FUNDINGNET LOAN SPONSORSHIP PROGRAM
Imagine…
A lending program that assists projects to be fully financed, while at the same time a “Project Sponsor” will enjoy a superior rate of return on their capital, without ever having to put their funds at risk, or ever having to be linked to any risk of the project they are “sponsoring.” Additionally, in the vast majority of cases, the participant's money never leaves their own bank account.
FundingNet's Loan Sponsor Program provides these benefits to projects and deal sponsors. Deal Sponsors participate in a federally regulated bond, 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.
By simply pledging funds to the bond (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 bonded 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 bond group's custodial banks, those banks are the same ones used with our Multiples Program - HSBC UK, Toronto-Dominion NYC, The Bank of Ireland and Commonwealth Bank in Australia.
Once you are introduced to the Bond Group, they will provide you with the full disclosure information about the bond (and the custodial bank, if one will need to be used), as well as all the related bond documentation. Loan Sponsors are encouraged to do their research and due diligence on this fully licensed, registered and regulated security, as it will stand up to whatever level of examination they require. NOTE ** This information can ONLY come from the bond group, as they are licensed to sell this security and FundingNet is not. We only refer groups to the Bond group, 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 Bond Group, but in almost all 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 Bond that is utilized to secure your position as a “Project Sponsor” is a fully licensed, registered and regulated security that is implemented for a specific goal; a 3rd party solution to protect your principal, and guarantee both your principal and interest. FundingNet has absolutely no involvement in the security, or any investment element of the deal. We are not part of the bond issue, or the bank, and have no involvement with the sponsor's funds; that is entirely between the participant and the bond group (all fully licensed and regulated entities). On the FundingNet/FilmCabbage loan side, the bond 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 Bond Issuing Bank, who handles the process with you from beginning to end. FundingNet will only reappear after you have finished with that process and secured your own Bond; however, at this point we will be dealing solely with the Project Owner requiring a loan, to facilitate their financing needs using our own capital.
At FundingNet, we never have any involvement with participant capital; your capital must always be held in a fully regulated and insured financial institution. While we are solely in the business of furnishing Private Loans, it is critical to have a partner that is beyond reproach, who can secure participating funds and provide them with a safe and reliable rate of interest for their time, effort and commitment to aiding business. In the case of the Loan Sponsorship Program, this bond issuing Bank acts as both “Issuer” as well as “Guarantor” of the bond. This is the culmination of an exhaustive, multi-year financial underwriting process that was performed by this Bank, combined with a full assessment of the historical returns behind the bond, in order to ensure that the promises being made by this Bond were feasible. The Bank is only willing to bond your funds under these terms because your funds are never put at any risk, or ever depleted. They then agreed to support the offered Rate of Interest with their own reputation, because there is a long track record of delivering these returns, and a Balance Sheet that fully supports the offer.
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 Settlement Agent/Bond Issuer. They will arrange for a call with you to discuss the Bond.
Once you have spoken with the Bond Group, reviewed the full disclosure package with your team, and you have asked to move forward, they will send you a copy of the actual Bond for your review. Once you have fully reviewed the Bond and all of the requisite disclosures and are satisfied that everything is safe and “as advertised”, you will then request that the Bank issue the actual Bond in your name
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. Once you are satisfied with the security of the process and safety of your principal, the Bond Group will walk through the process of obtaining your bond, always with options to leave your principal in your own bank. If you do need to move funds to one of the Bond Group's custodial banks, the custodial bank appointed will offer further bank-to-bank guarantees of your principal amount.
Your minimum expected commitment is 12 months. When the time comes that you wish to exit the Bond, the process requires 60 days notice to extract you from the program.
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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.