Many projects will receive a mixture of funding and finance. The exact amount of each component will vary and depend on many factors inclusive of our own risk analysis and that of our monetary partners.
How we operate and what we provide was designed by taking the best and most advantageous aspects of Venture Capital, Private Equity, Angel Investment and Lending which we then apply to a set of criteria and due diligence checklist that our monetary partners have agreed to deliver upon.
We share the risks with our project clients by placing our own reputation, combination assets and expertise on the table in favour of our project client. This is the reason why we have certain prerequisites such as the use of Xero accounting and our level of board level representation. We do not micro manage the projects.
Project Funding & Financing
Funding (equity investment) versus Financing (loan) depends on project strength and criteria
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Project Funding means - Equity Investment, the direct injection of project funds for shareholding in the project.
The project must qualify for funding as per specific criteria and the project must reside within one of our industries of interest. The project Directors / representatives must then physically meet our team. That may occur in one of our office locations or, at the client's expense, the project client's site may be most desirable.
Once a project applicant is approved in principle, we conduct all the due diligence we can on the project, the people (internal and external), whether there is a government involvement or approvals / licenses and we scruitinise the project's documentation, it's Executive Summary, Business Plan, Financial Forecast and Appendix information.
We then form a recommendation and submit it to our funding team beginning with Avid Capital. Once we receive their approval in principle, we shall deliver a term sheet and contract to our project client. All clients will be monitored via Xero, assigned Project Managers and our representatives at board level.
Once all of the aforementioned steps have been accepted by all parties therein, we sign off on all required inclusive of a funding drawdown schedule (deliverance of agreed capital quarterly).
Project Financing means - Lending with interest, secured over assets purchased by the project.
Where a project does not qualify for funding, they may apply for financing where the project does not necessarily need to reside within our industries of interest. However, they must satisfy the assessment team that the project's profitability will be strong (of a greater focus than funds via our funding route).
Ardent will only recommend a project financing deal upon physically meeting with the project's principals and conducting the same level of due diligence as required when otherwise funding a project. We must scruitinise all documentation and feel confident in the project team's ability to execute, not misappropriate and ensure assets are appropriately secured as agreed.
Project financing rates will be determined on a case by case basis and are expected to be circa +/- 5% per annum (base rate). Additional fees / costs may apply. Financing will also be delivered as it is required and not in one lump sum and will be monitored via Xero. We may or may not request representation on the board.
Once all parties therein are confident and interested in contracting, we shall issue a loan agreement and begin by delivering the first instalment similar to a funding drawdown schedule.
When we deliver project funding and/or financing in favour of your project, we are partnering with you. By partnering with you, we want and need performance to be the absolute best it can be. This makes sense, right?
Therefore, we expect transparent communication and business dealings, respectful and diligent work ethics, pride and attention to detail, methodical problem solving attitudes and a positive, professional and successful mindset.
We will join your project board and remain there until any early or later determined exit. We will support your project internally and externally. We will provide you with credible partners, assist you with suppliers and exports, international relations and banking.
Your success is our success and vice versa.
We support philanthropic initiatives in two ways:
We may, on occasion and as per the strength of our balance sheet, provide donations, reduced interest loans and/or funding to projects that are not-for-profit, that are community focused, in line with our moral purpose and is environmentally sustainable and capable of being economically self sufficient in the near future.
We may support a project client's desire to donate, sponsor and/or provide products or services to a charitable purpose in exchange for fair recognition (branding, marketing), provided the organisation and/or end recipient is a cause that is in line with the project's moral purpose and is environmentally sustainable and capable of being economically self sufficient in the near future.
Funding (equity) and/or Financing (lending) options apply to all projects, whether private or via a Public / Private Partnership ("PPP"). It is important that each project and/or PPP weigh up the commercial options upon application.
Repayment is in the form of dividends or principal plus interest repayments and both options are secured over certain project assets to ensure fiscal stability and performance of project by its team and board.