COMMERCIAL AND PROJECT FINANCING
100% Financing Details
Projects We Fund
100% SELF-LIQUIDATING LOAN PROGRAM
will e-mail their full business plan, executed Letter of Intent, (LOI
available upon request) on borrower’s letterhead with
signatures showing Proof of Funds to set up their escrow account for
their lending bank’s LOC (Letter of Commitment) and a signed &
fee agreement for 1%. All of our transactions are closed
through Sterling Bond Ltd., a Neutral Stake Escrow Co., located in
NOTE: Before going further, please ensure that your project can comfortably pay the interest (only) factor on an over-borrowed ratio of approx. 2.6 times the NET loan required for your project. Interest may be figured at approximately 7% to be safe. If it cannot, even if granted up to two years moratorium on payments for start-up projects, then your loan request will likely be turned down by most any bank.
If you have your own lending bank that will accept our AA rated bank collateral as a guarantee of their principal amount, then you are nearly there. After your bank reviews your business plan, and supports it for the loan, we need to know this through a signed LOI/LOC from your bank. The collateral being offered to your lending bank is an AA rated Euro bank issued 10-year Zero Coupon Bond. This bond matures in 10 years to the face amount of the “gross” loan amount, and at maturity pays off the principal of the loan for you. A Specimen copy of the Bond is available upon request.
If you do not have a lending bank, we may be able to provide one for you that does this transaction. There will be additional bank introduction fees for this service. This fee can generally be included in the gross loan amount.
<>Once the lending bank accepts the project for funding, and escrow is opened, your loan is set for a prompt closing. Sterling-Bond Ltd. will send you their Escrow agreement for the transaction. To open escrow, borrower, or the lending bank, if they agree to advance to Escrow a portion of the proposed loan, in the amount of 2.2% of the gross loan amount. This represents a 2% Euro bank commitment fee, and .2% normal escrow charge. Once deposited, the collateral bank will be alerted and the bank issues its 10-year zero coupon bond live instrument, viewable on Euroclear by your lending bank. Once authenticated, funds versus collateral are exchanged, bank-to-bank. Your bank can wire all funds to escrow, or simply pay the NET project proceeds to borrower direct, and pay all other costs for brokerage, escrow etc. to the Escrow Co. for final disbursement. Transaction is closed.
As 100 % of the needed funds are disbursed to the borrower at once, the borrower will often let the funds remain in the newly created project account in the same lending bank, at interest of course, and make draws thereon as needed for the project, thus offsetting some of the accruing interest on the total loan. Loan interest is normally fully tax-deductible in most venues.
Disclaimer: We do not solicit or promote foreign security instruments (MTN’s) and is acting herein only as a consultant to those parties properly licensed to do so, we can refer to a licensed party who offers them. Interested lenders or borrowers are advised to seek legal counsel in their normal due diligence of the banks or other parties involved in this type of transaction.
in all 50
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