FUNDINGNET LOAN SPONSORSHIP PROGRAM
A lending program that assists projects to be fully financed, while at the same time offering a “Project Sponsor” a superior rate of return on their capital, without ever having to put their funds at risk.
FundingNet's Loan Sponsor Program provides these benefits to projects and deal sponsors. Deal Sponsors participate in a federally regulated security, working only with licensed/regulated entities, where their principal is always guaranteed on multiple levels. As a result of their participation in that bond, FundingNet (through our relationships with our banks) is afforded additional credit in the same amount of the sponsor's participation. This does NOT encumber the sponsor's funds to that additional credit, or expose it to any risk. FundingNet uses the additional credit to finance more projects, entirely at our own risk. The benefit to the sponsor in this program is their rate of return on the bond coupon.
Through client participation in the Loan Sponsor Program (minimum participation of $1M USD), additional projects are then able to receive Project Financing from FundingNet. And while FundingNet is lending our own funds to this Project and assuming all the risk of the project, participants funds are always fully secured and guaranteed by licensed securities companies and by federally regulated banks, earning a superior interest rate through the bond. Contact us to find out what the superior rate of return for this program currently is.
HOW IT WORKS
When you discuss your participation with the Bond Group, they will explain the processes by which your money stays in your own account. In the rare occasions you need to move your money to one of the securities group's custodial banks, which are all top tier banks with a worldwide presence.
Once you are introduced to the security issuer, they will provide you with the full disclosure information about the security (and the custodial bank, if one will need to be used), as well as all the related documentation. Loan Sponsors are encouraged to do their research and due diligence the security security, as it will stand up to any level of examination they require.
NOTE ** This information can ONLY come from the securities group, as they are licensed to sell securities and FundingNet is not. We only refer clients to them, and if the potential participant decides if they wish to proceed; FundingNet derives benefits exclusively from the additional loans that can be provided when new participants enter the program.
Participants will get full details from the securities, but in most cases at NO TIME ARE YOUR FUNDS REQUIRED TO LEAVE YOUR BANK ACCOUNT (assuming that you are dealing with a top tier bank in acceptable jurisdiction). If you are not dealing with a top tier bank, you may be required to use one of the custodial banks described in the paragraph above.
Further, the security that is utilized to secure your position as a “Project Sponsor” is fully licensed, registered and regulated. It is designed as a 3rd party solution to protect your principal, and guarantee both your principal and interest. FundingNet has absolutely no involvement in this security, or any investment element of the deal. We are not part of the securities issuer or the bank, and never have any involvement with the sponsor's funds; that is entirely between the participant and the security issuer (all fully licensed and regulated entities). On the FundingNet / FilmCabbage loan side, the security is simply the "safekeeping mechanism" to ensure any funds being used in the program are not depleted or encumbered throughout the loan cycle - the interest aspect of the bond is entirely between the "Project Sponsor" and the bonding Bank.
To facilitate the process, the “Project Sponsor” is introduced direct to the Securities Issuer, who handles the process with you from beginning to end. FundingNet will only reappear after you have finished with that process; however, at this point FundingNet will be dealing solely with the Project Owner requiring a loan, to facilitate their financing needs using our own capital. The Loan Sponsor will not be involved in that loan, and will deal only with the securities issuer regarding their own returns and principal.
HOW TO GET STARTED
If you are interested in becoming a “Project Sponsor”, all that is required is your CIS (Customer Information Sheet), Contact Information and a recent “Proof of Funds” (showing you have the minimum amount of funds readily available), and we will pass this information on to to the Securities Issuer. They will arrange for a call with you to discuss the all of the details of the transaction.
Once you have spoken with the Securities Group, they will provide all information about the security for you to review with your team. You can determine whether or not to proceed from that point.
SAFEKEEPING OF SPONSOR FUNDS
Minimum participation level is $1M USD. You will work directly with the bank, securities company and custodial bank and your funds can be in Financial Safekeeping through any of the same methods described on our "Multiples Program" web page. Your minimum expected commitment is 12 months. When the time comes that you wish to exit the program, the process requires 60 days notice to extract you from the program.
FundingNet has been providing bespoke, Private Financing to global projects for nearly twenty years. It has been our ability to offer “wholesale” rates and unparalleled terms and conditions that has set us apart from every type of conventional Lender in the market today. Now, through our “Loan Sponsorship Program”, we have created an opportunity where traditional businesses and project Investors no longer need to expose themselves to the growing risks associated with project finance, yet they are able to reap the massive rewards that FundingNet is able to create for them in a risk-mitigated environment.
If you wish to Learn more about becoming a “Loan Sponsor,” contact your FundingNet Associate and Provide;
i) Full Contact Information
ii) Recent Proof of Funds
If you do not have a FundingNet agent, please reach out via our "About/Contact" page and a FundingNet representative will be assigned to you.