“FAQs” 

 

Q1 “Where are you from?”

Our lending partner is registered and domiciled in the Caribbean.

 

Q2 “Why are you registered/domiciled there?”

Strictly for the advantageous corporate structures that are available to global businesses.

 

Q3 “How long has this program been operating?”

It has been available since 2005.

 

Q4 “What kind of businesses are you willing to lend to?”

If the business opportunity is determined to be a good one, then we are open to virtually any type of business that is not illegal or located in a politically sensitive jurisdiction.

 

Q5 “I have a great business idea and need $1M from an investor. Can you lend us that $1M?”

No. Our lending partner's business is structured to be your “Second Lender”, as the program operates within very specific banking regulations and guidelines. Once you have already raised a minimum of $1M in cash pledged to your project, we can then offer to loan you multiples (up to 4x) of those initial funds at an interest rate of “LIBOR+2”.

 

Q6 “How does it work?”

Banking regulations require us to position your 20% initial funds as the “loan loss reserve”. This does not put any liens or encumbrances on your money, it simply means that your money is required to sit idle on the sidelines, without ever being encumbered or depleted, while our loan funds are spent into your project.

Q7 “If my initial funds are the “loan loss reserve”, are they taken in the event of any repayment “default”?

No. Your deposit is not encumbered in any way, as it is not pledged as collateral in the deal. This assures that your cash and investors are protected from the risk of your project.

Q8 “I have $5M, and I need to buy a piece of land upon which to build a $20M project. Can your program help me?” A Yes, as long as your purchase agreement can follow the disbursement protocol. The program is designed in such a way that we will deploy our loan funds on a Monthly basis. Since the funds are typically fully disbursed in 6-12 months, your purchase agreement must align with this procedure. The other solution is to have our funding begin 6-12 months prior to your purchase date, so that all of the funds are sitting in the bank account when you are ready to close on the deal

Q9 “How does my initial money “sit idle on the sidelines?”

There is a very specific procedure to follow to ensure that your money is subjected to no risk, as well as ensuring that those funds remain non-depleted, and unencumbered during the drawdown of our loan funds. At all material times, your funds will be fully insured by BRINKS or G4S, or if you prefer, a Surety Bond issued by a third-party insurer.

 

 

METHODS OF SAFEKEEPING

 

METHOD A: “PRIMARY METHOD”: SAFEKEEPING PERFORMED BY BRINKS OR G4S

For the security and peace of mind of our clients we partner only with the largest and most respected institutions and service providers in the industry for our safekeeping options. Using this method, safe-keeping services are provided by the largest Asset Protection Companies in the world - G4S and Brinks. They will fully insure your capital by issuing you a formal SKR (SafeKeeping Receipt) and put into safe-keeping your 20% initial funds. Our lending partner covers all costs of this security/safekeeping method, without the client having to advance any funds prior to safe-keeping.

 

Process Steps:

1. Lender and borrower complete the execution and signing of the loan Term Sheet.

2. The Fiduciary law firm is assigned to the loan, is introduced to the client and a Fiduciary Deposit Agreement is prepared, specifying roles and responsibilities, and process of the safekeeping and eventual return of funds to the account of origin.

3. The borrower signs and returns Agreement to the Fiduciary, who forwards it to the lender. 4. The Agreement is sent to BRINKS or G4S for the set-up of the SKR.

5. The lender at this time deposits with Brinks/G4S an amount equivalent to the borrower's initial funds, to fully back the SKR to BRINKS or G4S’s satisfaction.

6. BRINKS or G4S send the SafeKeeping Receipt (SKR) via email directly to the borrower, fully insuring/guaranteeing the borrower's initial funds amount until they are returned in full to the account of origin. The Brinks/G4S representative can answer any questions the borrower may have about the security documents.

7. The borrower wires their initial funds to the Fiduciary’s Trust account, per the Fiduciary Deposit Agreement.

8. At the end of the term, or according to the cashflow schedule (or earlier, subject to the notice period in the Deposit Agreement), the borrower contacts the Fiduciary law firm and requests the return of their initial funds.

9. The Fiduciary transfers those funds back to the borrower's account of origin, as listed in the Deposit Agreement.

 

METHOD B: “WHOLESALE CLOSE” - FUNDS DEPOSITED DIRECTLY INTO LAWYERS ESCROW ACCOUNT.

This process has also been designed to ensure the safety of your initial capital; however, being our oldest method of securing capital this method is not for the unsophisticated because it involves understanding and trusting the safeguards built into the escrow system itself. Utilizing this method, your funds are wired directly to the Trust account of the law firm that is closing the deal (from the banking compliance side) in London. This Trust Account is always fully insured under their Professional Insurance coverage offering you a 100% guarantee of the security of your funds.

Please be advised that this is not a process that works well for those needing extensive due diligence investigations and dialogue with the Law Firm, because they are not very interactive in this model – they simply accept Escrow deposits, and close legal transactions. You will have full information about the law firm, but they do not participate in our process – they will provide you with the wire instructions, and simply execute according to the terms of the agreements in place.

 

METHOD “C”: $10M+ Transactions

Your initial funds remain in your bank account, and a SBLC or BG is Issued by your Bank. Under this method your initial funds remain in your account, and your bank would issue to the fiduciary's bank a “banking instrument” - a “SBLC” (Standby Letter of Credit) or a “BG” (Bank Guarantee). However, unless your instrument has a face value of $10M or more, banks are very reluctant to accept them. Banks receive fees based on volume and it generally takes considerably more time and effort to receive and value a small SBLC than a large one. Additionally, your bank will charge you substantial fees for setting up the instrument and executing the transfer of the instrument to another banking institution. As a result, we strongly suggest using the “Primary Method” (Method A) for most deals, as that option is smoother, more expedient, and has no costs for our borrowers. This option to be discussed only if it is necessary.

CLOSING PROCESS

Once your Initial Funds are in place, the loan is then put through the rigorous “Compliance” process of the European Central Bank (because our primary bank is in Europe), the Eastern Caribbean Central Bank (as we are a registered business in their jurisdiction), the US Federal Reserve System (if we are issuing the loan in USD), and our Insurers. This process takes 60 days. Upon completion of the compliance process, with the loan having cleared all money laundering and anti-terrorist protocols, your Credit Facility is released, and disbursements commence. Additionally, a “History of Funds Report” is issued to your bank via the Bank SWIFT System, to fully inform them that the incoming money has cleared all banking compliance protocols. Your initial funds then remains in “safekeeping” until you deplete the full amount of our loan facility. Those initial funds will then be wired back to your bank account of origin, or the bank instrument returned to your originating bank.

Q10 “What is the Minimum and Maximum amount needed to participate in our Programs?”

For the Private Loan Program, you must have a minimum of $5M USD in CASH, pledged to your project as the initial funds. There is no maximum. We can accept deals as low as $1M, however, in order to enter the compliance phase of the loan setup we must have deals with a combined total of at least $5M USD. This means that we must submit your deal along with at least $4M in other deals; so depending on the time of year and deal-flow, there could be some delay for the submission of smaller loans. (We would keep you apprised of this ahead of time). If there is any delay, you can choose to keep your cash in your account and wait, or enter the safekeeping process where we would pay you 2%/month during that time period while your capital is waiting for processing.

 

Q11 “What collateral will I need to provide for my loan?”

Loans within this program are secured SOLELY by the project that our money is used to finance. The lender will have a “GSA” (General Security Agreement) on the project – no further collateral is required. We will not ask for personal or corporate guarantees, we will not lien your initial funds, and will not attach any other assets. If the loan is defaulted on, our only claim is against the project itself.

 

Q12 “What is the length of the loan term?

The length of the term often varies from project to project. We will make every attempt to be flexible with the term to help it fit your project. Our default length for a loan contract is 48 months from the time of the first disbursement. The minimum length for any loan is 12 months.

 

Q13 “Are there any penalties for early repayment?”

No. You can repay any portion of the principal at any time, without penalty.

 

Q14 Are there any FEES? A The lender will charge a one-time, 3% “Lending Fee” due upon closing of the loan (At first disbursement). This fee is paid directly from the credit facility, as part of the first disbursement. This fee is calculated as 3% of the total loan amount - your Initial Capital is NOT included in this calculation.

ADDITIONAL FEES/COSTS

 

a) “Custodian Fee”: As with any loan, it is important to have a competent Custodian who will oversee the loan disbursements, as well as ensure that the use of funds matches the drawdown schedule that the borrower has provided to us. Our Insurer makes this a requirement that must also remain in place to track that the project remains on track and interest repayments are also being satisfied. In order to do this effectively and efficiently, our insurer will assign an independent 3rd party Custodian who will provide oversight on a Monthly basis from the time that the funding starts until the loan is repaid in full. The assigned custodian will levy a flat $5,000/month Management Fee for their oversight services on the loan, which will be invoiced by them once monthly. This will be paid directly to Price Waterhouse.

b) Legal/Closing Fees: The closing costs of any loan are always the responsibility of the borrower. This cost will never exceed 1% of the loan amount, with the high end (1%) only occurring in very complex transactions where appraisals may need to be ordered, and multiple lawyers becoming involved. In all cases, itemized closing costs will be provided to the borrower - most Loan Agreements are handled for under ½%, which typically translates to $15,000-$30,000. During the loan setup process, the lender incurs costs for project assessment and due diligence through Price Waterhouse, and we begin to incur legal costs from the point of the issuance of the Term Sheet, including the cost of the BRINKS/G4S Safe-Keeping services. All of these front-end costs are fully borne by the lender.

Q15 “How Do I Apply for your program, and what are the steps?”

 

Step 1. We conduct an introductory phone call to determine if your project suits our criteria, and that our program suits your needs. Upon initiating the application process, the time required to complete a standard deal and begin disbursing funds is approximately 75 – 90 days from first introduction through to the end of full compliance.

 

Step 2. Submit Your Application Package. The required information:

 

1. Proof of Funds - document showing initial funds are ready to deploy (As well, if the funds are from a 3rd party investor): i) Letter from investor pledging the 20% (if applicable). ii) Copy of Investor's passport (if applicable – for anti-money-laundering protocols).

2. Business Plan.

3. Use of Funds / Drawdown Schedule.

4. Program Loan Application Form: i) If the applicant is a corporation or LLC, a copy of the “Articles of Incorporation” must be included) ii) If the applicant is a Corporation or LLC, a “Board Resolution” (stating that the signatory has the authority to act on behalf of the corporation).

5. Initialled and signed “FAQ” document.

6. Initialled and signed “Benchmark Agreement.”

7. Copy of Passport of Application Signatory.

Step 3. Once you have supplied these items, we will quickly confirm that your project meets our criteria. We will then create a “Term Sheet” within 10-14 business days and send it to you for your signature.

Step 4. Once the Term Sheet is signed, the lender will conduct a call with the Borrower and their Compliance Officer, to outline the remaining steps, set good expectations and get confirmation that you are comfortable with proceeding to the ensuing steps. If you agree to the final steps in the manner and order that they must be performed, then we proceed to Step 5. If you do not agree, we determine whether or not the issue(s) can be rectified; if they cannot, then the loan process ends and both parties can go their separate ways.

Step 5. The lender will arrange a call between the Borrower and the Fiduciary law firm, who instructs the client on the steps involved in securing their initial funds into “safekeeping” with BRINKS/G4S. *NOTE 1: Once the Fiduciary has been summoned into a deal, they will expect it to be finalized within 7-10 days. If it is not, they will assume that the Borrower will not be proceeding and they will excuse themselves from the deal. This can create a serious issue to complete the loan as securing another Fiduciary is a difficult process. *NOTE 2 : At the point that the fiduciary is brought into the process, our lending partner is immediately required escrow the full loan funds into safekeeping. Until the loan closes, those funds will be sitting idle, so please be very clear with Step #4 before proceeding.

Step 6. The Borrower and fiduciary set up the Fiduciary Deposit Agreement, which is sent to Brinks/G4S to set up their SafeKeeping Receipt (SKR) which Brinks/G4S sends directly to the borrower.

Step 7. With the security of their funds confirmed, the borrower wires their funds directly to the Fiduciary law firm's Trust account, per the Deposit Agreement.

Step 8. The date of the first disbursement is established early in the Compliance period.

Step 9. Final loan agreements are completed and executed by all parties during the 60 day banking compliance period.

Step 10. After Compliance is completed the Credit Facility is opened, and disbursements commence as per the final loan agreement's drawdown schedule.

 

Q16 How is BRINKS/G4S introduced to the Borrower?

The lender will forward your signed Deposit Agreement with the fiduciary law firm to G4S/BRINKS who will then create and deliver to you by EMAIL your SafeKeeping Receipt (SKR).

 

Q16b “Can I walk into any BRINKS/G4S office and ask them about my Safekeeping”?

No. The safekeeping structure that we utilize is very different from the standard safekeeping/SKR structures that BRINKS/G4S utilizes with their regular clients. For this reason, there are specifically dedicated BRINKS/G4S representatives who have been involved in the structuring of this SafeKeeping Program in position to provide your Fiduciary the proper information and support. Your Fiduciary can provide you with any “proof” of the guarantees and safekeeping at your request, through a simple request submitted to those BRINKS/G4S Agents.

 

Q16c “Usually when BRINKS/G4S delivers a package to a Recipient, the “SKR” and the Insurance is NO LONGER IN FORCE”

This is true with typical BRINKS/G4S transactions. However, in the case of OUR contracted arrangement, the “SKR” maintains that insurance even AFTER the Asset has been delivered to the Fiduciary. Our arrangement ensures BRINKS/G4S will insure your funds from the time that they insure them to the time that you request their return. As long as you hold your “SKR”, you are fully guaranteed by BRINKS or G4S.

 

 

Q17 “If I am Accepted for a loan, how do I Proceed?”

Upon verification that the project is a good fit for the program, the lender will prepare a draft “Term Sheet” that outlines the terms of the loan. This Term Sheet will be sent over to you, so you can review it with your Lawyer, and sign it back if you are comfortable. If you need some adjustments, then we can get on a call to outline those changes and get the Term Sheet to where both sides are ready to proceed.

 

Q18 “What is the process for the final contracts?”

During the 60-day compliance period, the lender will work with your legal team in the development of the Final Loan Agreements, which will incorporate all of the information in the Term Sheet, and any additional final details. The issue of “GSA’s” (General Security Agreements) will be discussed between Lawyers during the drafting of the Final Loan Agreements, which typically occurs during the 60-day compliance period.

 

Q19 “How long does the compliance confirmation take?”

60 days is the norm, assuming there aren’t any surprises, from the time that your money enters “safekeeping” with the assigned Fiduciary.

Q20 “Can I use the loan funds to take out my initial, more expensive, “Hard Money Lender”?

Yes. What we advise here is that you post an Initial Deposit of 25% instead of the usual 20%, so that the 4x credit Facility is now equivalent to 100% of your capital. Then you structure your Hard Lender into your drawdown, so you can repay that Lender over a prescribed time period.

 

*Q21 “How long does it take until the Loan money is fully disbursed?”

Our typical disbursement schedule would see the Entire Credit Facility released over 9- 12 months, in Monthly deposits. When you first submit your project for assessment you will provide your “Preferred Drawdown Schedule”, and “Use of Funds” outline, and we will try to accommodate that timing as much as possible; however, the Final Drawdown Schedule will be determined by our Insurer, and will rely heavily on the level of risk that is conveyed by the “Risk Assessment Report” that is generated by Price Waterhouse on each Project, from the information that you initially supply in the Application process.

 

** It is important to note that we strive to push the funds out to you quickly as we are permitted, but we also need to stress that our Drawdown Schedules lean towards being relatively “flat,” in the sense that they will not have “balloon payments” in any given months. The typical drawdown would see the first draw being the smallest, with each draw increasing, until the full credit facility is pushed out in that prescribed 9-12 Month timeframe. If you do require a “balloon”, you can always start early, have us “stockpile” a few disbursements for you, and then you can take a larger “balloon” sum. If you are trying to purchase a property or Asset in one payment, then maybe you can arrange other Financing that can provide a single payment, and then use our structure and low interest rates to pay out the other Lender over 9-12 months.

 

Understand that our model is designed to provide you the capital that you require, without having to secure our position with “Personal or Corporate Guarantees”. The result of not carrying any other liability beyond the project itself is that the funding schedule must meet the requirements of the Insurance Company that is ultimately assuming the risk. Since there are no other assets being collateralized, drawdowns will almost invariably be between 9 and 12 months to push out the full facility, and distributions will be at fairly consistent, rising level.

 

Q22 “What is the Interest rate charged on your loans?”

Our standard is the 12 Month, US LIBOR rate, published by the Intercontinental exchange at the start of the relevant quarterly interest period, plus Two Hundred (200) Basis Points (“the Interest”). Interest is due quarterly and must be kept up to date. Interest payments can be budgeted to be made from the credit facility itself. We also have a reduced “Sovereign Rate” for Government Borrowers.

 

Q23 “Will I be paying interest on the full amount from day 1?”

Interest is only charged on principal amounts that have already been disbursed and spent from the credit facility.

 

Q24 “How do I repay the loan?”

We have FOUR options for repayment, which you will chose from before the end of the loan term. Repayment method is entirely up to you, so that you may select the method that best suits your business needs: (i) Standard Loan Format (ii) Short or Long-Term Mortgage, which we can assume. (iii) Equity, or Debt-Equity hybrid model (iv) If at the end of the term you are not yet prepared to repay the loan, you will have the opportunity to extend the loan term.

Q25 “What are the RISKS ?… everything has risk, and this sounds “too good to be true.”

First and foremost, our Program is built around your Initial Deposit being fully secured and insured at all times. What makes us even stronger than any other potential arrangement, is that our deal with BRINKS and G4S assigns them as the Security House that will pick up and guarantee your funds. Your money is never subjected to any risk of loss, is never under our control, and it is insured from time that it is deposited by you, until the moment that it is returned to you.

 

Q26 “Is there anything that could potentially interfere with us receiving the loan?”

As long as your funds are not from illicit sources and will clear compliance without incident, then you are good to go. After the Loan disbursements begin, if you breach the contract in some manner, it could cause the Loan to be temporarily delayed, or possibly stopped, depending on the severity of the breach.

 

Q27 “What if sometime within the deal timeframe, I do not like the direction that the project is taking, and I would rather exit it than potentially suffer a loss?”

 

Each of these loans includes an “Exit Option”, and in such a case you would simply execute it. No matter what portion of the loan has been spent into the project, you can abandon the project at any time should you desire to. Even if you have spent all of our lender's funds and none of yours, this option remains available to you. If your funds still sit in SafeKeeping, they will be released back to you. In such a case, the lender does request that you give 30-60 days advance notice that you are abandoning the project so that they have adequate time to unwind their positions, and not cause any undue aggravation. You will completely forfeit the project if you exit.

 

Q28 “What Currency can I use for my initial funds?”

USD, Euros or Sterling, Indian “Rupees”, and Dubai “Durham” are all acceptable currencies.

 

Q29 “Are there any limitations to my using a Bank Guarantee or Standby Letter of Credit?”

In these cases, we ONLY deal DIRECTLY with your issuing bank, and that bank MUST be a “Top Tier” Bank, located in a good jurisdiction. Since the Fiduciary's bank will discount the face value of the instrument, it must be “grossed up” appropriately to yield the Initial Deposit amount required for the loan amount you have requested. Additionally, any banking fees from your banking institution for these instruments will be borne by the borrower. As stated above in the Safekeeping Options section, Bank Instruments are becoming very difficult to work with, and we prefer to avoid using them in instances under $10M USD or more.

Q30 “Can I use liquid assets like GIC’s, T-Bills, Bonds, Mutual Funds, or pledge my Land as collateral to establish the “loan loss reserve”?”

NO – “Near-Cash” instruments are not permitted. Any instrument that you possess must be first turned into CASH, and placed into a bank account, in your corporate name in order to serve as your initial 20%.

 

Q31 “Can we keep our money in multiple bank accounts?”

NO. Capital must be amalgamated into ONE Bank account to avoid confusion, and a resulting slowdown in our system. We recommend that if you have your money in multiple accounts, or have several “investors” in your project and the money is scattered, that you utilize the escrow/trust account of a trusted Lawyer, and compile it into a single account. This ensures that the deal remains simple and moves along expeditiously.

 

Q32 “When using a Bank Instrument, my money will be kept in a daily interest account. Can I still earn interest on that money?”

YES. You can earn whatever interest your bank offers you for a cash account.

 

Q33 Once I have been provided a “Term Sheet” for my loan, how much time do I have to act on it?

30 Days. Term Sheets have an “Expiry”, and when one is issued, the loan money is also set aside, with the expectation that the deal will close in a timely fashion. If you do not proceed to close before the term sheet expires, then you will have to reapply reapply for the program, and possibly pay a fee for “Reapplication”.

 

Q34 “What should I do if my timing happens to coincide with a timeframe that could create a “Delay”?

As we only deal with banking partners at the highest levels, certain times of year may see delays in the processing of loan deals due to holidays. If your deal drifts into times of year that might be an issue for processing in a normal timeframe, we make concessions to make that delay more palatable. This will typically happen if your deal is not settled before June 15, when the summer vacation bug hits, and banks close entirely in Europe for extended periods. Another period is between American Thanksgiving and New Year’s. Again, this is another long holiday season that will see deal processing through the system slow down. During these slowdown seasons you have two options. You may either sit on your capital and wait until the end of the slow period, OR process your Initial Deposit with BRINKS, and the lender will pay out to you 2% interest per month for the period your capital is idle. When the slowdown period ends, we can resume with the loan setup and execution.

YOUR DUE DILIGENCE

Q37 “Before I go any further, I need to know the names of the Principals, their background, obtain a “Proof of Funds” to know that you can perform on the loan, visit your offices, talk to other clients etc.”

This would be “traditional” due diligence, and it makes perfect sense in any traditional business deal where you are subjected to “RISK” to your capital, and your key concern is mitigating that risk. In a normal arrangement, you would spend your money in your project, and look to us to lend you a sum that would also be digested by your project (50% loan is typical). We would undoubtedly take Collateral on every asset that we could locate, and expect guarantees from you both personally, and corporately. Further, as is common in the industry, we would charge substantial, non-refundable upfront fees for “submission”, “due diligence”, “travel/site visits” and more, which could be in the tens, or hundreds of thousands of dollars, with no guarantee that we would accept the deal. That is the standard business model when you are risking large money.

 

We would also typically expect that your capital to be wired to us for safekeeping instead of an unaffiliated Fiduciary, and we would then lend according to your initial amount. Within our format, we never control your funds and we ensure that you are never exposed to any risk of loss. The most important issue for us is the safety of your capital, and the complete mitigation of risk to you and your investors throughout your deal.

 

To achieve this, our lending partner spends millions of dollars in insurance and Financial Guarantees, so that we can satisfy the comfort needs of our “partners”– the Insurers, the Bank and You, the Borrower. Since the ONLY money that is ‘AT RISK’ is OUR money, we no longer entertain endless costly hours of satisfying traditional due diligence requests.

 

Your funds are always 100% secured, either using G4S/BRINKS as the Safe-Keeping Agent, directly depositing your funds to a Lawyers Escrow, OR utilizing a Bank Instrument. Regardless of the method, your money is never exposed to any risk. We then lend up to 4x your initial deposit at a Wholesale Interest Rate, and only our money is put at risk in the field. And through the compliance process you have no concern about being involved with illicit funds, because your bank will receive a “History of Funds” Report, confirming the origin and safety of our capital before it is deposited into your account.

Proper “Due Diligence” is the process of “Following the Money”. The template from which we operate is designed to give you the third-party transparency that you need in order to feel safe, because you can readily and clearly “follow the money”.

 

Additionally, we always offer you the option of “Pulling the Chute” and exiting the deal at any time, without fees or penalties, in the event you suddenly feel any need to exit. Since we never have any involvement with your funds, and our loan is secured only by the project itself, we do not waste our time or efforts satisfying unnecessary due diligence. Your interests are always fully protected. To have your money returned, all that is necessary is for you to request it from BRINKS/G4S via the Fiduciary.

 

If you still have the burning need to conduct a “full traditional due diligence investigation” on the source of your loan, then it CAN be done. To accomplish this, we will put you in touch with one of our lender's “INDEPENDENT RETAIL LENDING PARTNERS”, where you may visit their office, receive references, and talk to associates who will vouch for their successful dealings with our program. This will also result in you becoming their client rather than a direct client of our lender, and you will be subject to the retail lender's Retail Lending Rate (rather than at the rate that the lender was offering it to you), along with their associated fees. We cannot go to the cost, time and trouble of fully guaranteeing your funds, and allowing you to borrow without any personal collateral or risk, if you also require us to spend the time and money to conduct a traditional Loan experience for you.

 

Q38 “I am worried about “money laundering,” so I need to know everyone who is in the deal, in case the funds come from a questionable source.

The loan monies that you receive from us will be paid out to you through a TOP-TIER Bank – (ie: HSBC). When your bank receives this money, they will also receive a “History of Funds Report”, and a full “KYC” on the source of funds. The manner in which this system is designed means that there is absolutely no possible way that “dirty” money could enter, or circulate through the system. Every transaction is strictly “Bank to Bank” via the SWIFT system, so the onus to perform the requisite due diligence will be between them.

THE IMPORTANCE OF FOLLOWING OUR ESTABLISHED PROCEDURES

 

In providing lending services since 2005, our lending partner has developed this program in a way that allows the Borrower the ability to move through all “compliance” requirements in a very efficient manner. Additionally, the process provides you with the complete protection of your capital, and of yourself from becoming involved with any illicit funds. These steps have been established after many years of perfecting our processes, and ours still remains the best method, for you to get to the point of receiving funding expeditiously.

 

Many clients believe that they have a “better way” of doing things. This always results in becoming mired in unnecessary delays, with the potential outcome of being denied the loan, because the alternate methods do not meet the stringent requirements of our regulatory bodies and/or Insurers. The methods offered that guarantee your money are in use because they work, they provide full 100% coverage of your Initial Capital, and they absolutely will always be accepted by the “Compliance” process.

 

This is not to suggest that Term Sheets or Loan Agreements cannot be modified to suit your specific project; they can. However large-scale rewrites are discouraged. Edits to third party documents such as the “Bank Guarantees”, “Standby Letters of Credit” or “Insurance Documents” are entirely non-negotiable, as they are designed to meet the regulatory requirements of the Banking and Insurance industry. Similarly, because we are so tightly integrated into that same fabric, we must have our Procedures and Agreements structured in a manner that is congruent with those regulations. What seems like a “simple adjustment” on your part, can amount to a change that will cause our deal package to fail compliance, thus preventing your loan.

 

These processes and protocols are carefully designed to best protect your interests, while moving you successfully through the system of checks and balances that keep you safe, and to allow us to do what we do best – guide you to successfully funding your project.

I, _____________________________________________________________________________, (Client’s Name - PRINT) of ___________________________________ (City, Country) hereby confirm on this ________ day of ______________________, 20______, that I have read the entire “LENDER FAQ” document, and fully understand both its contents, and its implications as relating to the overall Funding Processes, Requirements, and Protocols.

_______________________________________________________________________________________________

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