Frequently Asked Questions

  • Main Features

     

    • 4-8% Interest-only rate! (APR)
    • Funding Range USD $3,000,000.00+
    • 10 Year Term (120 Months)
    • Approvals in 48 Hours
    • Funding within as little as 30 banking days (for large projects)
    • NO CREDIT CHECKS
    • NO PREPAYMENT PENALTIES
    • NO PERSONAL GUARANTEES
    • NOT purely based on revenues of business
    • Previous bankruptcies allowed
    • Cash wired directly into business bank account
    • 2-3 year payment holiday
    • After holiday period, interest is then due monthly
  • Our process

     

    • 1. Pre-Approval
      • Mutual Confidentiality
      • Project Overview
      • Detailed FAQ
      • Proof of Funds
      • 90 Day Pre-Approval
    • 2. Conditional Pre-Approval
      • 21 Day Conditional Loan Offer
      • Loan Acceptance
    • 3. Final Approval
      • Final Approval Awarded
      • Loan Docs Issued
      • Signed Loan Docs
    • 4. ICA Funding
      • ICA Wired
      • Final Underwriting
      • ICA Sent To Third Party Trustee (Attorney)
    • 5. Closing
      • Funding Schedule Executed
  • The Costs

     

    • 1. 25% ICA Advance Cost
    • 2. 9% One-Time Establishment Cost
      • Paid out of loan principal at closing
      • For costs such as lending + legal + closing + custodian + broker commissions etc
    • 3. Customization Fees
      • Application fees are only charged for nominated loan customizations, which are clarified and charged prior to any approvals
  • What Is ICA?

     

    • Interest Advance Cost
    • This mitigates the risk of waived payments for the first two years
  • Time To Get Funding

     

    • 1. Tranche Payment 1 = 33.33%
      • Transferred 30-90 banking days post underwriting completion
    • 2. Tranche Payment 2 = 33.33%
      • Transferred 30-60 banking days after Tranche 1
    • 3. Tranche Payment 3 = 33.33%
      • Transferred 30-60 banking days after Tranche 2
  • Our Collateral

     

    • 1. ICA Advance Costs
      • (Interest Control Account / Interest Cost Advance):

        Which is the prepayment of interest (payment holiday period + risk premium). This is our primary securitization method. It gives optimal balance between risk management and the best possible loan terms. Contained within this charge is the first 2-3 years of interest payments. Plus an approved risk premium as surplus (ICA credit). In exchange for this upfront payment, the borrower gets a 2-3 year payment holiday at the beginning of the loan. After the holiday period, the ICA surplus is retained as credit. Which is returned to the borrower at final settlement. We’re also able to drawdown from the leftover surplus if we need to recover losses. So if a default occurs, we’ll do this before utilizing the company assets.

    • 2. Your Project
      • We have a claim against all business assets until the loan is repaid. We keep first position over all company assets. So that in the event of default, we’re able to use the company assets to recover our losses.
  • Minimum Loan Size

     

    • Currently, our smallest loan size is $20M USD. Which requires at least $5M liquidity to cover upfront costs/deposit
  • Length of the Loan Term

     

    • 10 years (120 months)
  • Where do the funds come from?

     

    • These funds from a private capital fund. There is no bank involved. They have the financial capacity and resources to fund a range of projects. We consolidate funding opportunities for them to fund. They underwrite the financing. They maintain appropriate levels of liquidity to ensure their ability to fund.
  • Pre-Approval Expirations

     

    • Term Sheets have an “Expiry” (also known as the “valid through to” date). When we issue one, we must set our loan money aside, with the expectation the deal will close in a timely fashion. You’ll need to reapply if you’re not advancing your deal before the term sheet expires. When this happens, you may need to pay a “Resubmission Fee”.
    • This Fee covers all our Costs incurred structuring your deal the first time around. Legal, Due Diligence, issuing Insurance (SKR), and time committed from the outset.
    • Our Resubmission Fee begins at $23,750 and can be higher based on the complexity of the deal. To be clear, if you meet the specified time frame required the first time around, there’s no upfront fees. Unless you nominate specific customizations for your FELOC.