to Fund directly to your Lawyers, on a lawyer to lawyer communication. Again, this is to protect their identity.
Why won’t you sign my NDA?
Bearing in mind the number of submissions we receive it is impossible for us to review and sign client NDA’s. We have a standard NCNDA, based on the widely accepted ICC format, which we will ask you to sign if we move forward with your transaction.
POINTERS:
Always follow the funder’s processes and protocols. The quickest way to have your file closed is to demand that things are done your own way.
Respond promptly to requests for information from the funder. Delay and prevarication will push your deal to the bottom of the processing pipeline.
Be careful who you deal with. A sure sign that you’re dealing with a ‘joker broker’ is being asked to agree to pay them 2%, 5% or even more on completion before you even know who the funder is going to be. Funders do not want their money disappearing into broker chains. You need to deal with a genuine gatekeeper, like Crossway Capital.
Give files proper titles. Many people send us files with only the title assigned to it by a scanner or some other device, or file names that are only recognisable to those within the client organisation. We need to know what each file contains, clearly presented.
You’re not the only game in town. No matter how big or special your project, you’re one of hundreds that come to market every week. The vast majority, maybe 95% of them fail for many different reasons. The best guarantee of success is to be fully prepared, leaving nothing to chance and to work within the funders' processes.
Don't expect to find your funder on Google or any other search engine. Most serious funders in the alternative capital market represent private money, want their transactions to remain private and prefer to maintain their own privacy. They prefer to intake their deals through their gatekeepers, like Crossway Capital, in order not to be inundated with time-wasting propositions which is why very few of the genuine funders have a website.
I want to discuss my project with you, why can’t we set up a call?
We receive many proposals from potential clients. Regrettably, there are not enough hours in the day to discuss each one in a phone call. We ask all new clients to complete our online submission form with just the information we ask for in the first instance (please read the guidelines in front of the form carefully). This will give us all the information we need to know if and how we can assist. If we believe we can deliver your funding, we will then come back and ask for your executive summary and move forward from that point. We will also advise if we cannot assist.
Why should I pay any fees?
Despite all the frauds that have appeared along with the arrival of the internet (and the hordes of joker brokers and dreamers that came with it!), in the real world it has always been the case that genuine funders incur banking, legal, collateral, travel, due diligence and other costs. They are not going to do that without a show of commitment from the client who could walk away from the transaction at any time leaving the funder liable for all costs. Would you?
Most programs require a deposit or costs of some description to be covered, but only AFTER you have been made and accepted an offer of funding. Demanding that any deposit or cost is taken from the eventual funding simply tells us that you are inexperienced and do not expect to make any real monetary commitment to your project. Naturally, beware of any broker who wants a fee from you just for looking at your proposition or to present it to a funder.
But I’ve already spent money on my project – why should I pay more for the financing?
You may have bought your land, spent money on R&D or acquiring other assets in preparation for initiating your project. In the old days of traditional banking and loans, these might have been taken into account and considered a ‘deposit’ or ‘equity contribution’ towards your funding. But, even then, you might well have expected to cover other related costs. In the non-bank finance market, which is now the dominant form of project financing, your previous monetary commitment is a significant encouragement to the funder, but there are costs and charges involved in your financing towards which they still expects to see a contribution from the client. Also, despite what you have already spent so far a funder could still turn down your application if they don’t believe your management team is up to the job.
Also, as with the previous question, there is nothing to stop you ‘shopping’ your deal and walking away at any time, leaving your funder holding the baby.
Why won't you tell me who the funder is going to be?
The reason that funders work through gatekeepers, such as Crossway Capital, is because they want to focus on doing financing rather than fielding enquiries from the many 'dreamers' and 'no-hopers' that have come to populate the market. Indeed, these make up the majority of submissions received by us and others in our position. At your initial enquiry stage it is people like us who act as the filter and, if we believe you are viable, shovel ready and prepared for serious transaction, present your proposition to what we believe will be a suitable funder.
Until you have been through that filter and the funder has had the opportunity to review your case, they prefer to keep their identity withheld. Sometimes they will deal only through their Lawyers and/or Accounting Firm in order to protect their identity.
Why won’t the funder provide references of previous transactions?
In this market, where private investors invest through their asset manager, hedge fund or other ‘wealth manager’, very often through proprietary structures, every deal is covered in confidentiality agreements. These are essentially ‘private’ transactions and any disclosure could see the hedge fund lose their investors or cause other problems that no-one wants. Genuine funders will either meet with you and show you evidence of completed deals, or at least, you will draw comfort from knowing who you are dealing with. Some actually insist on meeting with you, at their offices, before you pay any deposit or costs at all.
Why can’t some funders provide proof of funds?
You will be dealing with funders who are managing vast sums of money on behalf of private investors and institutions. In some structures, the funds that are used for investment either as loan or equity, come from a number of different sources and are assembled through companies that, in themselves, cannot show the full amount of funding required. They simply receive the funds from their investors, structure the loan and then act as your loan provider.
Unfortunately, particularly with government entities involved in infrastructure, they still ask for proof of funds before ‘approving’ a funder. This is the reason why many social and economic infrastructure projects are held up in those less ‘enlightened’ jurisdictions, where those in government do not realise that the new non-bank structures can rarely provide the traditional ‘proof of funds’.
Other Funders will ask their Lawyers to show Proof of their Ability to Fund directly to your Lawyers, on a lawyer to lawyer communication. Again, this is to protect their identity.
Why won’t you sign my NDA?
Bearing in mind the number of submissions we receive it is impossible for us to review and sign client NDA’s. We have a standard NCNDA, based on the widely accepted ICC format, which we will ask you to sign if we move forward with your transaction.
POINTERS:
Always follow the funder’s processes and protocols. The quickest way to have your file closed is to demand that things are done your own way.
Respond promptly to requests for information from the funder. Delay and prevarication will push your deal to the bottom of the processing pipeline.
Be careful who you deal with. A sure sign that you’re dealing with a ‘joker broker’ is being asked to agree to pay them 2%, 5% or even more on completion before you even know who the funder is going to be. Funders do not want their money disappearing into broker chains. You need to deal with a genuine gatekeeper, like Crossway Capital.
Give files proper titles. Many people send us files with only the title assigned to it by a scanner or some other device, or file names that are only recognisable to those within the client organisation. We need to know what each file contains, clearly presented.
You’re not the only game in town. No matter how big or special your project, you’re one of hundreds that come to market every week. The vast majority, maybe 95% of them fail for many different reasons. The best guarantee of success is to be fully prepared, leaving nothing to chance and to work within the funders' processes.
Don't expect to find your funder on Google or any other search engine. Most serious funders in the alternative capital market represent private money, want their transactions to remain private and prefer to maintain their own privacy. They prefer to intake their deals through their gatekeepers, like Crossway Capital, in order not to be inundated with time-wasting propositions which is why very few of the genuine funders have a website.