Frequently Asked Questions

1.  Who is Nola Capital?
Nola Capital is a privately held corporate finance firm established in 1978 and we are specialists in alternative capital
financing, distressed capital and non-conforming financial solutions.  We have an international clientele in a broad
spectrum of industries.  Depending upon a particular project, we may act as a funder, a table underwriter or a capital
partner when funding private or public projects.  When acting as a funder, we finance a project with or without the
participation of industry partners.  When acting as a table underwriter, we conduct the due diligence required to
analyze and underwrite a project and work with an industry partner to fund the project.  When acting as a capital
partner, we use our own funds along with an industry partner to fund a project.

2.  You have much more information on your website than other firms.  Why?
Because it saves time.  People can see what we do, what our general guidelines are and what they need to be able to
do in order to complete a funding.  We do not want to waste anyone's time or money.  We want to get projects
successfully funded.

3.  Where do you prefer your clients' projects be located?
We fund alternative capital projects in the United States.  In some instances we will fund projects outside these areas,
however, we do not accept any projects in Russia, Eastern Europe, Africa, Mexico or Canada.  Distressed funding is
also done only in the U.S.

4.  What do you do?
We direct capital into projects that can achieve specific objectives.  Only after a project receives our firm's approval is
an industry partner or our own resources used to complete the financing process.

5.  Who do you work for?
Our clients are institutions and companies that are seeking capital.

6.  Where do your clients come from?
Our firm works almost exclusively with existing clients but we do accept 1-2 high quality clients each year in the
industries we serve.  Most of our new clients come to us by referral from existing clients.  We also receive new clients
from accountants, attorneys, commercial bankers, corporate officers, industry partners and other professionals
aware of our services.  

7.  What specific benefits are there to working with Nola Capital?
We provide our clients with two huge advantages.  First, they can shift over to us a great deal of the time and effort
associated with arranging the financing necessary to complete a particular project.  And secondly, we assist the client
in structuring the deal in a manner that best meets everyone’s objectives.

8.  What do you require for an initial review of a project?
We are very selective in what projects we will accept.  A thorough study will be made of a project before we will
consider entering into an Engagement Agreement.  A well written executive summary and information proving up the
project's assets are required for our initial review.  

9.  Will you consider projects that have been turned down by other funders?
Yes.  We will require an explanation of what the reasons were for you being turned down and who has previously
looked at your project but we understand that even some good projects have problems getting funded.

10.  Do you do a lot of due diligence?
Yes.  We can not help you if you are not able to provide complete information on a timely basis.  We also require
information be presented in an organized, professional package supported by high quality data that does not require
an inordinate amount of time trying to put all the pieces together and backed up with a commitment from the client
that they will stay focused.  We have a great deal of respect for our clients and their time and we ask them to respect
the work load we are carrying too.   

11.  Do you ever provide venture capital?
Yes.  However, startups requiring equity capital and/or debt financing must be very strong candidates for alternative
capital financing.

12.  What type of compensation do you receive at closing?
We charge industry-standard cash fees and we frequently take a portion of our compensation as a revenue
participation in the project.

13.  Are you saying that your firm may be willing to accept the risk that a project will be a successful
venture after it is funded?
Yes, absolutely.

14.  Why are you willing to take these risks?
First, it gives us credibility that we are serious about our ability to perform. Second, it assures clients that we are only
interested in high quality projects because our livelihood is dependent on their success.  And third, we can increase our
long-term revenues by participating in a venture after it is funded.

15. What costs are there prior to closing a financing?
Your attorney's fees, engineering studies, accounting fees, due diligence costs, retainers, permitting, travel costs, etc.
need to be paid during the underwriting process in order to conform to various protocols and regulations.  These
types of costs are refundable out of the financing.

16. Do you provide an estimation of what these costs will be before starting the funding process?
Yes.  We can give you a general idea of what the costs would be for completing a funding on your particular project.

17. When do you get paid your success fee?
It is paid at the time a client’s project is funded.

18. What size of project do you prefer?
Most of our financings run between $20 Million and $100 Million.  We prefer a minimum of $20 Million but we will go
as low as $10 Million in special circumstances.  There is no practical maximum.  If there is going to be more than one
round of financing needed we will also take that into consideration.

19. What types of projects are you interested in doing?
We will look at any project that is legal and makes good business sense.  The project may even be in an area
currently out of favor for traditional financing such as mining, energy, acquisitions, expansions, additional working
capital, bankruptcy reorganizations, turn-arounds, etc.

20. What types of projects are you not interested in doing?
Projects that are politically controversial or have an over reliance on subsidies for profitability.

21. How would we get started with you?
You first need to educate us on the size and type of project you are interested in getting financed.  Assuming we felt
that we could be successful meeting your objectives, we would enter into an Engagement Agreement with you and
proceed with the financing  process.  All information submitted to us must be in an electronic format.  We do not
accept fax copies or hard copies of documents.  All information must be emailed only in Word, PDF, Excel or
PowerPoint.  Uncommon file extensions that require specialized software will be rejected because they are too difficult
to share.

22. Do you help revise our package if necessary?
We can make recommendations that will help you get it into a format that is acceptable for inclusion in the Master File
which is used for underwriting the financing request.  You should also rely on your accountant for pertinent tax advice
and your attorney for pertinent legal advice.

23. Can you assist us in negotiations with our current lenders?
Yes.  Performing this service is sometimes possible in situations where the client is in a bind because their current
lender is pressuring them to make substantial changes in their current facility or completely pay it off.  The capital
markets can sometimes be accessed and the existing facility be extinguished with a new round of financing.

24. What accounting requirements do I have after I have received financing?
You will be required to maintain financial statements prepared in accordance with FASB standards.

25. Do you provide a confidentiality agreement?
It is no one else's business what you are doing and you deserve an ironclad assurance that your business information
will remain absolutely confidential.   Your business with us is strictly private; our confidentiality agreement and our
Engagement Agreement both prohibit us from disclosing your name and information to anyone else.

26. How do you prefer to communicate with your clients?
Email is the best way to communicate because it is faster than trying to track someone down on a telephone and
there is a record of what was discussed.  Every client should have their own dedicated Skype address available for
conference calls.

27. Will you work with brokers?
We no longer accept any projects that are referred to us by brokers.  All projects must be submitted directly from the
principals.  

Q&A 2.5.2018
Nola Capital Corporation
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