Details

When you have the capital but want to mitigate the risk... look no further than our matching 1X Loan.

If you have a $5M project and you have $5M in cash, you could simply fund your project with your own capital and that would be that. BUT what if there was a way to fund your project WITHOUT PUTTING YOUR CAPITAL AT RISK? Now there is a way; with our 1X Loan Program.

With this matching loan the maximum loan amount is equal to the SAME amount you put into our federally regulated private bond. The loan is paid out at 5% per month and is fully disbursed in 20 months. The 5% per month is repayable AND in addition to the loan, you would also receive a 7% per year bond coupon that is NOT repayable.

This way your project is completed with the loan funds and because the loan is secured by the project, you never have to risk any of your capital. And in the unlikely event that your project fails, the lender has assumed the risk and takes the loss for the project's inability to repay the loan. The other significant benefit here is the bond coupon offsets all carrying costs and fees associated with the loan, so essentially, this is free money.

Here is an example:
1. The Client puts $5M into the bond and receives a $5M loan.
2. The financing expense on the loan over the 4 year term equals approx. $1.1M
3. The 7% coupon on the $5M yields $350,000 a year over 4 years or $1.4M

As you can see the coupon more than covers the financing expense and using this approach your capital is never at risk. If the project were to fail, the lender would take over the project and you still have your $5M securely parked in the bond.

ABOUT THE BOND:
This federally regulated private bond is with an Australian Banking and Investment Corporation co-owned by one of the top 25 banks in the world. The investment bank is licensed through the Australian Financial Services License and regulated by the Australian Securities and Investments Commission (ASIC). For compliance reasons we cannot publish the name of the bank. The minimum to enter the bond is equivalent to €1,000,000 EUR (or higher, in €500K increments).

LOAN TERMS:
The loan is paid out 5% per month over 20 months. Interest Only at 3.5% on a 48 month term and is secured by the project itself. Bond coupon is 7% per year across the term of the loan.

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Disclaimer: DealStream has not independently verified any of the information in this listing and makes no warranty as to its accuracy or completeness. This listing does not constitute an offer to sell, solicit or make an offer to buy an investment interest. Offers to sell, or the solicitation of offers to buy, any security can only be made through official offering documents, such as a subscription agreement and private placement memorandum.