The 1X Loan
When you have the capital to do your own project, but what you really need is to mitigate the risk: the 1X Loan is your answer.
This 1X Loan program offers borrowers a matching loan and secures their capital using a federally regulated coupon bond. The minimum loan amount is equal to the amount entered into the bond and depending on the underwriting of the project you are looking to fund, it could result in an offer that exceeds that amount as well.. This is determined on a case by case basis.
The matching loan is paid out at 5% per month and is fully disbursed in 20 months. The 5% per month is repayable AND in addition to the loan, the client also receives a Coupon of 7% per year that is NOT repayable. The minimum to enter the bond is approximately $1.1M USD, the equivalent of €1M euros or higher in €500,000 increments.
This 1X Loan program offers borrowers a matching loan and secures their capital using a federally regulated coupon bond. The minimum loan amount is equal to the amount entered into the bond and depending on the underwriting of the project you are looking to fund, it could result in an offer that exceeds that amount as well.. This is determined on a case by case basis.
The matching loan is paid out at 5% per month and is fully disbursed in 20 months. The 5% per month is repayable AND in addition to the loan, the client also receives a Coupon of 7% per year that is NOT repayable. The minimum to enter the bond is approximately $1.1M USD, the equivalent of €1M euros or higher in €500,000 increments.
The Benefits of The 1X Loan
First Major Benefit - Your Project Gets Funded and You Don't Risk Anything.
When you have the capital but want to mitigate your risk, what option do you have? If you have a $5M project and you have $5M in cash, typically you could just fund your project yourself with your own capital and that would be that. In this scenario, your capital is fully at risk. If the project were to fail, you would lose your $5M or some significant part of it.
But what if you used the 1X Loan program to finance your project? Then your project is completed with the loan funds and because the loan is secured by the project, you never have to risk any of your capital. In this way, if the project were to fail, the lender has assumed the risk and takes the loss for the project's inability to repay the loan. The funds you've pledged to the bond are never encumbered and are NOT collateral for the loan. And you would always have your original $5M safe in the bond.
When you have the capital but want to mitigate your risk, what option do you have? If you have a $5M project and you have $5M in cash, typically you could just fund your project yourself with your own capital and that would be that. In this scenario, your capital is fully at risk. If the project were to fail, you would lose your $5M or some significant part of it.
But what if you used the 1X Loan program to finance your project? Then your project is completed with the loan funds and because the loan is secured by the project, you never have to risk any of your capital. In this way, if the project were to fail, the lender has assumed the risk and takes the loss for the project's inability to repay the loan. The funds you've pledged to the bond are never encumbered and are NOT collateral for the loan. And you would always have your original $5M safe in the bond.
Second Major Benefit - With the 7% per year bond coupon, the loan is basically FREE MONEY.
If you (as the project owner) puts your $5M into the bond to get the $5M loan, there are costs that you will have to cover to get the $5M loan in place. You will have to pay the 3% lending fee ($150,000), the 3% finder's fee ($150,000) and 3.5% interest ($175,000 a year, once fully disbursed) as well as the caretaker fee ($60,000 annually) and the closing costs (around $25,000). So across 4 years the project will pay between $1M and $1.1M in loan setup and carrying costs. But the bond coupon will pay you 7% annually on their initial funds of $5M, or $350,000 per year. Over the 4 year period that is a total of $1.4M in non-recourse payouts. So you can see, in this financing scenario, the project ends up several hundred thousand dollars AHEAD because of the bond is covering all your financing costs, with some left over.
If you (as the project owner) puts your $5M into the bond to get the $5M loan, there are costs that you will have to cover to get the $5M loan in place. You will have to pay the 3% lending fee ($150,000), the 3% finder's fee ($150,000) and 3.5% interest ($175,000 a year, once fully disbursed) as well as the caretaker fee ($60,000 annually) and the closing costs (around $25,000). So across 4 years the project will pay between $1M and $1.1M in loan setup and carrying costs. But the bond coupon will pay you 7% annually on their initial funds of $5M, or $350,000 per year. Over the 4 year period that is a total of $1.4M in non-recourse payouts. So you can see, in this financing scenario, the project ends up several hundred thousand dollars AHEAD because of the bond is covering all your financing costs, with some left over.
Third Major Benefit - If you have the amount you need in crypto you can use that to generate the loan
You can still hold you crypto, pledge it to our bond and get your 1X Loan in cash. And the 7% per year interest from the bond coupon, can be paid out to you in either Cash OR Crypto according to your preference. Note: this will require you to move your crypto to the bank's digital wallet. The loan structure itself operates the same, whether you're pledging cash or crypto to the bond.
You can still hold you crypto, pledge it to our bond and get your 1X Loan in cash. And the 7% per year interest from the bond coupon, can be paid out to you in either Cash OR Crypto according to your preference. Note: this will require you to move your crypto to the bank's digital wallet. The loan structure itself operates the same, whether you're pledging cash or crypto to the bond.
ABOUT THE BOND
The bond is with an Australian Banking & Investment Corporation co-owned by one of the top 25 banks in the world. The investment bank is licensed through the Australian Financial Services License (AFSL, license number 3XXXX2) and regulated by the Australian Securities and Investments Commission (ASIC). Due to Banking Compliance Restrictions we are not able to name the Bank handling the pledging of your funds, the Coupon Bond, and the payment of your Interest on a public website. However this will be disclosed to you early in the process as you will be dealing directly with the bond issuer.
The Loan & Bonding Processes
The minimum to enter the bond is $1.1M US or the equivalent of €1M EUR or higher, in €500,000 increments.
To facilitate both the bond and the loan process simultaneously, we need our agreements to be executed (our MNDA and our Finder's Agreement) as well as the information requirements for the bank which includes your full contact details and a current POF (Proof of Funds). We work with you to prepare the loan application and intake package and in parallel you will be working directly with the Bond Issuer, who handles the bonding process with you from beginning to end, providing you all the information and related bond documentation and answering all your bond related questions. Of course, you will complete your own due diligence and be able to vet all aspects of the bank and the bond prior to any execution.
Once we have completed and submitted the loan application and intake package , our lending group will process your application and generate a term sheet for your review and signature..
If you are interested in this opportunity, please get in touch.
To facilitate both the bond and the loan process simultaneously, we need our agreements to be executed (our MNDA and our Finder's Agreement) as well as the information requirements for the bank which includes your full contact details and a current POF (Proof of Funds). We work with you to prepare the loan application and intake package and in parallel you will be working directly with the Bond Issuer, who handles the bonding process with you from beginning to end, providing you all the information and related bond documentation and answering all your bond related questions. Of course, you will complete your own due diligence and be able to vet all aspects of the bank and the bond prior to any execution.
Once we have completed and submitted the loan application and intake package , our lending group will process your application and generate a term sheet for your review and signature..
If you are interested in this opportunity, please get in touch.
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