Bonnie Walker
  • Home
  • weLLcome capitaL
  • 4X Loan
  • SBLC Funding



​4X Loan

Picture

Introducing The Global 4X Loan Program

This wholesale lending program has privately funded a variety of projects across multiple industries from Commercial Real Estate and Technology Startups to Cannabis and Hotel Resort Development. It 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 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.

4X Loan Highlights

  • Non-Recourse loan. No Personal or Corporate Guarantees
  • ​Standard loan term is 48 months (extensions are possible)
  • This is an Interest only loan and you can capitalize the interest and fees
  • ​Borrower must have 20% or 25% of the capital already raised (in cash)
  • Any business, at any stage, in any industry, can qualify
  • Credit scores are not relevant
  • Strong business plan required​​​

​​Interested? Read on.
Picture



​Wholesale Debt Financing

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 of the very privileged relationship our lending group enjoys with their banking partners and they offer borrowers an unconventional approach to business loans and project financing.
The detailed mechanics behind this transaction are very sophisticated and rely on international high finance rules governend by central banking compliance requirements.

It is important to know that this is NOT a retail lending experience. We rely on the security that is built into the structure of the transaction to provide borrowers with the confidence necessary to proceed. 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

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 borrower's may be able to keep their capital (serving as their initial funds deposit) in their own bank account; puts this loan in a league all its own.  
Picture

Incredible Terms

  • ​​​​ Every loan starts with the borrower providing an initial funds deposit of either 20% or 25% of the loan amount in cash
  • The minimum deposit amount is $1M USD. There is no maximum.
  • The borrower’s funds are governed by a Deposit Agreement, the term of the agreement is 366 days, after which the funds are released
  • ​The Deposit is NOT collateral for the project and may be sourced via a third party (lender or investor)
  • There is a General Security Agreement "GSA" (Lien) on the project being developed, whether that is physical assets or Intellectual Property. The GSA is typically done on the LLC or SPV applying for the loan so that if there was a default on the loan, the lender would foreclose on the project itself​​
  • 48 Months, Interest Only
  • 3.5% or LIBOR +2 (whichever is higher)
  • No prepayment penalties
  • Very flexible repayment options and lender can convert the loan to permanent financing at a very attractive rate 
Download the 4X Loan Terms and Conditions Here

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 a couple of methods for handling the borrower’s initial deposit funds that are dependent on the size of the loan and the required deposit amount. 

For larger projects with deposits funds of $10M USD or more, the borrower may be able to keep their capital in an approved top tier bank account which they control. When the borrower is able to keep their initial funds deposit in their own account it is their Banker that provides the assurances that their funds are secure based on the required multi-signature set up of the bank account.

For smaller loans where the deposit is less than $10M USD, the borrower is required to escrow their funds. Outside of North America, the initial deposit funds are escrowed at HSBC London.

In North American deposits less than $10M USD are held in the safekeeping account of a US-based commercial bank, fully regulated as a bank by the BSA (Bank Secrecy Act), AML (anti money laundering) protocols and Fincen (Financial Crimes Enforcement Network). This bank acts as the safekeeping agent, and houses these deposits in their account with the Federal Reserve Bank in Kansas City.  This account is highly regarded because unlike Bank accounts which insure deposits up to $250,000, this account insures “dollar for dollar” (100% coverage). Furthermore, the commercial bank provides the depositor with a letter confirming that they will hold the funds per the deposit agreement (that the client has signed with the 4X lender), assuring the client that those funds can ONLY be moved back to the account they were wired in from, and confirming the terms in which the deposit will be returned. 
​

In all cases, when funds are escrowed, the funds can ONLY be returned to the account they originated from as stipulated in the Deposit Agreement. The lending group is unable to do anything with those funds except order them to be returned to the original account they came, which is clearly outlined in the deposit letter, as well as, the Deposit Agreement.
Download 4X Loan Process Diagram

4X LOAN STORIES

See examples below to understand why we say the 4X Loan can fund loans that just wouldn't be considered anywhere else

Business Expansion 4X Funding Story

Picture

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.
Cannabis Case Study Here

Luxury Development 4X Funding Story

Picture

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... 


Real Estate Case Study Here

NEXT STEP

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 a signed NDA to submit your project for preliminary review.

​We will review your materials and be back in touch and upon full review of your loan request, if the lender likes the project, we will provide you with a Letter of Intent (LOI) expressing the interest in funding your loan. From there we will work with you to complete the formal loan application and intake package.
Submit Loan Request
Mutual NC/NDA
LRS Form
LRS Spreadsheet Template
LRS Exec Summary Template
Picture


​

​Make Contact. Learn More. Get Funded.

+1.416.707.5008 talk | text | WhatsApp
All content herein is for informational purposes only, and any such information should not be construed as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer by weLLcome capitaL, or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.  All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on the site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. weLLcome capitaL is not a fiduciary by virtue of any person’s use of or access to the site or content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on the site before making any decisions based on such information or other content. In exchange for using the site, you agree not to hold weLLcome capitaL, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information made available to you through this site.

​© 2020 weLLcome capitaL consuLting Inc.   All Rights Reserved.
  • Home
  • weLLcome capitaL
  • 4X Loan
  • SBLC Funding