BG and SBLC Loans… 95% LTV through a private lender...can do IBOE, MTN, LTN to
Here are the procedures: Please see the Points of Interest at the bottom if you or a client have a need for this service.
1. Complete attached application, plus any supporting documents
2. Due Diligence
3. SWIFT
4. Close Currently it is 5 business days for files to get reviewed by underwriting. Then it is 1 to 2 business days for review.
Minimum instrument value is $1M USD. Maximum loan amount is $2.5B USD.
A 5% origination fee and 14% annual interest rate will be deducted from loan proceeds at closing.
Note: It's not through a bank, it's a private investor who has been doing this for 10 years. The process normally takes around 10-business days. There is no need for a personal guarantee, however, personal information will be required in case it is discovered after funding that the loan was acquired fraudulently.
Once the loan is paid back, the instrument is returned. If the loan is not paid back the instrument is cashed.
The lender will issue a contract as well as references that can be called on.
Q: Will a BG on Euroclear work in your program for the 95% LTV
A: The answer is "yes", if client can do SWIFT MT760.
Q: What about Bonded Promissory Notes?
A. 50% LTV
Q: What is the LTV on an IBOE bond?
A: 50% LTV
Q. What is the LTV on MTNs?
A. MTNs are at 50%
Q. Can you do Ven bonds?
A. Yes, at 50% LTV
Q. Can you LTNs at 50% LTV?
A. Yes, and they do not have to be on Euroclear
Please see Points of Interest below:
Sample from 10/14/2013:
One client's numbers:
Face amount of BG $100,000,000 USD
95% $95,000,000
Less 5% fee $4,750,000
Less 14% interest $13,300,000
Net amount to client $76,950,000 and no payments.
Points of Interest:
1. There will be a due diligence fee. (It is not standard, but is based on size). Anyone not willing to pay up front will never get financing, so don't worry about them. They always come back if their serious. They will first go through your application and see if you are a good candidate, so nothing is due unless they feel you are a viable candidate and you make the decision to move forward. Due diligence fee "after" your file is submitted for review and then if they feel you are a good candidate and you wish to proceed. Not before... I personally, collect no money.
2. (According to the "loan app", it appears that borrower / client must be in business at least (3) years in order to apply)---> For loans secured by instruments, this is not required.
3. Does not matter if your are start up as long as the assets are there for collateral.
4. 5% is the lender's fee and does not include any third parties.
5. The due diligence is paid to the lender. Lyon Financial does not get paid on this transaction.
6. The fee is nonrefundable. The only reason there would not be funding is if there is failure on the client's side to perform.
7. Third party fees are between the client and the third party.
8. All fees will be disclosed to the client in an LOI from the lender.
9. Procedures may not be altered.
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