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Crypto Enabled Programs for HODLERS
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Private Wealth Lending Platform
Forget what you know about typical banking or conventional loans, this is DEFINITELY not that.
Unlike traditional banking, conventional lending or venture capital; this is a privately owned and operated wealth lending platform. Our lending group does NOT pool capital from a stable of investors like most lenders do, they lend their own capital. The 4X Loan is only possible because of the very privileged relationship our lending group enjoys with their banking partners.
Their capabilities are unique, and they can seem complicated for those who are used to conventional procedures. But these programs offer many significant advantages to clients - extremely low interest rates, unusually high returns with our Sponsorship Program, no personal guarantees, great terms and risk that is fully mitigated because everything in the chain is insured.
Because our multiples based 4X Loan and our matching 1X Loan both require the client to bring their own capital which can be either cash or crypto to the transaction. We have a federally regulated coupon bond mechanism in place for the safekeeping and protection of all client capital and interest. This 3rd party solution ensures clients that their capital is always safe, secured and bonded by the bank. The client’s capital remains in their own account and is never encumbered and is not the collateral for any loan.
There are several channel partners involved in the processes that make all of this happen; from top tier banks and prominent insurers, to international accounting firms ; the back-office processes involve sophisticated international financing mechanics that are governed by the compliance rules and regulatory oversight of the central banks. It is important that you know this is not a retail lending experience.
We rely on the security built into the safekeeping mechanism in place with the bonding bank to provide the safety and protection necessary for borrowers to have the confidence to proceed. The bond is a fully regulated security that is implemented for a specific goal; a 3rd party solution to protect your funds, and your interest..Partnering with top tier banks, a specialized international Investment Bank and the world’s largest global law firm for the development of all final loan agreements is the evidence you need to be confident we are offering very powerful funding options from a legitimate and very well connected global lender.
As a result of all of the above 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.
Forget what you know about typical banking or conventional loans, this is DEFINITELY not that.
Unlike traditional banking, conventional lending or venture capital; this is a privately owned and operated wealth lending platform. Our lending group does NOT pool capital from a stable of investors like most lenders do, they lend their own capital. The 4X Loan is only possible because of the very privileged relationship our lending group enjoys with their banking partners.
Their capabilities are unique, and they can seem complicated for those who are used to conventional procedures. But these programs offer many significant advantages to clients - extremely low interest rates, unusually high returns with our Sponsorship Program, no personal guarantees, great terms and risk that is fully mitigated because everything in the chain is insured.
Because our multiples based 4X Loan and our matching 1X Loan both require the client to bring their own capital which can be either cash or crypto to the transaction. We have a federally regulated coupon bond mechanism in place for the safekeeping and protection of all client capital and interest. This 3rd party solution ensures clients that their capital is always safe, secured and bonded by the bank. The client’s capital remains in their own account and is never encumbered and is not the collateral for any loan.
There are several channel partners involved in the processes that make all of this happen; from top tier banks and prominent insurers, to international accounting firms ; the back-office processes involve sophisticated international financing mechanics that are governed by the compliance rules and regulatory oversight of the central banks. It is important that you know this is not a retail lending experience.
We rely on the security built into the safekeeping mechanism in place with the bonding bank to provide the safety and protection necessary for borrowers to have the confidence to proceed. The bond is a fully regulated security that is implemented for a specific goal; a 3rd party solution to protect your funds, and your interest..Partnering with top tier banks, a specialized international Investment Bank and the world’s largest global law firm for the development of all final loan agreements is the evidence you need to be confident we are offering very powerful funding options from a legitimate and very well connected global lender.
As a result of all of the above 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.
Searching for the Right Mix of Debt and Equity
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When a company decides to enter the market to do an open capital raise, they focus on gaining access to the investment they need. However, we know that the cost of raising equity reaches far into the future and sometimes presents painful consequences down the road.
Entrepreneurs try to protect themselves as best they can; negotiating deals and terms they can live with, as they strive to attract investors and minimize their own dilution. With stock dilution, sometimes referred to as equity dilution, existing shareholders experience a decrease in their ownership percentage of the company as a result of the company issuing new equity. The equity injected increases the total shares outstanding which has a dilutive effect on the ownership percentage of existing shareholders. Raising debt financing can be a good alternative but expensive in the short term when dealing with hard money lender types, but in the long run it can still yield better results than an equity raise. There is a big problem with raising debt nancing however, and that is having the assets to secure a loan big enough to reach the capital threshold necessary to achieve the plan. The ideal solution would be to find a non-recourse loan where you don’t need the collateral upfront to secure the loan. With that type of loan, you could structure your raise with the right mix of debt and equity. The lender could structure a non-recourse loan with a General Security Agreement (GSA aka Lien) against the asset being developed and as the loan is spent into the project, the project itself increases in value. The lien secures the loan, whether the funds are spent on physical assets or developing intellectual property. Obviously using pure IP would be a very unconventional approach and a high risk loan for the lender. It would mean if the loan defaulted the lender would foreclose on the project, even in the case of developing Intellectual Property, while this is much more difficult collateral than physical assets would be, it is still possible. |
Here is a capital strategy scenario:
For this example, we will assume you and a wholesale debt lender and you are able to leverage your capital to generate the credit facility you need. The company is raising $35M and the proposed mix is $15M in equity and $20M in debt financing, albeit wholesale debt financing. The question is: What terms would you need on the debt to make this all work in your favour? What if I told you that the wholesale debt terms were as follows: Interest only for 48 months at the wholesale rate of 3.5%; and further to that - no personal or corporate guarantees. There are also no early payment penalties on the loan. The lender will convert to permanent financing at below market rates or extend the Interest only term if necessary (in 12 month increments). And finally, the monthly tranche schedule would see the loan deployed across 9 to 13 months (or longer in the case of large Commercial Real Estate projects). Just to recap the strategy again here: on a $55m capital target, the equity raise is $15M. The company could then take $10M from the equity raise and leverage it with our wholesale debt lender to generate a $40M credit facility. The company would still have $5M from the equity raise on hand and would be drawing down on the $40M in the credit facility over the next 12 months. The initial $10M deposit is returned when the loan is settled. It is a rare that any business would need to access to the full capital target of $55M within the first year, so the twelve monthly draws would typically not be an issue. With this strategy the company raises $55M and gives up equity on only $15M. Raising less than a third of the capital in equity will go a long way to preserving their cap table by minimizing their dilution with new equity partners. Obviously, this would pay huge dividends to the existing shareholders over the long run. What do you think of this approach? If you have questions, get in touch
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