4X Loan

Introducing The Global 4X Loan Program

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.

4X Loan Highlights

Loan is structured around your 20% capital.
Deposits of $10M USD or higher may be able to be held in the borrower's existing bank account. The funds must remain unencumbered and undepleted while the loan is being disbursed. These funds are available for your use again, after the drawdown of funds is complete.
Borrowers with smaller loans where the 20% deposit is less than $10M will be required to escrow their deposits with HSBC London.
48 month term; Interest only with quarterly payments. Non-Recourse. With ability to fund the full interest reserve from the loan.
Any business at any stage in any industry can qualify. Credit scores are not relevant.

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 bank account with the lender's compliance officer being added to the account with view only access to the account while the loan is being disbursed. It is required that the initial deposit funds remain undepleted and unencumbered while the loan is being funded and it is necessary to check the account regularly to ensure this. If the funds were to be depleted or encumbered this would result in a default and the loan would be called. For smaller loans where the 20% deposit is under $10M, the borrower will be required to escrow their funds with HSBC London.

Providing the borrower the opportunity to keep their capital in their own bank account gives both the borrower and their investors the confidence necessary to enter this wholesale lending program. It is important to note that we rely on the structure of the transaction to provide borrower's the confidence they need KNOWING that their capital is 100% secure. As a result we do not waste costly and endless hours supporting typical retail lending due diligence, seeing as the justification for due diligence is risk mitigation.

As you can see, this loan makes it possible for companies to achieve the right mix of debt and equity and in today's climate, there is truly no better way to capitalize a company.

Summary of the 4X Loan

Unique Structure

The 4X program's ability to fund $5M to $5B with its wholesale 3.5% interest rate; its flexible repayment options; its interest only structure; coupled with the fact that it is non-recourse AND the borrower's may be able to keep their capital (serving as their 20% deposit) in their own existing bank account, puts this in a league all its own.

Incredible Terms

Every loan starts with an initial 20% deposit. Note: the minimum deposit is $1M USD.
Default term is 48 months (up to 72 months possible).
Interest only, with quarterly payments.
No personal or corporate guarantees.
There is a General Security Agreement "GSA" on the project itself.
Any business at any stage in any industry can qualify.
Credit scores are not relevant.
No prepayment penalties.
Very flexible repayment options.
Wholesale rate is 3.5% or LIBOR +2 (whichever is higher).

Here's how it works:

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 is four times the deposit amount. This is a non-recourse loan with no personal or corporate guarantees. The loan is secured by the project the funds are being spent into. This is an interest only structure with a 48 month term standard at the wholesale interest rate of 3.5% or Libor+2 (whichever is higher at close). The interest is paid quarterly and must be kept up to date and an interest reserve can be built into the loan. The lender offers flexible repayment terms including the option to convert to permanent financing with them at the end of the term.

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. If there was a default on the loan the lender would foreclose on the project.

For larger projects with deposits of $10M USD or more the borrower may be able to keep their capital serving as their 20% deposit in their own existing bank account. For smaller loans where the 20% deposit is less than $10M USD, the borrower is required to escrow their funds with HSBC London. The deposit is held in escrow while the loan is being funded and upon the loan being fully disbursed, the borrower's capital is returned to the account of origin, having never left 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

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 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 STEP

If you can confirm you have 20% for your deposit (which is a minimum $1M USD), then you are welcome to download the Loan Summary Request forms and MNDA provided here and send us a complete package for review.

We will be back in touch to discuss and upon full review of your materials, if the lender likes the project, we will provide you with a Letter of Intent (LOI) expressing the lender's interest in funding your loan and work with you from there to complete the intake package.

Submit Loan Request

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