Collateral Enhancement Loan $3 Million+

Many potential deals are impossible to complete because of a shortfall in lendable collateral value. In these instances, collateral enhancement programs may be a good option. The Borrower must have a strong cash flow to pay the debt service on an interest only note for 10 years or have a Guarantor to insure the debt service. Companies desiring to expand without giving up equity find this an ideal structure. The Borrower must have current positive cash flow and be able to demonstrate the ability to effectively employ the funds provided to generate adequate cash flow to service the debt or have a Guarantor to insure the debt service.

The program involves three parties: The Borrower (Guarantor), a Lender/bank, and a Depositor (Collateral Provider).
The Depositor, for a fee, provides funds to purchase 10-year CDs (certificates of deposit) to the Lender resulting in the Borrower obtaining fixed-rate funding over a ten-year term without giving up equity. The CD guarantees the principal of the loan so the Borrower may not have to pledge assets to secure the loan. The Borrower may be required to pledge sources of cash flow to guarantee the payments on the interest only loan. This can be taken care of by bringing in a guarantor.

This program is simple and flexible for anyone. Through this program the Borrower will have access to depositor, lender and guarantor to make this transaction quick, easy and smooth for all parties.

Transaction

• Bank provides 100% LTV financing against the CD (certificate of deposit) up to 10 year term. Interest only loan with balloon payment due at end of term.
• From loan up to 60% goes back to the depositor.
• CD coupon's future value is sold at discount to pay back the depositor.
• From the loan up to 25% is used to purchase investment instruments (treasury notes, bonds, CDs) on the margin.
• This will take care of the loan interest payments and it will be guaranteed by the brokerage company managing the investment portfolios.
• The principal amount of the CD fully secures the Lender for the loan principal.
  
• The borrower’s assets are not required to collateralize the loan principal.
• Borrower has immediate funds to accomplish its business objectives. This is accomplished without equity dilution.
  
• Borrower has an apparent high amount of interest payable over the term of the loan with the Commercial Lender; however, (a) all Borrower payments are structured to be tax deductible as interest, (b) Borrower’s cash flow requirement is significantly reduced because no reduction of principal is ever required; this is an interest only transaction.

Program great for raising capital, development projects, or large purchases.
If you are interested in this program please contact us for more information.

Good Faith deposit required to get financing through this program. Minimum is $1.5 Million USD
*If you don't have $1.5 Million you can use the unsecured credit line program to get the funds or get a partner who will provide the $1.5MM fee which will cost between $25,000-$45,000 fully refundable if deal doesn't go through for any reason.

TWO PROGRAMS AVAILABLE:

NO MINIMUM DEPOSIT? CHECK OUT TERM SHEET FUNDING: