As MDV’s core business is project financing, and any project worth its salt entails a delivery deadline, hence timely financing in most cases will make or break the success of a project .
Now as a customer with a project in hand and needing the funds to kick start it without further delay, here are some useful tips to help you smoothen and speed up the disbursement process. As they say, its all in the cash flow.
Start early by getting involved even before the financing is approved by negotiating for terms that you are able to comply and amount of financing that is adequate by your means. No point getting a financing facility where most of the terms are out of your reach, looks good in paper only but of no practical use . Imagine getting a Letter of Offer but unable to drawdown because you are not able to fulfil the pre-disbursement conditions. To be more exact, these pre-disbursement conditions are known as “Conditions Precedent” in the Letter of Offer. Not only that, you must also be able to fulfil the disbursement conditions and any other security arrangement stipulated in the Letter of Offer before any disbursement be made possible.
Once your financing is approved, and a Letter of Offer has been issued, do take your time to go through the Letter of Offer thoroughly, and if there is any ambiguity or terms that you are not sure, please do seek clarification from your Account Manager. They are more than willing to assist.
At this point too, initiate your initial discussion with the disbursement team (who are your care taker for fund utilization) and ask them in detail the required documents to be submitted in order for disbursement to smoothly take place.
The disbursement team is also the party you should first contact if at any time you feel that your disbursement is not proceeding according to your expectation. They are your first line of contact for any disbursement related issue.
Do allow the disbursement team sufficient and reasonable time to process your disbursement as stated in the loan agreements. After all, this is a project financing of which its related documents and technical aspect might be complicated and lengthy, and in some instances may need verifications by certain parties.
Loan service shall be professionally conducted. All the terms shall be honoured. It must only be utilized for the specifically approved purpose, and repayments shall be promptly served. Covenants shall always be fulfilled by the customers as part of the obligations according to the agreed terms. Please extend your full cooperation instead of avoiding your financier should your facility turns into delinquent or defaulted. In this difficult situation, our door is open for negotiation, be it for indulgence, retiming or restructuring, contingent upon merit of each cases.
Lastly, the most important value. Please uphold our mutual relationships based on integrity and honesty. Do not compromise it in any situation. Do not offer any personal favour, be it tangible or intangible.
– Engku Husain Hazmi | Senior Vice President, Credit Management Division