KPC Project Finance
7 Stages of Funding
Funding will consist of 7 stages. The process by which a project gets funded must follow these 7 stages. We believe it’s important to understand these stages so that the process is followed, and expectations met for everyone.
Stage 1. Pre-Underwriting
- Submission from the client, with Application and Checklist of Documents
- The project goes through the Predictive Scoring Underwriting Model.
- Pre-Underwriting either sends the client a denial or a pre-approval letter
Stage 2. Underwriting
- Internal approval with partners
- Waiting for the client to send the rest of requested documentation required to get a term sheet
- After all the documents provided by the client, a term sheet will be issued.
Stage 3. Final Underwriting
- After term sheet is agreed upon by all parties, Final Underwriting will send out all additional needed documents that were not provided previously.
Stage 4. Contract Stage
- After Final Underwriting approves the Project Risk Management then takes over.
- Legal will start working on the loan agreements and documents.
- After contracts are agreed upon and signed by the client, risk management gives final approval.
- After all internal approvals from risk management, legal and Loan Documents are signed by all parties, Loan Documents are lodged with Custodian and Escrow Attorney.
Stage 5. Custodian Engagement
- References of previous clients, verification of Family Office and Custodian is done at this stage.
- Custodian sends a letter to the client, Escrow Attorney, and Capital Provider, confirming that all parties can perform, based on the signed Loan Agreements.
Stage 6. Closing
- Client follows instructions of the Escrow Attorney/Custodian and transfers Cash Collateral to the Custodian.
- Custodian confirms to the client, Escrow Attorney, and Capital Provider that all parties have completed their initial responsibilities.
Stage 7. Post-Closing
- Custodian/Capital Provider follows the draw schedule stated in the Loan Documents and provides the draws to the client.
- Capital Provider collects interest-only payments and principal payments based in the Loan Documents.