1You apply to FREDA.
Fill in and submit the Application letter and the Application form. The Application letter and the Application form are available at the FREDA Office or can be downloaded from FREDA’s web page.
2
FREDA’s investment officer verifies preliminary eligibility of your project.:
Upon receipt of the application forms FREDA’s investment officer will verify if you are eligible for the Fund’s financing and whether the financing requested is within allowable limits. The companies, eligible for the Fund’s financing and the limits defined for different financing instruments of the Fund are presented in the “Investments” section of the FREDA’s web page. You will be notified on the decision regarding the preliminary eligibility within a short period after the acceptance of the application forms. In case of negative conclusion your application will be denied.
Positive conclusion on the preliminary eligibility of the project. Yes , No
3
FREDA’s investment officer visits your business premises, collects required information and documents.
In case of positive conclusion on the preliminary eligibility of your project FREDA’s investment officer collects all the required information and documents, visits your business premises to gain complete understanding of your current and planned activities and operations.
4
Preliminary project appraisal, feasibility check, final conclusion.
The project’s preliminary feasibility check is implemented based on the information and documents collected during the previous step and the conclusion on the preliminary feasibility check is compiled. In case of negative conclusion your application will be denied.
Positive conclusion. Yes,No
5
Due diligence report.
In case of positive conclusion on the preliminary feasibility check, FREDA’s investment officer makes a Due-diligence study and compiles a Due-diligence report. The Due-diligence study mainly includes analysis of the historic and planned financial data, review of key agreements and contracts, business/development plan, analysis of management and legal aspects. In case of negative Due-diligence report your application will be denied.
Positive conclusion. Yes, No
6
Business valuation , preparation of the Business valuation report.
In case of positive Due-diligence report the Fund determines the estimated market value of your business. Business valuation report is compiled. In case of negative Business valuation report your application will be denied.
7
Preparation of the Investment plan (IP) and presentation of IP to IC.
In case of positive Business valuation report FREDA’s investment officer prepares an Investment plan which is presented for the Investment Committee’s (IC) review and approval. In case of IC’s negative feedback on the Investment plan your application will be denied.
Positive feedback received from IC. Yes, No
8
Approval and disbursement of financing.
In case of IC’s positive feedback on the Investment plan the financing is approved and disbursed.
9
Monitoring.
During whole period of cooperation the Fund on a frequent basis performs monitoring of your business operations and of the purposeful use of the financing provided to your business.
10
Dividend payments and debt repayments.
You are making dividend payments and debt repayments in accordance with the repayment schedules set force in the agreements.
11
Repurchase of shares from FREDA.
FREDA divests from the project by selling back its shares in average after 5-7 years.
