A blog designed to provide financial information, solutions, and alternatives within a highly challenged lending environment.

Sunday, January 31, 2010

Funding/Monetizing/POF Opportunities:

The goal of this blog is to provide information, and assist in obtaining financing for clients and/or projects that need assistance. The intention is to provide procedures, and information that may help get your project “un-stuck”. One of our trusted funding sources recently provided this guidance regarding their capabilities, and their selection criteria. Take a look, and, if you see a fit, let us put you in touch.

In a frozen credit market such as today, companies need solutions fast. We make it very simple! We do NOT get involved in the particulars of your companies project! We strictly look at the overall scenario of your loan request and immediately start working on the solution. Many professionals have gone so far to pay up- front fees to brokers whom take their money and never perform. You may have had this very experience yourself. This is not how we operate; our time is just as valuable as yours!

Simple Overview:

There are 2 important factors in the successful outcome of your funding. Without the right mix, the money won’t flow. In many cases we can help provide the missing link required to complete your funding.

Relationships: This is purely relationship driven funding. We look to you to provide relationships and contacts necessary to provide a successful funding, in turn we will share relationships when necessary to bridge the gap.

Instruments / Collateral / Projects: Our primary US Fund lends on Direct Pay Letter of Credit (DPLC) and Letters of Credit (LC) among other instruments. Our Foreign Trust will review SBLC, leased / purchased instruments, Bonds, CDs, Munis, T-Bills, Stocks and others. We have unique funding available for “Out of the Box” assets, and additional relationship avenues for “Stand Out” project specific financing. BCF may also provide access to personal contacts that can review your current structure and provide solutions to achieving the instruments we require.

Scenarios given are for example purposes only; Examples may or may not apply to your request:

Marketable Securities:

Today’s domestic financial institutions usually require collateral in order to issue a DPLC / LC or SBLC. Collateral most commonly accepted from these institutions are marketable securities such as: Bonds, T-Bills, CDs, Muni’s, Stocks & other portfolio security examples.

Each individual institution determines what LTV you will be granted. Clients who have these types of instruments are able to keep the collateral in their own bank, if their bank has an “A” rating. Allowing clients the full ability to earn the interest on their collateral while utilizing our funds at an incredibly low rate provides a stable a secure form of arbitrage.

“Out of the Box” Assets:

Some of our banking and financial relationships will provide a DPLC / LC on certain high end “out of the box” assets

Examples are:

  • Fine Art
  • Rare Stringed Instruments
  • Private Jets & Airplanes
  • Private Yachts
  • Manufacturing Plants
  • Multi – Location Commercial Projects
  • Owner & Non-Owner Commercial Projects
  • Operational Mineral & Precious Gem Mines
  • Gold & Precious Gems / Stones
  • Casino & Green Projects

International Projects Available on a Case by Case basis.

Private, V.C. & Angel Investors:

Private, V.C., Angel Investors and collateral providers have found our lending sources as an additional way to earn additional safe arbitrage while continuing to lend at better returns using our money, not theirs.

By leveraging your current assets, Investors are able to wrap them in an attractive Bond, CDs or other alternatives they choose offering excellent returns. These interest earning instruments are then lodged as collateral to obtain a DPLC.

If your financial firm is of the approved rating, your funds do not have to move. Then take advantage of our US funds at rates around 1.5% or higher depending upon rate, term and amount. If they aren’t approved we will find you this relationship.

Rule of OPM:

The rule of “Other People’s Money”. The wealthy have used this philosophy since the beginning of time. Why use your money, when you can leave it in your bank and use ours at incredibly low rates. If your institution or a relationship we introduce you to can earn you a great rate of return on your existing assets, use our relationship’s funds at such a low rate to provide incredible returns. Become an private V.C. source in a market that is massively changing. Many of our high-end clients are able to make excellent returns keeping their portfolios at their existing institutions while borrowing our funds at the lowest rates available.

Commercial Wraps & Refinance:

Do you have excellent commercial properties, yet your current banks are not able to offer a refinance or additional funding potential. For the right commercial project it is possible to provide relationships interested in a wrap refinance utilizing our funds to secure a cash out debt consolidation refinance. Details available upon request. Attractive LTV’s or short payoffs required.

Example projects are Hotels, Manufacturing Plants, Medical Facilities, Malls, Office complexes, virtually any project with great debt service, high occupancy and attractive compensating factors.

Selection criteria

Our primary US Fund requires a DPLC / LC (Direct Pay Letter of Credit or Letter of Credit) from an A rated financial institution. We do have many approved institutions that can provide these instruments against a variety of marketable securities such as CD’s, T-Bills, Muni’s, Bonds, Stocks or various collateral. Simply provide us the name of your institution a description of the instrument and we move forward rather quickly.

We continue to build solid relationships with integrity driven professionals and companies that may help you obtain one of these instruments; if what you have does not qualify. We strive to bridge these relationships in hopes to serve your needs and facilitate your funding request.

Funder requires a strict NCND to be completed before discussing the details of any of our programs. Once completing our NCND and providing a description or proof of the instrument we go to work packaging your request.

US Fund Sources :

Funder has direct personal relationships with US based financial institutions containing over $100 Billion in lending power. All relationships are proven, verifiable sources able to fund your loan requests should you meet the specific requirements.

Current interest rates are starting near 1.5% variable with 1-30+ year terms possible. Funding can be completed in as soon as 21-30 days, while larger amounts could take longer. Our US Funding source is NOT project specific, and is purely relationship, instrument, collateral & bank driven.

Standard & Poor’s and Moody’s or Fitch provides ratings on a broad range of financial institutions including banks; savings institutions; securities firms; mortgage institutions; finance companies; government-sponsored enterprises; asset managers; exchange and clearing corporations; and credit unions. To work with our US Fund Source your institution or one we provide must have an “A” rating or greater to qualify.

Our US Funding Source has approved a few routes to access our funding. By providing a Direct Pay Letter of Credit (DPLC) which is similar to a Letter of Credit, we will fund 100% (less fees)

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Commercial Funding Alternatives is a blog based on the knowledge of a number of lenders working to provide viable lending alternatives in a very challenging environment.