Innovations in Lending Increasing borrower’s ROI.
- "A proprietary process protected under a mutual NDA"
- Using a secure 5x on cash to loan advance structure.
We offer 5x leverage on cash by focusing on two key elements
- Strength of the management team
- borrower ability to contribute 20% of the loan request in a short-term cash deposit.
Once pre-approved proof of capital deposit is required.
Post Funds Verification:
- LOI is issued, naming: fund, attorneys, custodial bank, bond issuing and bond insurance companies.
Borrower deposit is secured by an investment grade insured* corporate bond
- Submit an investment deck to me for review.
- If I like it, we do a call with the borrower and referral partner.
- If that goes well, I’ll send it to underwrite for consideration.
- If they like it, we do another call with underwriting.
- If that goes well, we request personal financial information on any personal owning 25% or more of the borrowing entity and a copy of a passport for owners of 5-24.99% of the entity.
- POF (Verification of deposit)
- LOI is issued for borrower’s review and due diligence.
- Once borrower accepts LOI loan docs are issued.
- Borrower signs loan docs and makes the 20% of loan amount deposit in the custodial bank and an investment grade insured bond is issued in the depositor’s name to be held by borrower until funding for repurchase
- At funding, bond is exchange in return for borrower’s cash deposit.
*What Is Bond Insurance? Bond insurance is a type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default.
David D McElroy