Bonnie Walker
  • Home
  • 4X Loan
  • 1X Lending Program
  • Project Sponsorship

Gold Backed Program

Gold Backed Funding Program

Our private lending group can leverage their significant gold holdings to help you get your project funded. They will pledge their assets to a third party who is capable of receiving and lending against the gold. The gold is pledged either via an Asset Pledge Agreement or an SKR. The third party receiving and verifying the asset, will issue a credit line to our lender that is fully secured by the gold. Your project is then funded by our lending group out of a portion of that credit line. 

This program is designed for sophisticated clients experienced in high finance who can leverage their existing relationships with banks, hedge funds or family offices to secure a Credit Line/Loan (fully underwritten by the assets) that will provide 100% funding for their projects.

How to Proceed

There is a very specific protocol for engaging our lending group on this 100% funding option. They are requesting a written ​fully conditional and non-binding offer sheet​ from the party interested in receiving the asset pledge so that they can understand the terms of the proposed transaction. Once this has been received and confirmed accepted, our group will immediately engage their banking teams to provide CIS and proof of ownership, hallmark etc. ​and exchange contracts and pledge agreements.

If you are able to facilitate such a transaction, the terms in writing that outline the fully​ ​conditional​ ​Term Sheet or Expression of Interest letter​ (to confirm the basic expected LTV, returns (for trade), or rate & term for credit, timing and process steps) along with a Bank Comfort Letter or equivalent to​ ​confirm your group's ability to execute on such an undertaking is the first step. This document should also lay out the preferred process steps that would be followed to a successful close.

With the written offer accepted, all parties engage according to the proposed process steps. ​These steps have been employed on a number of other recent Tier 1 Credit Lines, however, ​if your group cannot engage in the proposed manner then there is no viable path forward - as this structured approach must be followed. 

Setting Up the Project Loan

Once the path for monetizing the asset has been established, the project then goes through the lending group's usual intake process.  The funds from the the above transaction become the "proof of funds" for the project loan and our lending group processes the borrower’s application to fund the project.  Once the loan has been processed and accepted for funding, the Term Sheet and contracting processes complete, financing of the project can commence.

Since our lending group is financing 100% of the project, they will ask for a minor equity position in the project. Equity is calculated on a case by case basis, in accordance with the project’s profitability expectations and risk profile. The equity requirement is presented once the terms of the loan are agreed upon and the equity portion will also include a negotiated and mutually agreed upon buy-out clause. ​

The interest rate on the loan is dependent on the monetization parameters.  If the monetization involves a credit line then the loan amount for the project will be charged AT THAT SAME INTEREST RATE as the Credit Line.  If the monetization involves a payout, and therefore does not involve owning the bank interest, the project loan would be the standard rate of 3.5%. This is a 48 month interest only loan with the ability to capitalize interest and fees, if required. The Lending Group's standard loan fees apply - a 3% Lending Fee (due upon close and drawn from the loan proceeds), the $5,000 monthly Project Custodian fee (billed monthly directly by PWC) and $25,000 as a deposit against closing costs due prior to the development of the Final Loan Agreements. As an intermediary, weLLcome capitaL's standard finder fees also apply: $5,000 engagement fee at application and 3% of the loan amount due at closing.
  • Minimum Loan is $5M USD
  • 100% Financing
  • Lender is seeking equity
  • Funding in approximately 45 - 60 days
  • No Personal or Corporate Guarantees
  • No prepayment penalties
  • Ability to capitalize interest and fees
  • Available Globally

If you can meet the intake requirements for this program, please get in touch.

Make Contact.  Learn More.  Get Funded

Picture
+1.780.919.1872 
Talk | Text | WhatsApp | Signal

Home
1x loan
4X Loan
Project Sponsorship
About Us
All content herein is for informational purposes only. 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 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
  • 4X Loan
  • 1X Lending Program
  • Project Sponsorship