Credit requests reviewed before they reach your committee

Pre-screening

We don't send raw applications. Every company first goes through our Rayos X diagnosis: debt service capacity, collateral, existing loans, credit history and use of proceeds.

• If the company doesn't qualify, we don't present it and we explain what it is missing.
• We propose the product, amount and term based on the use of the money and the source of repayment.
• We present each deal only to the institutions we choose for that case, with the client's express authorization. We never distribute files in bulk.

Traceable documents

We receive documents directly from the client. Every figure in the file shows the document and page it comes from.

• We cross-check figures across sources: financial statements, account statements, tax returns and existing loan agreements.
• If two sources don't match, we flag it in writing in the file.
• When the client provides its electronic tax invoices (CFDI), we reconcile invoiced amounts against its financial statements and note the difference.
• We never alter the client's documents. We deliver a true copy of what we receive.

Human verification of every figure

We use artificial-intelligence tools to read and organize documents. No figure goes into a file until a person has checked it against its source.

• The analysis is done on Novación's own computers.
• The analyst's notes distinguish what is documented from what is an estimate.

Identity, shareholders and powers

Before presenting, we review who the company is, who controls it and who can sign.

• Articles of incorporation, amendments and current shareholder structure.
• Identification of the main shareholders, legal representatives and, where applicable, guarantors and joint obligors.
• Powers of attorney in force and their scope for the act to be signed: administration, ownership and execution of negotiable instruments.
• Tax status certificate and tax compliance opinion.

This review does not replace the customer identification and anti-money-laundering procedures each institution performs under its regulation.

Collateral and liens

We document every asset offered as collateral, and its registry status, before proposing it.

• Real estate: deeds and lien certificate from the Public Property Registry.
• Movable assets: search in the Sole Registry of Movable Collateral (RUG).
• List of existing loans and the collateral already securing them, to identify priority of liens.

Disclosed fees

We charge the client a success fee, only if the loan is disbursed, agreed in writing from the start. If an independent broker takes part, their share is also disclosed to the client in writing.

• If an institution pays us anything for a deal, the client knows in writing.
• If your institution asks, we tell you how we are paid on that deal.
• When an independent broker takes part, the client knows and authorizes it in writing.

What each file contains

The order follows the way a credit team reviews an application. Each section lists its sources.

1. 1Cover letter: use of proceeds, amount, term, proposed product and source of repayment.
2. 2Annual and interim financial statements, with analysis and financial ratios.
3. 3Cash flow and debt service capacity.
4. 4Schedule of existing loans, with account statements and loan summaries.
5. 5Collateral offered, with its documentation and registry status.
6. 6Corporate documents, IDs and powers of attorney, with our observations.
7. 7The client's authorization to share its information with your institution.

What we don't do

• We don't present deals without the client's written authorization.
• We don't guarantee the client approval, amount or rate.
• We don't pull the client's credit history on our own.
• We don't ask for passwords or access to bank or tax-authority (SAT) accounts.
• We don't replace your institution's credit analysis or compliance procedures.

Would your institution like to receive deals that meet this standard?

Write to us at eduardo_farca@novacioncredito.com with the subject “Lenders”. We will tell you which deals we handle and how we work.