The Process.

The Client provides an initial overview of the Funding Request for Newton Ventures to understand the opportunity, the required Investment Amount, the proposed use of funds, the available supporting information and the Client’s objectives.

Newton Ventures reviews the initial information to assess whether the Funding Request appears commercially viable and potentially suitable for Newton Ventures’ Funding Channels and/or Lenders/Investors.

Where appropriate, Newton Ventures arranges an initial conversation with the Client to discuss the Funding Request in further detail.

The purpose of this call is not only to discuss funding availability, but also to understand the Client’s business, use of funds, required funding structure, available security/collateral, current documentation, decision-making authority and timing expectations.

Following the initial call, Newton Ventures’ analyst undertakes a structured review of the Client’s available information — including the pitch deck, executive summary, business plan, financial model, historic financials, corporate documents, asset information, contracts, valuations, appraisals, permits, management biographies, data room materials and other supporting information relevant to the Funding Request.

The purpose of this stage is to assess whether the Funding Request can be presented credibly, identify gaps or inconsistencies, clarify the use of funds, review the proposed funding structure, consider the security or collateral position and determine whether the case is suitable for Credit File preparation and submission.

When Newton Ventures confirms it is in a position to submit the Funding Request for the purpose of obtaining the Letter of Engagement and Indicative Terms, the Client pays the applicable Commitment Fee.

Once the Commitment Fee has been received, Newton Ventures submits the Credit File and supporting information to the relevant Funding Channel and/or Lenders/Investors, for the purpose of obtaining the Letter of Engagement and Indicative Terms.

While the Letter of Engagement and Indicative Terms are being sought, Newton Ventures may provide the Client with a client-specific data room and related due diligence checklist or guidance notes — mirroring the type of data room the Client will be required to populate if the Client signs the Letter of Engagement and Indicative Terms and proceeds into full due diligence. This is not the same as the Funding Channel’s formal due diligence review, which takes place after the LoE & ITs have been signed and the required fees have been paid.

If indicative terms are secured, Newton Ventures will send the Letter of Engagement and Indicative Terms to the Client, together with a summary of the key commercial points and proposed deal structure.

The LoE & ITs document is issued only once Newton Ventures or one of its Funding Channels has secured indicative terms from at least one Lender/Investor. It is not final Binding Written Offer Terms — it is the formal gateway into full due diligence and underwriting.

The LoE & ITs will usually have a validity period of 14 calendar days. The Client should ensure that all required directors, shareholders, advisers and decision-makers are aligned before the LoE & ITs are issued so an informed decision can be made within the validity period.

Where appropriate, Newton Ventures will arrange a call between the Client and the relevant Funding Channel to discuss the LoE & ITs, understand the due diligence process and ask questions before deciding whether to proceed.

If the Client wishes to proceed, the Client signs the Letter of Engagement and Indicative Terms. Once countersigned by the relevant Funding Channel, invoices are issued for Newton Ventures’ Progression Fee and the Funding Channel’s Contribution Fee, in accordance with the relevant Client Fee Agreement and LoE & ITs.

Upon receipt of the required fees, the matter proceeds into full due diligence.

The Funding Channel will allocate a dedicated analyst to oversee the case, with director-level oversight where required. The Client will be provided with a standardised data room template to populate with the required information.

Newton Ventures assists during this stage by liaising between the Client and Funding Channel, reviewing the populated data room at a high level, coordinating calls and helping to ensure that information requests are dealt with efficiently.

This process continues until sufficient information has been collected and reviewed to allow the Funding Channel to prepare the Investment Memorandum to be sent to Lenders/Investors.

Once sufficient due diligence has been completed, the Funding Channel prepares the Investment Memorandum, summarising the Funding Request and supported by the Client’s populated data room.

A draft is sent to the Client for comment and sign-off before it is sent to Lenders/Investors.

Once the Client signs off the Investment Memorandum, the Funding Channel sends the IM and supporting data room to relevant Lenders/Investors, who typically review and may raise further questions or request clarification.

Newton Ventures and the Funding Channel assist in coordinating responses from the Client where required.

If a Lender/Investor is satisfied following review and due diligence, Binding Written Offer Terms may be produced for the Client’s consideration.

If the Client accepts the Binding Written Offer Terms, the matter proceeds to final legal documentation, including any required security, debenture, charge, pledge or other collateral arrangements. Funds are then disbursed in accordance with the agreed drawdown schedule.

Newton Ventures and the Funding Channel (where applicable) raise their respective Completion Fee invoices at completion or as otherwise agreed in the relevant documentation.