USAGE FEE PAID TO ASSET/COLLATERAL OWNERS

Collateral Based Funding

Collateral based funding is a financial mechanism in which the asset owner is paid an agreed usage fee or series of fees/profits for allowing the title of their assets to be leveraged for the purpose of generating profits. The fees paid to the asset/collateral owner within these arrangements are pure profit and has no loan attached.

 

·EXAMPLES OF ASSETS/COLLATERAL

  • Cash on deposit
  • Blue-chip stocks
  • Marketable securities
  • Commercial property
  • Factories
  • Industrial operations
  • Aircraft
  • Ships
  • Precious metals and stones
  • Cash-backed instruments
  • Real estate
  • Owned mines
  • Oil operations on owned land
  • Oil rigs

 

PROCEDURES

  1. Client brings forth comprehensive details of assets/collateral to be packaged for submission.
  2. The firm issues non-disclosure agreement (NDA) to client.
  3. Client signs NDA and complies with the firm’s requirements to leverage asset/credit.
  4. The firm issues Memorandum Of Understanding (MOU) document which outline immediate action to be taken by the firm. (Medium term MOUs are issued when applicable to transactions whereas 45 to 60 days are required to align transaction components.
  5. The firm issues Statement Of Action document that outlines the firm’s current business processes towards issuance of LOI and closing.
  6. The firm issues Letter of Intent (LOI) that outlines the firm’s clear intent to close the transaction. 
  7. Draft CONTRACT is issued.
  8. Both parties sign contract and transaction closes as per agreement.

 

General LTV information: CLICK HERE

General profit information: CLICK HERE

Broker notes: CLICK HERE

Disclaimer: CLICK HERE