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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 LIBOR + 2.
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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. Ensuring the deposit is fully protected is the key. Our lender has invested significant effort and expense to structure the program. Working with reputable law firm(s) they draft deposit agreement(s) to govern the deposit in escrow, which is then further guaranteed by a safekeeping receipt (SKR) issued from the largest security house(s) in the world: Brinks or G4S. We rely on this 100% guarantee structure and not on typical retail lending due diligence practices to bring the confidence necessary to enter this wholesale lending program that is now available to direct borrowers and their investors.
This unconventional approach delivers the security and the comfort required by borrowers and investors alike. Ensuring the deposit is fully protected is the key. Our lender has invested significant effort and expense to structure the program. Working with reputable law firm(s) they draft deposit agreement(s) to govern the deposit in escrow, which is then further guaranteed by a safekeeping receipt (SKR) issued from the largest security house(s) in the world: Brinks or G4S. We rely on this 100% guarantee structure and not on typical retail lending due diligence practices to bring the confidence necessary to enter this wholesale lending program that is now available to direct borrowers and their investors.
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Working with highly respected business partners like PWC, Brinks and G4S to administer and secure their program, it has been intentionally designed it to remove all risk from the transaction by providing a 100% guarantee on the deposit The deposit is not depleted or encumbered in any way and is not used as collateral for the loan. It always belongs to the borrower, it is never under the lender's control and it is returned after the loan funds have been fully disbursed, having never left escrow. The deposit is either spent into the project as the final 20% of the budget or returned to the originating account, if using a 25% deposit for 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 100% safekeeping security provided by Brinks or G4S is in a league all its own. Your deposit is held in 3rd party escrow is not collateral and never under the lender’s control. 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 Libor+2. The interest is paid quarterly and must be kept up to date. The lender offers flexible repayment terms including the option to convert to long term mortgage at the end of the term which the lender 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. The borrower's deposit is 100% guaranteed, held in a 3rd party escrow with a US Law Firm (for North American borrowers) or an independent central bank approved fiduciary for others. Further, as an additional security measure over and above the protection provided by escrow insurance, the lender provides a security house guarantee in the form of safekeeping receipt (SKR) issued by either Brinks or G4S that protects the deposit until it is safely returned to the originating account. With the loan is fully disbursed, the borrower's capital is returned, 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.
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Drop us a line and we'll respond promptly.
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