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Introducing The Global 4X Loan Program |
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This wholesale lending program has privately funded billions of dollars over the past 15 years across a variety of industries including Cannabis, Real Estate Development, Technology, Infrastructure, Hotel and Resort Development with a wide array of business initiatives. As long as you have a viable project, with 20% of your budget raised for your project you can qualify for a credit facility that is four times your deposit amount at the wholesale rate of 3.5% or LIBOR + 2, whichever is higher.
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4X Loan Highlights |
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Interested? Read on...
Wholesale Debt Financing
This wholesale lending program has been operating since 2005 and is now available to direct borrowers. Unlike traditional banks, conventional lenders or venture capitalists, this is a privately owned and operated wealth lending program. Forget what you know about typical banking or conventional loans, this is definitely not that.
This unconventional approach delivers the security and the comfort required by borrowers and investors alike by offering borrowers with $10M USD deposits to keep their 20% deposit in their own account with the lender's compliance officer having read only access to the account while the loan is being disbursed. For deposits under $10M the funds will be protected in escrow with a prominent US law firm. We rely on the structure of the transaction to provide the confidence in the program and not on typical retail lending due diligence practices. Providing the opportunity to keep your deposit funds in your own account gives borrowers and their investor's the confidence necessary to enter this wholesale lending program.
This unconventional approach delivers the security and the comfort required by borrowers and investors alike by offering borrowers with $10M USD deposits to keep their 20% deposit in their own account with the lender's compliance officer having read only access to the account while the loan is being disbursed. For deposits under $10M the funds will be protected in escrow with a prominent US law firm. We rely on the structure of the transaction to provide the confidence in the program and not on typical retail lending due diligence practices. Providing the opportunity to keep your deposit funds in your own account gives borrowers and their investor's the confidence necessary to enter this wholesale lending program.
Working with highly respected business partners, our lender has intentionally designed in their program to remove all risk from the transaction. It is required that the deposit is not depleted or encumbered in any way and it is not used as collateral for the loan. It remains in the borrower's account and is released after the loan funds have been fully disbursed. The deposit is either spent into the project as the final 20% of the budget or if using a 25% deposit provides 100% project funding.
As you can see, this loan makes it possible for companies to achieve the right mix of debt and equity. There is truly no better way to capitalize a company.
As you can see, this loan makes it possible for companies to achieve the right mix of debt and equity. There is truly no better way to capitalize a company.
Summary of the 4X Loan
Unique StructureThis program with its wholesale interest rates, its flexible repayment options, its interest only structure, coupled with the borrower being able to keep the deposit in their own account, puts it in a league all its own. The program has been purposefully designed to remove all risk from the transaction for the borrower. This lending program is best in class on the global financing market.
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Incredible Terms
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Here's how it works: |
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The borrower needs a deposit of at least 20% of the project budget in cash to trigger the loan. Minimum deposit is $1M USD. The lender will provide the other 80%. In other words, the credit facility or loan that is made available is four times the deposit amount. This is a non-recourse loan with no personal or corporate guarantees. The loan is interest only with a 48 month term standard (extensions are possible) at the wholesale interest rate of 3.5% or Libor+2 (whichever is higher). The interest is paid quarterly and must be kept up to date. The lender offers flexible repayment terms including the option to convert to permanent financing at the end of the term which they will hold.
There are no prepayment penalties. The lender takes a general security agreement (GSA) against the project being developed, whether a physical or IP asset and is typically done on the LLC applying for the loan. For larger projects with deposits of $10M USD or more the borrower keeps the deposit in their own account with a UK bank. For smaller projects, with deposits less than $10M USD, deposits are held in a 3rd party escrow with a US Law Firm (for North American borrowers) or an independent central bank approved fiduciary for others. The deposit is held in escrow while the loan is being funded and with the loan fully disbursed, the borrower's capital is returned from escrow, 30 days after the final draw on the draw schedule. |
4X FUNDINGS
See why we say the 4X Loan can fund loans that just wouldn't even be considered anywhere else
Business Expansion 4X Funding Story
Michigan Based Cannabis Grower Leverages 4X Loan Providing Their Initial Deposit In COLD HARD CASH
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As cannabis continues to be legalized at the State level across the US, the market opportunity is exploding. However, due to the fact that Cannabis is not legalized federally significant banking and financing challenges exist across the industry amid fears their legal profits could at a future time be reclassified as "proceeds of crime". As a result, many cannabis operators are hesitant to bank their profits, instead holding onto immense amounts of cash. Leveraging large amounts of cash to access growth capital for your business is not a typical approach to commercial financing.
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But for this cannabis grower it was the perfect answer. Using their profits (being stored in cash) they successfully leveraged the 4X loan. Our funder, being both a private lender and a problem solver figured out a way to get it done. In this unique scenario, the lender dispatched a secured armored car service to collect millions for a cash deposit for placement as the loan loss reserve. With the cash deposited in escrow, the borrower received a four times credit facility of the deposited amount. With their $20M+, they are expanding grow operations to several new states.
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They began receiving tranches in Q4 of 2018 and now with the loan fully disbursed, the client has the loan loss reserve returned to them - which had some significant benefits of its own. Thanks to this unique program, this Michigan grower is capitalizing on their expansion plans and their business is blooming.
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Luxury Development 4X Funding Story
MidWestern Developer Afforded A Second Opportunity at Success
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When personal guarantees are required as part of institutional loans, occasionally the worst case scenario occurs. In the case of one Ohio developer that lost his development company and most of his personal assets through devastating bankruptcies in mid-2017, there seemed to be no possibility to rebuild previous success. Though still in possession of business plans for several $50M+ developments, bankruptcies and the terrible personal credit rating of the project owner prevented any chance of him attaining bank loans to build them. By making use of our funder's unique approach, the only collateral that needed to be pledged was the development project itself - no additional personal or corporate guarantees were necessary. With the 4X Loan Program the borrower's personal credit history became a non-issue. As long as the business plan was solid, the financing was to be made available. All that was required was for the project to find an equity partner that could contribute the initial 20% of the total budget;
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by placing that amount in a third party escrow as the Loan Loss Reserve, the project could achieve a loan four times that amount to complete the budget. A new SPV was set up to be the owner of the project and the borrower of record, and in Q1 2019 the equity partner was secured and the development approved for financing. Despite the banks being unwilling to consider lending to the project due to the credit history of the SPV owner, our funder is providing the bulk of the financing and monthly oversight to ensure everything remains on track. This luxury development is scheduled to be completed Q3 of 2020 and this midwestern developer is bing afforded a second opportunity at success.
You can see clearly from this example that our funder has the ability to finance loans that just wouldn't even be considered anywhere else... |
NEXT STEP
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If you can confirm you have 20% for your deposit (which must be a minimum $1M USD), then download the Loan Request and the NDA forms here.
Complete both documents and send them back to us along with your business plan and pro-forma (3-5 year revenue projections). We will review your request and if pre-qualified will be back in touch with a Letter of Intent (LOI) to fund your loan from the lender. |
loanrequest@weLLcomecapitaL.com
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Make Contact. Learn More. Get Funded.
Have Questions?
Drop us a line and we'll respond promptly.
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