Descriptive Financing Memorandum

Once we determine an appropriate financial structure for your company, we will then complete a Financing memorandum. Financing memorandums describe key aspects of the company as well as provide an extensive analysis of the company’s historical and projected financial performance. Financing memorandums help lenders understand your company’s business, and help them analyze the company’s ability to repay the loan. Depending on the complexity and size of loan, the financing memorandum may be fairly simple or it may be complex. For example, subordinated debt lenders usually require detailed memorandums, because they need to assess the company’s ability to repay the loan as well as the company’s ability to compete and grow the business.

After completing the Financing memorandum, we then contact select lenders and discuss the company and loan opportunity. We will send some of the lenders copies of the Financing memorandum and follow up several days later. For lenders that express a strong interest in the company, we will arrange for them to meet and tour the company. These meetings will give the lenders a chance to learn more about the business, assess the management team, and validate their assessment of the company’s ability to repay the loan. After the meetings, the lenders will follow up with Alpha Omega and either provide a loan proposal or their reasons for declining the loan request. Oftentimes Alpha Omega will meet with the lenders in order to clarify or revise the terms.