Transparency, understandability, and openness are the basic principles that guide the Monethera platform. We have always strived to be as open as possible for our clients, both for investors in the first place, but also for borrowers. We want to pay special attention to the fact that we continue to improve our service. All our improvements are aimed at making you feel safe, investing in projects of interest to you without worrying about possible problems.
The investment market is very dependent on the mood of the players, their confidence, and a sense of reliability. There are many unscrupulous players who, through speculation, can undermine the stability of the investment market. In order to minimize the impact of this factor, we decided to publish a detailed due diligence process through which absolutely all projects without exception pass before being approved and posted on our platform. We are confident that investors who carefully read this article will understand the level of verification involved.
The Monethera team hopes that by publishing this information, we will give answers to many questions from our current and future partners.
Here you have the list of procedures to be followed, and documents that must be provided by the borrower for due diligence processes for the subsequent receipt of credit on the Monethera platform:
First of all, it is necessary to provide the full name of the company, the registration number, the actual and legal address of registration (if different), as well as the addresses of the company branches.
The second step is to enter contact information on beneficiaries and data on members of the board.
It’s obligatory to specify a list of company bank accounts, indicate the main activity of the company, areas of work and products.
It is essential to provide information about the leading suppliers, target audiences, and buyers of products.
If at the time of applying for financial support to Monethera the company has credit obligations to other entities or financial institutions, this information must be indicated.
In any case, to get a positive response on the application for funding, the borrower needs to write in detail the history of loan obligations for the last five years.
When an entrepreneur or a company decides to request external funding, first of all, it is necessary to indicate the purpose of obtaining a loan and the requested amount. It’s essential to specify in detail the type of loan, the required amount of the external financing, the terms for obtaining the loan, its final repayment, and the monthly schedule of payments on loan obligations.
It’s obligatory to indicate the source of loan repayment. In other words, to describe in detail the planned financial receipts and guarantees that will be used to repay the loan.
The borrower can choose one of the following options to secure the loan (to guarantee it). One of the ways to secure a loan may be real estate.
The borrower must provide:
the full address, description of the property, cadastral numbers, and the preliminary estimated value of the declared property.
Vehicles also can perform as a guarantee. It’s essential to specify the year of manufacture of the car and the estimated market value at the time of filing the loan application.
If the borrower is on the board of another company, owns shares in enterprises or various bonds, all items specified can act as security for its loan application.
Equipment that the borrower uses in the production process (specifying the type, estimated market value at the time of filing the loan application).
Commercial assets - fixed assets, receivables.
Future assets may also serve as a guarantee.
In order to be allowed to pass the due diligence process, the company must provide the list of required documents:
1. Financial Statements (with detailed explications).
2. Operational balance sheet for current year.
3. List of main assets.
4. Liabilities List.
5. Bank account statements for the last 6 months in XLS format.
6. Main contracts with debtors.
7. Main contracts with creditors.
Any business is an idea that is embodied by a team of like-minded people, which follows a written plan. We ask our potential borrowers to provide us with a detailed business plan in order to study it, to understand how realistic it is, and to make a final decision based on our analysis. Information about the purpose of using a loan should be included in the business plan. It is imperative to clearly state what the investment will be spent on. Transparency and maximum openness increase the chances of resolving the issue in favor of the borrower.
It is necessary to indicate the planned costs for the implementation of the project, and indicate the amount and addressees and attach the concluded existing contract. It’s essential to write down a payment schedule with the dates on which payments will be made (for example, monthly, on the first day of the month, etc.)
It’s mandatory to indicate a planned monthly cash flow to have a worked out business plan in which the expenses will be written out monthly, and most importantly, the expected income after the start of the project. It’s recommended to write down the forecast taking into consideration the provided financing. It’s obligatory to indicate terms of payments, deliveries, storage of goods, etc., specify the method and conditions of payment, ways of sending and delivery of goods, the accumulation of raw materials, etc.
Every borrower must remember that a well thought out step-by-step business plan is the key to the success of the project.
Our team of specialists will conduct a detailed audit of the used funds by verifying:
Bank account statements per month that must be provided by the borrower in XLS format.
Invoices, acts and other documents that confirm that payments were made.
Work completion statements.
Warehouse balances (optional).
Monthly changes in receivables.
Physical inspection of objects (stocks of goods, inventories, warehouses, equipment, condition of collateral, work performed, etc.)
Monthly operating balances, tax debt checks.
Checking new customers and suppliers.
The Monethera team is doing everything possible so that the investor has as much information as possible about the borrower in free and convenient access. We are convinced that having seen all the verification measures to which we subject credit applicants, each investor will be confident in the reliability and security of their investments. Invest with us, invest safely.