Additional financing needs related to growth (investments and working capital) possibly in combination with a strengthening of the risk-bearing capital, acquisition financing, and refinancing of existing debts. No dividend payments, losses and/or redemption of shareholder loans are financed.
We lend to European-based companies. The money may be used to the benefit of a company’s operations, but this does not mean that it is only for 'domestic' use. Uses to the benefit of international growth are a fine lending rationale also.
NEOS often works together with other financiers, including banks. Timely engagement and alignment with other parties increase the likelihood of a successful transaction. On one occasion we take the lead, in other cases, it is the business partner or entrepreneur. Transparency and managing expectations are important.
We provide a maximum of €10 million per loan. If companies require more financing, we can provide for this by means of follow-up financing. Our maximum of €10 million is linked to the specific loan.
NEOS performs all relevant functions during the lending process. The loan is legally provided from the prevailing regulatory qualified entity. The administrative organisation is outsourced to a specialised financial services company.
The pre-selection takes place through a short conversation between a NEOS credit manager and the business partner about the case, in connection with a simple financial rating (based on 20 standard financial figures) of the company.
In principle, the loan may not be submitted in tranches. It is, however, possible to provide multiple loans to a company, whereby the money is made available at the time it is needed.
Yes, NEOS works with a standard report that can be delivered in Excel. The standard reporting formats are available on our website.
NEOS monitors on a quarterly basis.
In principle, the substantive evaluation of the request resides with our credit managers. The decision to succeed or not is made as early in the process as possible, so the probability of success is high once we proceed, and a loan application is submitted to the credit committee. This has proven to work very well in our experience. However, it is never possible to provide an exact success rate for any type of request. Per case, a credit manager will be transparent towards an entrepreneur and business partner if he/she deems there to be a significant No-Go chance.
This differs per case. In some cases, we finance pari passu with banks; in other cases, the bank has certain securities (e.g. mortgage, right of pledge on debtors/stocks) that take precedence over our position.
We only finance 'companies'. We do not finance 'one-man businesses' or individuals/private persons.
A company will not be provided with a loan if it operates in the following industries: (1) the production of and trade in tobacco and distilled alcoholic beverages and related products; (2) the production of and trade in weapons and ammunition of any kind, except where such activities are part of or accessory to European Union policies; (3) casinos and equivalent enterprises and gambling; (4) pornography; (5) research, development or technical applications relating to electronic data programmes or solutions which aim to support the activity referred to above or under (3) and (4); (6) research, development or technical applications relating to electronic data programmes or solutions that are intended to enable illegally entering into electronic data networks, or downloading electronic data; (7) real estate development activities; (8) bars and stand-alone restaurants; and (9) financial and insurance activities.
In principle, the repayment schedule of the loan is fixed for the term. We value clarity. We can discuss a case-by-case basis with a business partner and entrepreneur if changes occur in the credit requirement of the company.
The maximum duration of a loan is 7 years.
Legally, it is the company’s obligation. However, we value the continued involvement of a business partner. In principle, therefore, we also expect the business partner to play a role in the monitoring.