Our Process
Our financing transaction process is designed to elicit the best rates and terms available from the marketplace. This process, requiring meaningful engagement on the part of you, our client, is the reason we achieve the results we do.
This process typically takes between three and six months depending on the complexity of the transaction as well as other variables, such as getting approval from your nonprofit's board. A timeline for your transaction will be outlined in your engagement.
Initial
Engagement
Information
Gathering
Loan File Review &
Summarization
Description of
Client’s Business
Private Placement
Memorandum
Marketing to
Investors
Letter of
Intent
Documentation &
Closing
Initial Engagement
After initial discussions, Krambo creates a document that sets forth what we are engaged to do, the timeframe within which we have to do it, our terms of exclusivity, and our compensation.
Information Gathering
Krambo submits to you a request for any necessary information that is not already publicly available and that will enable us to prepare your private placement memorandum.
Loan File Review & Summarization
Krambo places a request for all loan file and payment information on each loan being sold or securitized, as well as reviews and remediates any deficiencies to ensure each loan is in marketable condition.
Description of Client’s Business
Krambo completes a comprehensive description of your business or organization to enable a credit analyst to make an informed credit decision.
Private Placement Memorandum (PPM)
This is a document Krambo submits to prospective institutional investors that includes a summary of the terms of the proposed transaction, a comprehensive description of your business, and detailed information about the subject matter (for example, the loans being sold or securitized). This PPM is approved by you, our client, before submission.
Marketing to Investors
Together we agree on an interest rate or discount rate at which the transaction will be offered after which Krambo markets the transaction to prospective investors.
Letter of Intent
Once a prospective investor agrees to participate in the proposed transaction, Krambo prepares a letter of intent that confirms basic terms including rate, dollar amount, and closing date, and also refers to terms outlined in the PPM.
Documentation and Closing
Krambo designates special counsel to document and close the transaction. Special counsel will document the transaction in accordance with the terms set forth in the PPM and represent the prospective investors. Special counsel's fees, as well as Krambo’s fees, are paid by the client upon closing of the transaction and transfer of proceeds to the client.
The information on this website is not an offer to sell or a solicitation of an offer to buy any security, nor shall any such security be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale may not be lawfully made.