Collateral-Backed Loans

Would you believe you could obtain funds for your business project - either to start a business or expand your present business, WITHOUT REPAYING THE LOAN PRINCIPAL?

Our innovative COLLATERAL-BACKED LOAN programs do just that! We locate collateral to repay the principal for you, using instruments from top world banks or excellent-rated life insurance companies. As a member of our worldwide network of esteemed Enrolled Consultants, you would have access to our database of over 20,000 funding sources worldwide, matching your project needs, with several possible Lenders and Investors. This may optimize your chances for success and a quicker funding.

The cost of the collateral is based on the maturity date of loan. The cost of the collateral is added to the loan. At the closing of the loan, this "over-borrowed" amount is paid to the Financial Institution in exchange for the collateral, which repays the loan principal at the maturity of the loan, this enables you to pay interest-only on the loan.

This Collateral Program creates, in effect, a sinking fund that enables those funds to grow to equal the principal amount of the loan at the maturity date. The longer the loan term, understandably, the lower the cost of the collateral, since the Financial Institution has more time to invest the funds received for the collateral.

This program may enhance your credit. With collateral for repayment of loan principal, the Lender evaluates you, the borrower and your project for the ability to pay annual loan interest. At the maturity of the loan, the loan principal is repaid by the collateral instrument issued by a highly-rated financial institution with substantial assets.

We locate the collateral that provides for repayment to the Lender at the maturity of the loan of any amount from $100,000 to $20,000,000 which equals the principal amount of the loan.

Getting started on this adventure in creative financing is quite simple. An Enrolled Consultant provides you, the Borrower, with a Purchase Order which you complete by listing the terms and conditions of the collateral that may be required by your Funder to guarantee repayment of the loan principal at the maturity of the loan. The collateral may be either a Certificate of Deposit (CD) issued by one of the top ten US Banks or an Annuity from a major life insurance company.

Your Enrolled Consultant sends us a copy of the completed Purchase Order and you send an initial payment, based on the amount of the collateral, of _ of one percent ($2,500 per million) towards the cost of the collateral to an attorney escrow account and within 10 business days we locate a highly-rated financial institution that indicates it will provide the Collateral, next we provide you with a Notice of Availability of the Collateral you requested with the name of the financial institution that intends to issue the collateral, you show the Notice of Availability to your funder.

At the loan closing, the fiduciary receives the total loan funds, makes a deduction for the cost of the collateral from the loan funds, gives the collateral to the Funder, pays the Financial Institution for the collateral and refunds the initial payment you paid towards the collateral and disburses the balance of the funds according to a Pay-Order signed by you, the Borrower.

This program provides borrower with a collateral instrument having a present value and face amount equal to the amount of the loan. This collateral is purchased from the lending bank by a Collateral Provider; this provides the lending bank with the funds it uses to make the loan.

This collateral is transferred to the Borrower. At loan closing, Borrower provides the Lender with collateral, the CD that lender has just issued. This CD has a present value equal to the amount of the loan and fully secures the loan principal in the event of default by Borrower. Since the CD has been issued by the lender, there is no problem with acceptability of the collateral.

The Borrower, obligated to make interest payments to the lender, must convince lender that sufficient cash will be generated from the business project to make interest payments on the loan.

THE TRANSACTION:
Borrower requires for project		$1,000,000
Collateral Provider buys collateral from lending bank, at a cost of		$2,000,000
Borrower receives from Lender		$2,000,000
Borrower retains for project		$1,000,000
In addition, the Collateral Purchaser receives at the closing, a Certificate that contains the irrevocable promise by the Lending Bank to pay the annual interest on the total amount of the CD.
* Note: all figures are approximate