With increasing volatility in global financial markets, many businesses lack the financial backing or drive to be sustainable. WGA takes the initiative in extending credit lines necessary for your business to push through the slow period and gain stability in operations and services.
There are no geographical boundaries to our services. WGA can serve you right where you are, in any part of the globe. Some of the diverse sectors in which WGA has provided Debt services are Real Estate, Oil & Gas, Mining, Industrial Parks, Steel, Cement, Agriculture, Infrastructure, Energy, Healthcare and Townships.
WGA provides one of the most business-friendly and transparent loans because it is the direct source of the funds. Please find below a list of the steps or stages carried out from the conduct of the first business meeting until the dispatch of the loan:
Firstly, WGA would require the business proposal from the client. Once WGAâ€™s senior management expresses positive interest in the proposal, a meeting is scheduled at WGAâ€™s head office in Holland between the main promoters of the company (client) and WGA President.
If both the parties are prima-facie satisfied with each other, an engagement agreement, mutual non-disclosure agreement and authorization letter to conduct due diligence will be signed.
WGA will begin its due diligence on the company, a process that may take between 6 and 8 weeks. This client assessment is a standard requirement of our corporate policy and its objective is to understand your position in order to serve you better.
Upon successful completion of our due diligence, a sanction letter will be issued within 2 weeks, with all the details of the amount sanctioned as well as the interest rate, the date of registration, and other terms and conditions.
Following the sanction letter, the loan will be registered in two weeks time, in the Holland.
The disbursement of the loan will take place two weeks after the registration of the loan.
Generally, the main terms of the loan facility are as follows:
Minimum amount that should be borrowed is USD 25 Million.
Tenure: 3, 5 and 7 years
Interest is payable every six months. Principal is due in one bullet payment at the end of the term.
WGA would have first lien of the assets/projects of the company.
What are the main terms of the loan, interest rate, security, LTV ratio?
The main terms of the loan are related to the viability of the business proposal as well as the due diligence conducted by WGA. We seek to ensure that the income and profit generation of the client would adequately satisfy our loan repayment.
Depending on the geographical area as well as other criteria, the interest rate would be 5-7%.
We would require collateral security of assets just like any other standard funding institute. Our standard of evaluating assets is quite competitive.
The LTV ratio would be 80%. However, this is just an indicative figure and WGA can go up to 110-120% LTV.
We provide senior debts only. Since our rates and processes are one of the most competitive and innovative, we expect our clients to have only WGA as its lending party and back it up with exclusivity contracts.
In case of any previous or existing loans from other parties, WGA will help you to swap these loans at a much competitive rate than the current loan.
WGA is not a commission agent, as we do not believe in taking undue advantage of your necessity. We are investors and our asset management service or activity is clearly limited solely to our shareholders .
Can you provide the names of the current clients with whom you are dealing?
Due to a non-disclosure agreement with which we are bound to our clients, we cannot reveal our borrowers. This is in the best interest of our clients, to protect their privacy. Under WGAâ€™s terms of confidentiality, we will not discuss any of our past, present or future clients.
We welcome clients to conduct due diligence on WGA as well as take legal opinion of experts before applying.
What is the time limit for debt financing and equity financing?
If both the parties are prima-facie satisfied with each other, an engagement agreement, mutual non-disclosure agreement and authorization letter to conduct due diligence are signed. It can take 14 to 16 weeks from this point to get the loan drawn down.
However, in some cases the time period maybe much shorter if all procedures are straightforward. Contrarily, in case of legal or geographical complications, the time period may extend to more than 16 weeks.
Why and how do you provide funds at such low rates?
WGA believes in providing innovative financing solutions. This means doing things differently so as to not burden our borrowers with heavy interest rates. We understand the pressure that is already on todayâ€™s businesses and industries. Conventional banks and financing institutions are not helping the situation with their cumbersome loan policies and a pathetic attitude to the borrowerâ€™s plight.
This is primarily due to their rigid approach to funding, which does not consider the human factor and stresses more on punishing the defaulters rather than helping them to avoid defaulting.
WGA provides direct funding to the borrowers without any intermediaries in the process. Unlike banks and financing institutions, we are not encumbered by heavy infrastructural overheads. We are therefore able to provide funds at much lower interest rates. Our philosophy is to manage the funds of our shareholders and invest in deserving needs such as maybe yours.