Sourcing phase
ClubFunding will use a defined sourcing method:
The objective of ClubFunding is to find real estate professionals who have identified a project and need financing.
Channels
The search for property owners who may need financing via a participative financing campaign will be carried out via various channels:
- Incoming applications via the website directly
- Loyalty / Operators already financed and satisfied with our services
- Trade fairs / Forums
- Prospecting
Target companies with financing needs can contact ClubFunding directly using the application form available on the platform's website.
Project selection process
ClubFunding selects companies (public or private limited companies, limited liability companies that meet the legal requirements or foreign companies with an equivalent corporate form) that are eligible to issue debt securities (bonds) on the basis of pre-defined criteria published on its website.
The criteria used by ClubFunding to pre-select issuers are mainly as follows:
- Solvency and credit risk ;
- Company strategy and project quality;
- Profile and track record of management and, where applicable, shareholders
- Sector and activity analysis.
The selection process is carried out in 3 stages:
a) Screening based on preliminary criteria ;
b) Analysis, interview with the manager(s) and evaluation;
c) Selection committee.
a)Filtering based on "preliminary" criteria
The ClubFunding company will only consider projects from existing companies that have closed at least two financial years.
Then, a second filter is used to quickly eliminate projects of insufficient quality by taking the following elements into account:
- Company name and legal form
- Number of financial years closed
- SIREN number (or equivalent if a foreign company)
- Amount, duration and purpose of the financing requested.
Companies and projects that are outside the scope of the application will be excluded:
- Fancy or dubious projects.
- Newly created companies with inexperienced managers
- Turnover of less than €300,000;
- Amount to be financed in excess of €5,000,000;
- Unsuitable legal form.
b)Analysis, interview and evaluation
The first 2 criteria may be reviewed by ClubFunding management depending on changes in activity and regulations.
A financial analysis of the project and the operator is then carried out. This is supplemented by a management interview.
At the end of this study, each criterion is evaluated by ClubFunding on a scale of 0 (critical shortcomings) to 10 (excellent), and a list is drawn up of the main strengths and weaknesses of the project. Projects with one or more criteria rated at 0 are automatically rejected.
Each criterion is presented on a radar graph, illustrated here:
c)Selection Committee
The Selection Committee is made up of a minimum of 6 members chosen for their professional experience in the field of corporate finance or, more generally, financial analysis.
None of its members performs any operational functions for ClubFunding or receives any remuneration from it.
The role of the Selection Committee is to validate the projects selected by ClubFunding management before they are presented to investors on the platform.
The decision is taken by majority vote (5 votes for 1 possible abstention). Any vote against is eliminatory.
This decision is an advisory opinion, since the Selection Committee is made up of people from outside ClubFunding. The final decision to publish a project is taken by the management of ClubFunding, and in particular its director Mr David Perronin.
If the project is accepted by ClubFunding's General Management, it is then forwarded to the various operational teams.