PRIVATE FUNDING WORLDWIDE

Term Financing:

Summary:

Highlights: 

• Financing is available for 100 % or more as desired. The Loan amount offered is based on what the project can afford, meaning that the Loan can be issued for any amount that is supported by the Income stream that is “guaranteed” to be received by the project from its’ contractual commitments with any Investment Grade or qualifying entity. Therefore, the project is not limited to any specific amount it wants to borrow, and there are no restrictions for “Loan to Value” (LTV), or “Loan to Cost” (LTC). The Lender will evaluate what the Income stream will be for the project from the Contracts that the project has with qualifying entities that want to use the facility or purchase the products the facility produces, and then base the Loan amount on what that “guaranteed” Income stream can afford.

(e.g.: The Loan request is for $ 20 Million, but the Income stream by Contract with an

 “Investment Grade” entity supports $ 100 Million. You can request $ 100 Million.)

• There is no Equity Investment required from the Principal. The principals are not required to come up with any percentage of the Loan amount (Equity Investment) in order to obtain it. The principals do not need any money for “Good Faith Deposits”, “Down Payments”, or are otherwise expected to “contribute” any money at all to secure this financing.

• There are No “Cash Out” Restrictions. The Principal can use the excess Cash from the proceeds of the Loan they qualify for to start a 2^nd facility, use as a reserve fund for operational problems that may arise, invest in other areas of interest to them, or for any other reason whatsoever.

• The Lender wants No Equity. The Lender does not request, or demand, any Equity Ownership, or “seats on the Board of Directors”. The Lender is only concerned with the projects’ ability to guarantee that the Income stream will be sufficient to guarantee the payments will be made in full, and on time. (per terms of Contract from the client.)

• Loan repayment terms of up to 25 years. This can be a major help for those firms or projects that have long-term Contracts, or require some flexibility during the initial start-up years of operation to reduce Costs.

• Loan Process can usually be accomplished in 4-8 weeks. This will depend on how organized all the parties concerned are, and whether all documentation needed can be provided.

Other:

There is a Pre-Payment Penalty: But not one makes the Loan “unfeasible”, or will otherwise become a detriment to the project. This does not mean that the principals cannot pay the loan down at some percentage acceptable to the Bondholders each and every year. The principal just cannot pay the Loan off entirely in just the first years unless they are willing to pay a “penalty” for the “privilege” of being in a position to do so.

• The Loan may/will require a “Guarantor”. If the project requires some time to construct a facility before the Income stream can start to support the project, a “Guarantor” may, or will, be needed to guarantee the Loan against Loss during that period of time. The “Guarantor” can be an Entity, a known Corporation, or an Individual. The Lender will require that any Guarantor being considered to guarantee their Loan must have the financial capability of being able to guarantee at least 105 % of the Loan Amount being issued for that period of time until the Income stream from the projects’ operations can support the payments associated with the Loan. The Guarantor, and their assets, can then be released from further responsibility.

• The Loan will require that the Income Stream is “guaranteed” against Loss. After the project has been constructed and is operating, the Lender will require that the Income stream is guaranteed against any interruption, or Loss, that may affect the projects’ ability to make the payment associated with the Loan. The issue here for the Lender is to ensure that the payments are made on time, and in full, if the plant does not, or cannot, operate for any reason due to:

• A breakdown for any length of time of the equipment or any component that makes the product or service work properly,

• A permanent failure of the equipment to be able to work, or a breakdown of a component, or the whole device, that may take months to replace or repair,

•  Excessive downtime for maintenance that may affect the asset balances of the project to make the payments, 

•  A serious disruption to the business stream, or the loss of a major client or other provider of the business that the plant needs to continue to operate and make the guaranteed payments, or, a Natural Disaster