About Our Multiples Based Loan ProgramOur multiples based loan program is based on "multiples" of the borrower's "Initial Funds Deposit". The project owner is required to bring a minimum of $10M USD to the transaction, whether it's their own capital or raised using an investor or lender. We refer to this qualifying capital as the "initial funds deposit" or "deposit". Your capital can be position in cash, crypto or using a top tier GoldSKR. The loan is always a multiple of the realized amount of the deposit, and multiples range from 1X to 4X, with 3X being the most common and 4X being reserved only for very large deposits of $100M or higher.
This private wealth lending platform has been offering loans to select clients since 2005 funding a wide variety of projects (including retail lenders). Projects types vary widely; everything from Commercial Real Estate Development, Technology Startups, Hotels and Resorts, Mining, Infrastructure Projects and more. This program can also be used for New Construction, Working Capital (business expansion), Acquisition Rollups and Refinancing.
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The 4X Loan
2024 Update
We use SOFR "Secured Overnight Financing Rate" as the benchmark for interest rates in our multiple based loan program which is lending at SOFR + 2.5%. Initial Funds Deposits are a necessary to qualify for this program and without bringing capital to the transaction a loan is not possible. The minimum amount for an Initial Funds Deposit is $10M. 2024 introduced a simplified safekeeping method for all client capital in our 4X Loan. Deposits can held with your attorney in his IOLTA account or in an SPV bank account. It is still possible to position a deposit using an SBLC, BG, Top 5 Crypto or Gold SKR. |
Highlights
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How it works:
The methodology of this program is tied to the Initial Funds Deposit. When capital is positioned in favour of our loan program, the lending group's bank will extend them credit (multiples of the deposit) on their credit lines. It is this credit expansion that furnishes the loan. Note - there are no direct tie between the borrower and his deposit and the lender's credit lines. Our lending group simply accesses their own credit lines and use the credit available to them to fund a private loan between two private entities (the lender and the borrower).
If your initial funds have been provided by a 3rd party investor or lender who wants those funds returned to them prior to the repayment of your loan, then you can structure your loan application package in such a manner that you can repay the investor from your loan disbursements. Note that the multiple that you will be approved for may not necessarily be the same as the multiple that you've requested, so this will be a dynamic exercise.
There are a few different methods available to borrowers (or their investors) that ensure the initial funds are positioned appropriately throughout the loan term. All deposit options fully guarantee the safety of the Depositor's capital.
If your initial funds have been provided by a 3rd party investor or lender who wants those funds returned to them prior to the repayment of your loan, then you can structure your loan application package in such a manner that you can repay the investor from your loan disbursements. Note that the multiple that you will be approved for may not necessarily be the same as the multiple that you've requested, so this will be a dynamic exercise.
There are a few different methods available to borrowers (or their investors) that ensure the initial funds are positioned appropriately throughout the loan term. All deposit options fully guarantee the safety of the Depositor's capital.
Loan Terms
- Interest Only Loan at SOFR+2.5%
- Standard loan term is 48 months
- Borrowers must have a minimum of $10M already raised to serve as their "Initial Funds Deposit"
- In addition to using cash, an SBLC, BG, Crypto or Gold SKR can be used to position an Initial Funds Deposit.
- The loan is fully funded in 10 months
- This is a non-recourse loan with no personal or corporate guarantees required
- Borrower is able to capitalize interest and fees
- No Upfront Fees
- Minimum closing costs ($25,000) paid prior to preparing final contracts
- Origination Fee 3% of loan
- Success Fee will never exceed 3%
Make Contact. Learn More. Get Funded.
As mentioned the key element of our lending programs is the requirement for an Initial Funds Deposit. It is the existence of the borrower's project, coupled with those initial funds being set aside in favour of the program, that makes the multiples based lending program possible.
The only requirement of those initial funds is that they remain in safekeeping throughout the loan term. If those funds were to become otherwise encumbered or depleted in any way, it would violate compliance requirements and cause the loan to collapse. As a result, to ensure compliance with all banking regulations as well as similar requirements from the lending group's insurance partners, there are specific safekeeping methods available to guarantee that the deposits funds will remain positioned appropriately throughout the loan. IOLTA ACCOUNT METHOD - MINIMUM $10M; Initial Funds Deposit remains with LawyerThe borrower uses their own attorney who holds the clients Initial Deposit Funds in their IOLTA account. The client pays the fees their attorney charges for this service.
NEW SPV BANK ACCOUNT METHOD - MINIMUM $10M; Initial Funds Deposit remains in Borrower's Bank account.SBLC or BG METHOD – MINIMUM $10M; Initial Funds Deposit remains in Depositor's bank account and a SBLC / BG / CD is issued by their (top tier) bank.Utilizing this process we can ONLY work with Top Tier Banks in highly stable banking jurisdictions.
Under this method the Depositor's (borrower/investors) capital will remain in their bank account, and that bank would issue to the Bond Group's assigned bank a “banking instrument” such as a “SBLC” (Standby Letter of Credit) or “BG” (Bank Guarantee). Keep in mind that the issuing bank will charge fees (often substantial ones) to create, issue, and eventually recall and liquidate these instruments, and those costs will be fully the responsibility of the Depositor. Both banks (issuing and receiving) will set up the transaction in as way that the SBLC/BG will be held by the receiving bank until the loan is repaid in full; at the end of the term it will be returned in full value and without encumbrance. This will likely require the Depositor to obtain extensions on the instrument used. SBLCs/BGs are typically discounted by the receiving bank (as the funds are not in their institution). In most cases the value of this instrument will be discounted to 80% of the face value, and the amount of the loan multiples based on the discounted amount. The discounted amount will also be bonded via the same banks/securities companies, so the discounted amount will also receive the monthly payout of their 5% annual interest on the discounted amount. Please note: this process is meant for clients that have a high level of sophistication in banking and finance, and who will deal directly with bankers who have extensive experience in setting up such instruments. |
How to Engage |
We need a complete Intake Package from you if you want to engage with our programs. The focus of our intake process is to verify the Proof Of Funds (POF) for the initial funds deposit, as well as the Borrower (CIS - customer information sheet including scan of passport) and then to review the project itself with a 2 page Project Summary, your desired draw schedule and a signed NDA.
With that Intake Package we will verify the POF and CIS and review the project overview and pre-approve the loan if we want to proceed. At that point, with the pre-approval if you want to formally apply for the loan we will provide you with our Finder’s and Financial Agreement for signature and with the agreement executed, work with you to complete and submit your full application package. Get in touch if this structure aligns with your project's funding needs.
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