Online trends show a resurgence of NO collateral, financials, or bank statements required major project finance in early 2018. This is an alternative option for borrowers that may not meet any typical collateral, financials or bank statement requirements by most asset-based funders, debt capital lenders & securities equity investors.
The rest of the story behind NO collateral, financials, & bank statements project finance is that either the borrower has an owned or leased bank guarantee (BG’s) or has POF’s collateral enhancement instruments or ReInsurance or an insurance guarantee or surety bond. To insure is not the same as hard asset collateral you currently own.
Today we will focus on insurance guarantees or Surety Bonds.
Surety bonds are paid for as a PERCENTAGE OF THE FACE VALUE of a bond on an annual basis. National prices range from 1% to 15%. Underwriting guidelines are mostly based on borrowers personal credit score. Other risk tolerance factors may or may not include;
(a) personal credit
(b) CASH on hand (to buy the bond)
(c) industry experience
(d) personal financials
(e) business financials
Project finance approval once you have an insurance guarantee or surety bonds can be as quick as 3 business days and generally cost from 3% interest annually for the funding; which is separate from the acquisition cost for the bond. Generally bonds below $250,000 costs 3% of face value. Funders don’t issue bonds.
High value financial guarantee bond issuers up to $200M are a >phone call away<. The premium cost for bonds over $1M are usually 10%. Such bonds are guaranteed with either full collateral or an Irrovocable Letter of Credit (ILOC).
If you are meetingfundingapprovalcriteria.com for this kind of project finance you could alternatively lease or buy a bank guarantee for about the same cost as a surety bond. Lease/buy of BG/SBLC/MTN sources are a >phone call away< IF you are a contractual client with POF’s. Note the bond is to get approved for project finance that may have to be repaid on top of annual interest fees. Meanwhile having the BG/SBLC/MTN monetized is usually non-recourse asset-based funding and no repayment required.
The advantages of financial instrument leveraging for project finance (including film finance) was mentioned in this blogfeed nearly 5 years ago at;
Assuming you then owned a $100M+ financial instrument issued by a Top 25 global bank; you could not just monetize it but leverage it at least 50% over face value by entering specific PPP a >phone call away< and mentioned here in a 2-part blog post;
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GLOBALCROSSROADSCAPITAL.COM is a US Vet-owned IR media firm and is not a funder, lender, investor, buyer, seller, trader, distributor, free advisor & analyst, or broker-dealer. If you have a current need and can show eligibility for any of the above funding options you must be an IR client to proceed. The 1st step to proceed is to fill out the preliminary assessment >INTAKE FORM< on our company website and wait for staff to reply. The company website can be accessed in the orange url above or see CONTACT page in the heading at the top of this blog feed.