LOI and Commitment

VII has an expansive broker and intermediary network who deliver large volumes of international and commercial loan requests monthly. In order to qualify any loan request VII has set in place several steps and requirements that qualify and quantify all project scenarios presented.   

During the initial course of our process, clients may receive an outline and invoice document after a conference call which will contain a range of rates, terms, and basic conditions for the client to review. An application fee is always required, upfront, with any non-conforming commercial loan request. As a lender we do not charge underwriting fees up front. As any company with employees we incur substantial costs for work performed on a file once it has started, even if a loan does not fund. Based on this important fact we need to qualify every client as to their financial stability, the project merits, and the return on investment. These are the basic principles of most lenders.

The outline and invoice allows us to start the conversation and explore the loan and borrower merits before committing further resources. This also allows the borrower to see what can be expected and be able to decide if this is the right course of action.

A Commitment or Term Sheet (depending on the file) is usually issued after VII is satisfied with the basic overall investigation and full review of the client’s financial ability and willingness to continue. The Commitment will have matching rate, terms; conditions to follow for an effective evaluation and also have a third-party online valuation, assessment fee quoted by any one of our third-party associations. These vary based on site location loan request and complexity of loan.

Proceeding to the Commitment stage means the client has satisfactorily accepted and is committed to our process. Once the Commitment is accepted and executed the process will commence. Third-party assest management and inspection will be issued during the “commitment process”. An invoice and contract for execution will be sent. Once this is paid an asset team will be assembled to inspect and meet with the principles. The client must pay the Third-Party fees beforehand and must follow the processed outlined. Dates and time frames agreeable with the client’s schedule for a smooth streamline process.

After due diligence is completed via the “Commitment process”, the file will be transferred to the Executive Committee for final review before starting any restructuring or a Private Placement. The client is required to pay for all third-party, valuations, assessments, inspections and legal fees for the “commitment process and private placement as well as with any restructuring after due diligence is completed for any unforeseen risks identified as determined by VII.