How it works

You can make decisions on:

– The need for legal check of title establishing documents of a potential borrower (Entrepreneur),

– The need to check the potential borrower and/or the company’s founders by the Security Service,

– The need for a financial analysis of the company and/or a provided feasibility study / a business plan project,

– Use of a contractual framework for transactions that we provide and that is developed by lawyers with experience in the banking industry for over 15 years,

– Notarization of transactions,

– The need for registration of pledge agreements of movable property / mortgage, surety agreements,

– Full or partial insurance of the pledged property,

– Control over the targeted use of investment provided,

– Quarterly financial analysis of the borrower (Entrepreneur).

 

In the section “Documents” we offer standard contract developed by the company’s lawyers:

– Loan agreement;

– Guarantee Agreement;

– The contract of pledge of property rights;

– Pledge Agreement of the vehicle;

– The contract of pledge of goods in circulation.

 

The model contracts developed by the company’s lawyers comply with the principles of justice, integrity and reasonable terms. In other words, in the contracts there are no traps and pitfalls for entrepreneurs and investors, everything is transparent.

In case of disputes between entrepreneurs and investors regarding the timely repayment of the loan (credit), the contract includes an arbitration clause that allows to avoid delaying debt collection lawsuits, to minimize financial costs and to significantly reduce the deadlines to recover.

Arbitration court is a non-state independent entity that is formed according to agreement or relevant decision of engaged physical and/or legal entities as provided in present law for settlement of disputes that arise from civil and economic legal relationships.

The entire lending process in banks includes the following steps:

  1. Application for borrowing (filling in the questionnaire)
  2. Formation of a package of documents for the credit department audit, legal department, Security and Risk Department
  3. Analysis of the possibility of adopting the proposed provision
  4. Valuation and liquidity assessment of potential pledge by Department of Collateral or by a certified evaluation company
  5. Obtaining a positive opinion from all the Bank’s departments
  6. Consideration of the  issuance of funds by the credit committee of the bank
  7. Obtaining the original documents for the registration of pledged security (an extract from the register of encumbrances of movable and / or immovable property)
  8. Preparation of legal contractual base by Legal Department
  9. Signing of agreements, notarization of the deal
  10. Property Insurance against all risks
  11. Provision of funds to the current account of the Borrower
  12. Control of target use of funds
  13. Quarterly check the financial condition of the Borrower and security safety

So, the issuance of credit is a sequential process consisting of several stages.

Potential borrowers are not often happy with such a complex procedure of registration of credit due to the fact that this process takes a lot of time (a month and a half), and significantly increases the cost of borrowing.

In this respect, Direct Investments provide entrepreneurs and investors with an opportunity to decide how many steps they need to make a deal.