Loan Process
The Loan Process is a very simple 5 Step procedure that takes the Borrower from the Application phase, through to the Disbursement Phase of the transaction. It is very important to understand that when dealing with a "Private Lender", the steps that must be adhered to, are very stringent. It is a fallacy created in the minds of Borrowers that becaue it is "Private", that the entire deal structure is "negotiable". This is untrue.
Because every facet of the transaction is performed within a Regulated Framework, (from the posting of your Initial Deposit, to the structuring of your Credit Facility), the Borrower must be diligent to follow the steps. They are simple, logical and safe; however, they must be followed to the letter, and in a specific order.
When you are introduced to the Lender, they will provide you with a "FAQ" that outlines every aspect of the Loan Program that you are applying under. They will explain all of the same steps that are outlined here, but they will go into even more detail with you.
1. Application & Fee
Application Submitted with a $25,000 (USD) Fee Payment.
Aside from the guarantee of your file being accepted, this will also cover the Due Diligence costs of assembling and assessing the File, and preparing it for submission to the Lender.
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(Note: Approval is “Guaranteed”; however, that assumes that there are no legal issues with the file; either with the Applicant, or the Project itself. Submissions that are found to involve applicants with a criminal or a litigious history, or Projects in bad jurisdictions/politically unstable regions, will not be approved).
3. Loan Agreements
At this juncture, the Applicant will wire $30,000 (USD) to the Paymaster, to cover the costs of developing the Final Loan Agreements, working with international Lawyers to register local “GSA’s” against the Project (as the only loan collateral required), and to cover all other closing costs. This Agreement will be developed during the Compliance Period (see below).
5. Disbursement
Disbursement Begins:
Following the 60-90 (business) day Compliance Period, your Loan Proceeds will begin a monthly disbursement.
This schedule is based on a drawdown schedule that the Applicant has submitted in the Application Step.
2. Financing Proposal & Term Sheet
A "Financing Proposal" will be issued. This will outline the general steps that must be followed by the Applicant. (Note that as the file progresses, there may be some additional steps required by the Lender).
A Term Sheet will then be Issued within 72 Hours by our International Private Lender.
4. Compliance Period
With your Initial Capital in place, and your Term Sheet Signed, this begins the formal “Compliance Period,” where the Bank structures the Credit Line for the Lender, in order to furnish your Loan.
This period will take 60-90 Business Days, depending on the time of year.
Note that the Banks shut down these departments during summer (June-Sept 15), and during the month of December, until Jan 15, so it is wise to be mindful of this fact as it interrupts the calculation of "60-90 business days".
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