FUNDINGNET LOAN SPONSORSHIP PROGRAM
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 place their funds at risk, or ever having to be linked to the risk of the project they are “sponsoring.”
FundingNet's Loan Sponsor Program provides these exact benefits to projects and sponsors. Deal Sponsors simply participate in a federally regulated bond, where their capital is exposed to no risk. 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 absolutely does NOT encumber the sponsor's amount, or put it at any risk. FundingNet simply uses the additional credit to finance additional projects, entirely at our own risk. The benefit to the sponsor in this program is a virtually unprecedented rate of return on the bond coupon.
By simply pledging your funds of €1M euros or more to the bond, a project is then able to receive 1:1 Project Financing from FundingNet. And while FundingNet is lending our own funds to this Project and assuming all the risk of the project, your funds will be sitting safely in your Bank Account in a Federally Regulated Bank, earning an interest rate of 3.5% per month through the bond. That provides an incredibly attractive annual return, with no risk attached.
HOW IT WORKS
Our participating Bank is an Australian Banking and Investment Corporation (and is co-owned by a $1.7 Trillion-dollar Bank that ranks in the 25 largest banks in the world) and which is licensed through the Australian Financial Services License (AFSL, license number 3XXXX2), and regulated by the Australian Securities and Investments Commission (ASIC). Due to Banking Compliance Restrictions, on a public website we are not able to name the Federally Regulated Bank that will handle the pledging of your funds, the Coupon Bond, and the payment of your Interest. During your initial call with the Settlement Agent/Bond Issuer, this information will be provided in full as well as all the related bond documents, for any sponsor to do their due diligence on to whatever level they require.
Further, the Bond that is utilized to secure your position as a “Project Sponsor” is a fully regulated security that is implemented for a specific goal; a 3rd party solution to protect your funds, and your interest. FundingNet has absolutely no involvement in anything Bond related - we are not part of the bond issue or the bank, and have no involvement with the sponsor's funds - it is entirely between them and the bank. On the FundingNet/FilmCabbage side, the bond is simply the required "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 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 the Bank and secured your own Bond; however, at this point we will be dealing solely with the Project Owner, to facilitate their financing needs using our own capital.
At FundingNet, client capital is never held by our firm; your capital must always be held in a fully regulated and insured financial institution, and always under your ownership and control. While we are solely in the business of furnishing Private Loans, it is paramount that you have a partner that is beyond reproach, who can secure your funds and provide you with a safe and reliable rate of interest for your time, effort and commitment to aiding business. In the case of the Loan Sponsorship Program, this Bank acts as both “Issuer” as well as “Guarantor” of the Fully Regulated Coupon Bond that pays the Sponsor 3.5% per Month. This is the culmination of an exhaustive, year long financial underwriting process that was performed by this Bank, combined with a full assessment of our historical returns, 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 3.5% monthly Rate of Interest with their own reputation, because we not only have a long track record of delivering these returns, but we also possess a Balance Sheet that fully supports the offer.
HOW TO GET STARTED
If you are interested in becoming a “Project Sponsor”, all you need to do is provide us with your Full Contact Information and a recent “Proof of Funds”, 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, which is exclusively handled by the Bank.
Once you have spoken with the Bank 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. You will receive this Bond electronically, sign it, and return it back to the Bank. Your funds will either be wired to the Bank to be held in an account in your name, OR they will be lodged in your own account through a “bank to bank” process.
SAFEKEEPING OF SPONSOR FUNDS
If your Initial Funds amount to under €10M, You will work directly with the Bank to have an account set up in your name. You will then wire your funds to this account. Your funds will remain safely in this account throughout the duration of the deal, where they can never be depleted, and where they remain insured. Your Minimum expected commitment is 12 months. When the time comes that you wish to exit the Bond, the process requires 60 days to extract you from the program.
If your Initial Funds amount to €10M or more, your funds can remain in your OWN bank account where they currently reside, but they must be equivalent to at least €10M after an inter-bank “discount” is applied. When you are leaving your funds in your own existing account, the bonding Bank will “Discount” the value of your deposit by 20% before calculating your 3.5%/month interest. If you don’t want to have this “Discount” applied, then you always have the option of having your own account set up through the Bank, and wiring your funds to that Bank Account.
The choice is entirely yours.
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 contact you.