CD Collateral JV Program – NO RISK TO CLIENT – No Upfront Fees


English: View of a ScotiaBank facade in Amhers...

View of a ScotiaBank facade in Amherst, Nova Scotia.(Photo credit: Wikipedia)

For clients that want to pay no upfront fees to procure funding and are willing to accept a JV Partner this is the ULTIMATE PROGRAM. It does not get any better!

This is a program/product that produces a fully cash backed Bank Guarantee or Stand by Letter of Credit (in clients name) that is used as 100% collateral for a loan.

It’s for funding amounts of $25M or more. The client puts up 4% (or $1M minimum) of the required loan and the JV Group invests the balance. The client gets 80% of the project and the JV Group gets 20%. (Can fund less than $25M with $1M minimum participation amount).

The client participation amount is NEVER AT RISK as they receive a Certificate of Deposit (1 year maturity) as complete collateral for their cash. The CD interest is paid upfront and ranges between 6% and 10%. Client can withdraw the pre-paid interest at any time. (The bank that issues the CD is Scotiabank, rated the second safest bank in the world).

The client can actually begin the process by walking into Scotiabank with the program Sponsor to complete CD documents! This is as real as real gets!

The Bank can guarantee performance! The Sponsor pays a 5% fee to client if they don’t perform!

Clients do not have a problem finding seed investors to put up the 4% (if they don’t have their own funds) since the funds are completely secured and receive a 6% to 10% interest return which is paid upfront!

The JV Group invests the necessary capital to produce an irrevocable fully cash backed, one year fully callable by the sole beneficiary (the Lender) new issue Bank Guarantee or Stand by Letter of Credit. The instrument comes from Credit Suisse, Deutsche Bank, Barclays or HSBC. All are tier one, top world Banks.

The instrument is guaranteed to be delivered in 14 business days from the signed contract date to the Lender. Instrument is delivered from issuer’s Bank to Lender’s Bank via MT760.

The Lender makes the loan using the instrument as complete collateral for the loan. If using our Lender, upon receipt of the instrument the Lender typically funds within 5 business days.

Lender Information:
Client is free to use own Lender or we can provide. Instrument is delivered via MT760 to Lender, which serves as complete collateral for the Loan.

Project Size:
Minimum $25M to no maximum.
Participation amount is 4% ($1M minimum).
Projects under $25M down to $10M are acceptable but require a $1M minimum participation.

Type Projects:
There are no restrictions on the type project or business as long as it makes financial sense, will produce a profit, not related to undesirable industries (porn, drugs, etc) and must be located in a politically stable area.

Time to Delivery of Instrument:
Can be completed in less than 30 days.


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