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Introducing The Global 4X Loan Program |
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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 |
Interested? Read on. |
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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. |
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Incredible Terms
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Here's how it works: |
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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. |
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
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 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. |
