Loans on a Worldwide level are available for Projects:Any Type of Security - Any Type of Government Issued Note or Bond - Any Bank Instrument - Any Currency Bills or Notes - Virtually Any Form of Paper that can be Bought, Sold, or Traded.
Lenders require that the collateral for the loan exists in the form of negotiable instruments that are rated and traded in the secondary markets and that can be easily liquidated in the United States or other major secondary markets in Europe and Asia.
Funding sources consist of Private lenders, trusts, banks, Private placements and
Syndicated loans. We arrange all funds regardless of whether a project is involved.
Funds borrowed must first be secured by acceptable collateral offered to the lender ( meaning principal amount and interest should be secured through the pledging of “A” rated Commercial Papers, Bonds, Notes, bank or Insurance guarantee, etc.
· Some Examples Are:
US Currency (any denomination)
Foreign Currency (any denomination)
US T-Bills
US Zero Coupons
Government Medium Term Notes (MTNs)
Government Bonds, Coupons, or Certificates
German Bearer Bonds
Stocks or Stock Blocks
Government Promissory Notes
Bank Promissory Notes
Corporate Bonds, MTNs, and Promissory Notes
Certificate of Deposit (CD)
American Depository Receipts (ADRs)
Bank Guarantee (BG)
Letters of Credit (SBLC, ILC, LC, Pay Order)
Private Debt - Mortgages, Loans, Liens and Encumbrances
· All instruments pledged must meet the following criteria to qualify as acceptable
security.
a)must have been issued from a top 100 bank or institution,
b)must be transferable and negotiable,
c)must be bank-to-bank verifiable,
d)must be of non-criminal origin,
e)must be owned free and clear with no encumbrances,
f)must be fully legible with no alterations or editions,
g)actual instruments must be produced at closing and given to the escrow attorney
effecting closing.
Submission Procedure
Submission Form - this is a simple form from the borrower, signed, dated, stating the amount of funds to be borrowed, Project Details the required interest rate and for the required period how many years.
Funding Procedure
Usually the instrument will be screened to determine acceptability. Your Guarantee will be checked by contacting the bank officers for full verification. Remember the necessity of bank-to-bank SWIFT/Key-Tested Telex secure verification.
Usually after a copy of the instrument was obtained and verified with the bank's officials, a proof of funds will be done on a bank-to-bank basis. At the right time, the guarantor bank will be provided with the full swift and KTT coordinates and there will be a mutual secure confirmation of the funds and the guarantee.
After the signing of the contract to fund by the borrower, this process will be repeated when the funds are transferred to the borrower's account, and the guarantee is transferred to the lending bank's account. The a contract Offer to Fund will be issued if it's a legitimate instrument verifiable by Swift. If this is acceptable to the borrower, a bank-to-bank funding will take place, using the same secure method used to confirm the guarantee and the funds earlier.
International Construction Loans.
This program is used in the financial market place for clients who are seeking to fund a construction project (domestic or foreign) and wish to immediately obtain funding without the arduous underwriting process dictated by conventional lending
institutions.
Are you interested in a source of funds that offers the following:
· Minimal underwriting requirements,
· Interest rates of 2-3 points over the 6 month LIBOR during construction; 1-2 points over LIBOR for permanent financing.
· Funding for any feasible construction or rehab project in the world.
· No application fees of any kind.
· Funding amounts from $5,000,000 to $100,000,000.
· Funding in as little as four weeks from receipt of documentation..
· Funding for condominiums, income properties, residential developments, resorts, and much more!
Here are the requirements generally applicable:
· A complete project book providing a full description of the proposed project. If available, also forward a current feasibility study and appraisal.
· A Letter of Credit is required and may be supplied by our firm or by the client. If by the client then:
Client must produce a verifiable Standby Letter of Credit from a reputable domestic bank for 13% of the cost of construction or Financial Guarantee Bond from a A rated, or better insurer for 10% of the construction amount desired including closing fees of 4% to 6%. A bank will normally issue an “Intent to Issue” at no charge to client.
If asked to provide a Letter of Credit:
An average charge of 8% of the face amount of the Letter of Credit to arrange this instrument. This fee is payable within 3 days prior to issuance.
This program is very desirable for those wishing to limit the leverage on their assets and can be arranged within 10 days of initiating paperwork.
· No “Funds First” requests will be accepted.
· Usually no proposals from “Guaranty” companies or so-called “Credit Enhancement” entities wil be entertained.
· Developer will be required to supply Performance and Completion Bonds. Local architects may be contracted with for inspections for fund disbursements.
· For consideration of a clients’ request the following is required:
A. Assurance that the client can produce one of the instruments as indicated above.
The simplest means to accomplish this is with the “Intent to Issue” bank letter or enlisting services to provide the Letter of Credit.
B. Completion of Non Disclosure-Non Circumvent and Fee Agreements to be forwarded to the client upon receipt of complete project information as indicated above.
Submitting brokers must have their own fee agreements stipulating payment to them from proceeds after the close of the transaction or in some other form mutually acceptable to the broker and client.
Upon acceptable receipt of the above items a Letter of Commitment will be issued subject to a Letter of Credit, or Financial Guarantee Bond. Upon execution of the Letter of Commitment and verification/approval of the guarantee instrument, funds will generally be available within thirty days.
Example
Client, has a project requiring 100,000,000 USD. Client has 15,000,000 USD available in capital.
Lending Program Steps
1. Submission Form
The Submission Form is a simple 4 page form, dealing mainly with contact information and your project and we allow you to specify your ideal terms. In addition, please e-mail your completed Business plan including, Proforma, Resume’s, Marketing Plan, Exit Strategy and Evidence of funds.
2. Underwriting Process - Please allow 48-72
Banking hours for Underwriting
A conference call will be scheduled to review the project in detail. Depending on the outcome of that conference call, you may be given the clear to wire and we will draw up our intent to fund memorandum within 24 hours.
3. Application Approved –Intent to Fund
Memorandum sent out(72 Banking hours)
Applicants are approved based upon the strength of the project and of the principals.
Since this loan is a non-recourse to the project, XXX will carefully select its borrowers based on the experience of the principals, their financial strength, and their clear ability to execute this project to completion. 15% Equity contribution
is required for all loans both debt and equity financed. This will be made available to XXX to leverage a financial instrument and create the assets needed to finance your project. We are concerned with credit, financials, future values, income verification, and background checks however, conventional underwriting guidelines
do not apply.
4. Approval Executed by Borrower (5 Banking days)
The Approval will outline the process and describe the responsibilities that each party is held to. It also contracts the scope of the transaction as well as the end terms for the project.
Terms of the loan are as follows:
Deposit – 15% equity contribution needed
Pre-paid Interest – 12 Months - 36 month
No payments Due for first year
Interest Rate: 6.5% - 7.75%
Amortization – 30 Year fixed
Interest Only Payments
10 Year Balloon
No Pre-payment penalty.
5. Account Funded (3 Banking days)
The attorney escrow account is funded with 15% of the total loan amount requested. All fees are earned to brokers out of the proceeds of the loan. The agreed upon amount of capital contribution that was placed with XXX and is fully refundable at the close of the transaction(initial 1.5M).
6. Financial Instrument Secured (20 Banking Days)
Our costs to use an instrument varies from 4%-18% of the face amount of the financial instrument. All of the underwriting is done in-house by one of our underwriters and we make the final decisions whether to fund your project before any approvals are issued.
Per the instrument provider’s procedures the instrument is issued and placed on
Euroclear/DTC for viewing/blocking. Some providers will use 4% others will charge 18% of the face amount of the instrument to be secured for their costs relating to issuing. In our example 15% secures the face value of the instrument which is then presented to the lender to attain the highest LTV upon monetization of the instrument. Once the instrument has been issued and (normally 15 Banking days), the instrument is placed in escrow to be loaned upon by our credit facility.
7. Monetization (15 Banking Days)
Our Credit Facility monetizes (loans upon) the financial instrument with the funds placed into XXX’s Account. The Credit Facility completes the transaction within 15 banking days. The remainder of the funds are released back to the XXX upon monetization and subsequently returned to the principal of the project upon funding.
8. Funds Disbursed for your Project (3 Banking Days)
The funds are disbursed to you for your project as per the Approval and the note. All funds not disbursed to you for your project directly, but are disbursed to the XXX to mitigate project risk and attain profitability. The Instrument is taken out in the name of XXX making the borrower not liable retiring the instrument upon expiration. The XXX will retire the instrument after a year and one day, however may have the option to extend the Instrument for additional premium. This means that with any over funded amounts, XXX is able to introduce this capital to its trade platform for investment purposes.
This is how we are able to remain profitable and offer such competitive terms to commercial ventures. As you can see, through significant leverage, a truly unique funding program has been created. Please allow 60 days for project to be funded.