|
Introducing The Global 4X Loan Program |
|
This wholesale lending program has been operating for more than 15 years and has privately funded a variety of projects across multiple industries from Commercial Real Estate and Technology Startups to Cannabis and Hotel Resort Development. This program can be used for New Construction, Working Capital and even Refinancing.
As long as you have a viable project, with 20% or 25% of the budget raised (in cash) 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). |
4X Loan Highlights |
Interested? Read on.
|
|
Forget what you know about typical banking or conventional loans, this is DEFINITELY not that.
Unlike traditional banking, conventional lending or venture capital solutions; this is a privately owned and operated wealth lending platform. These programs are possible because our lending group enjoys very privileged relationships with their banking partners. The mechanics behind this transaction are sophisticated and rely on international finance rules which are governed by Central Banking Compliance. It is important to know this is NOT a retail lending experience. We rely on the security built into the structure of the transaction to provide borrowers with the confidence necessary to proceed. And as a result we simply do not waste costly and endless hours supporting typical retail lending due diligence practices, like giving potential borrowers access to our valuable clients. |
Summary of the 4X Loan |
|
Incredible Terms
|
Here's how it works: |
|
The loan is made possible because of the borrower’s initial funds deposit. The borrower needs to have a deposit of at least 20% of the project budget in cash. The minimum deposit possible is $1M USD which would generate a loan of $4M. The lender provides a loan that is 80% of the project budget and the borrower’s 20% deposit provides the final 20% required to complete the project.
20% deposit x 4 = 80% + 20% deposit - 100% of funding required If the borrower is using a third party to raise their initial deposit funds, it makes sense to for them to use a 25% deposit rather than the typical 20%. This allows the borrower to return the deposit in full to where it came from after a year and they can also include the financing expense associated with the deposit as part of their budget. By factoring in the carrying costs for the deposit, they can pay the provider monthly interest out of their monthly draws. 25% x 4 = 100% and the 25% is returned to the provider after a year. NOTE: whether you use a 20% or a 25% deposit, the credit facility is ALWAYS four times the deposit amount. |
The Borrower's Funds Are Protected: |
|
There are two methods for safekeeping your deposit, one is with an established US Investment Bank that our lending group has pre-cleared with the Compliance Board where your funds will be held in your own account at the US Federal Reserve Bank. This account is 100% insured (dollar for dollar). You’ll be contacted by the Banker to handle the setting up of your account when the loan deal reaches that point in the process. There is a second option for deposits OVER $10M that allows the borrower to keep the funds in their own bank. There is a specific protocol required to exercise this option. Please see the program FAQ Q17 for more details on the various SafeKeeping methods for the "initial funds deposit".
|
The 4X Loan can fund loans that just wouldn't be considered anywhere else"
Read our Funding Stories
Michigan Based Cannabis Grower Leverages 4X Loan Providing Their Initial Deposit In COLD HARD CASH |
|
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.
|
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.
|
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.
|
Luxury Real Estate Development 4X Funding Story |
MidWestern Developer Afforded A Second Opportunity at Success
|
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;
|
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 STEPS |
|
If you can confirm you have access to a 20% or 25% deposit (the minimum deposit amount is $1,000,000 USD) you are welcome to download and complete the Loan Summary Request forms provided here along with our mutual NDA and submit your project for review.
We will examine your materials and be back in touch with you and upon the preliminary review of your loan request documents, if the lender likes the project, they will provide you with a Letter of Interest (LOI) outlining the terms of funding your loan. From here we will work with you to execute our agreements and help you complete and assemble the formal loan application and intake package. |
