International European Bank Consortium [IEBC] – Debt Funding
All project financing commercial loans are always on the most competitive and beneficial terms, as there is fierce competition among lenders. It is in the lenders’ best interest to ensure the project is capable of repaying the loan in order to avoid defaults which are damaging to the lender’s bookable asset base.
This proprietary system of structured collateral loan funding gives clients all of the advantages of traditional commercial loans, with none of the disadvantages, and positions the client to more easily attract and close with lenders much faster than usual.
From the point of view of the borrower, this is the same as a traditional loan. They simply receive 100% of their needed working capital, and repay it over 10 years to the lender plus agreed upon interest.
The end result of the fixed annual payments is equivalent to 5% annual interest on the net capital they actually received.
In general we can summarize the standard, basic loan terms usually resulting from our group’s institutional Funding Support services for commercial project loans, as follows:
100% of Net Project Capital
The loans always give 100% of capital needed to complete the project, simply by providing the right amount of supporting collateral assets, and raising the loan amount to include the costs of the discount third-party collateral.
Highly Competitive Applications
Our institutional providers’ proprietary work structures third-party collateral assets, with A-rated monetary instruments of guaranteed face value, as solid and internationally universal Collateral for lenders. They add a supplement to your business plan presenting the assets and loan structure to lenders, with all details and supporting documents. This makes your loan applications super-competitive, giving the best possible tangible Collateral protection to lenders.
10 Year Loan Period
The loans are normally for 10 years, since the collateral assets are usually 10-year financial instruments.
Low Interest Rate
The resulting loan structures (including outside collateral assets) typically have an “equivalent interest rate” (on the “net working capital” actually received) of only 5.0% annual.
A 1-2 year “deferment” is common when needed, usually structured in by adding an interest reserve fund on to the loan amount.
There are never any penalties for early repayment. Lenders of major project financing packages never discourage the borrower from early payments when it is convenient for the project.
Because of 100% or more collateral coverage from third parties, the loan is fully Non-Recourse, with no corporate or personal responsibility whatsoever.
Total closing costs and fees for all aspects of the funding package are normally 5.0% of net working capital received by the client. These are structured into the funding package together with collateral costs, do not affect the end results or terms, and are otherwise “not noticeable” to the client.