Borrow Collateral Only
Loan collateral is an asset used as security to ensure the repayment of the loan.
US$2m - US$100m of loan collateral immediately available
If your proposition aligns with our criteria, we can move quickly to deliver a formal funding offer.
Why use loan collateral?
- Do you have a loan offer, but not enough hard collateral security to close?
- Or do you have a project, or a deal and you need hard collateral security or more than you presently have?
- Or do you need funding for your project, and you do not have hard collateral to offer as security to your lender?
Loan collateral support
We provide on full risk, tangible development land, real estates or property to support businesses that require additional security to grant to a lender, funder or project partner to secure your deal.
Examples of loan collateral support include
We can quickly and efficiently provide tangible assets by way of development land, real estate or property, fully appraised and available for your lender or counterpart to re-appraise as they see fit and when agreed, for them to take first / senior lien (first charge) over the assets for their security. If you default, they can call upon the security. This is a full risk accepted provision, it is not a lease, it is a full pledge on full risk.
How It Works
Once you have determined the level of collateral security you require, we will provide a cost estimate for both the setup process and the ongoing provision of services. This includes a review of the intended use of the collateral and any additional expectations. There is no charge for this initial consultation.
If both parties agree to move forward, we will execute an Initial Agreement. At this point, an arrangement fee becomes payable.
Following that, we will structure and secure the necessary collateral. A Collateral Commitment Agreement is then executed, and a commitment fee is payable upon signing.
From this stage, the collateral is reserved and formally placed. Your funders or partners may then undertake any due diligence they require—such as legal reviews, background checks, and third-party appraisals.
When your funders are ready to proceed, legal counsel is instructed to prepare and execute the final agreements. Your funder will then secure their first/senior lien (first charge) over the collateral.
Upon successful drawdown of your loan facility or completion of the relevant transaction, a completion fee is payable. A monthly service fee will then apply for the duration of the loan, until it is fully repaid and the lien/charge is released—at which point the transaction concludes.
Indicative Costs
US$2m of collateral security
- Initial Fee: US$25,000
- Collateral Commitment Fee: US$25,000
- Upon you having drawn down your loan: 3% of the value of the collateral.
- Thereafter 1.0% per month of the value of the collateral.
US$10m of collateral security
- Initial Fee: US$50,000
- Collateral Commitment Fee: US$100,000
- Upon you having drawn down your loan: 3% of the value of the collateral.
- Thereafter 1.0% per month of the value of the collateral.
US$25m of collateral security
- Initial Fee: US$75,000
- Collateral Commitment Fee: US$250,000
- Upon you having drawn down your loan: 2.8% of the value of the collateral.
- Thereafter 0.9% per month of the value of the collateral.
Our ranges
Our ranges
We presently have an immediately available resource pool into hundreds of millions. Our minimum collateral security provision is from US$2m although in exceptional cases we can go lower.
Though possibly still commercial, transactions requiring between US$1.5m collateral security and US$3m, can seem expensive compared to greater amounts because of the initial costs that apply no matter what size the collateral is.
- Transactions of over US$3m to US$10m, proportionately to the above will have a lower initial fee.
- Transactions of over US$10m to US$30m, have a lower proportionate fee across all categories.
- Transactions of over US$30m to US$100m, have a lower proportionate fee across all categories including the the initial fees.
- Transactions over US$100m are quoted on a bespoke basis.
Clients are responsible for their own legal fees and certain limited legal fees of ours for closing.
- Minimum Commitment term: 6 months
- Maximum Commitment term: 25 years
For further information or to discuss your requirements. Please contact us.