Non-Recourse/Non-Repay Loans

BY INVITATION ONLY

FundingNet receives applications for loans of all sizes, and from any number of industries.  Obviously, some of the projects applying for funding are more attractive than others.

 

When we see a project that we particularly like and believe will be highly profitable, we will extend to them an offer for a different kind of loan - a non-recourse loan with no interest, that they do not need to repay.  FundingNet will absorb both the principal and interest in order to participate.  As we will be fully funding the project out of our pocket with no repayment required, we will require some level of equity position in the project for the sharing of profits.

 

The requirements to be invited are much the same as the 4-1 program, in that the borrower must already have raised at least 20% of the funds needed to complete the project.  They must be able to produce those funds in cash and be able to position them as the "loan loss reserve".  Doing this will be able to generate a loan of 4X the initial amount - but as long as the funds remain on deposit, undepleted and unencumbered, there will be no interest at all on the loan and no principal due.

 

We can even set this up in such a way that can repay investors or contributors that provided those initial funds, which puts everyone in a fully restored position, the project fully financed, and the loan completely forgiven.

Please ask your agent or broker for full details.  Remember that this is an INVITATION ONLY program.  The requirements to qualify will be the same as the requirements for the 4-1 Program, and FundingNet will decide which projects it wishes to extend this offer to.