Foreign business loans may be a viable funding option for your business if you have overseas connections. Many instantly think of the World Bank when considering acquiring financing from foreign sources. However, the World Bank and its’ components were designed for large reconstruction projects and for the development of low and middle-income third world countries. The small businessperson is not their primary focus.
Where To Look For Foreign Business Financing
Foreign banking is usually represented in the U.S. in one of four ways. The banking entity may be a branch, an agency, an international banking facility or a foreign owned bank. The majority of foreign banking will be found in 3 states: California, Illinois and New York. Of course the physical location of a lending institution is not as important as it was several decades ago, due to electronic banking and online services.
Foreign Business Loans Lending Criteria
Foreign banks’ lending criteria will be very similar to the requirements of a U.S. financial institution. So, if your lending proposal does not make good business sense to a U.S. bank, applying to a foreign bank probably won’t yield any different result. A foreign lender may be more willing to work with a business from its’ own country or a U.S. company that doing business in its’ home country. This is a natural assumption but it is not a guarantee that if you go to a foreign bank with a proposal that your company with do business in that bank’s home country that you will be approved for a loan. Your proposal will still have to make economic sense for all involved.
As with any business endeavor, do your due diligence when attempting to get a foreign business loan. If something sounds to good to be true, it probably is.
Project Fund Application
There are a variety of non-bank lending products available, such as asset-based loans, peer-to-peer loans, and crowdfunding resources. These can be used for anything from starting a business, working capital, or financing all types of projects. We offer various alternative financing methods for funding projects of all sizes, we will consider all types of projects but we prefer projects related to the following:
- Humanitarian
- Education
- Medical
- Renewable Energy
- Agriculture
- Infrastructure
- Transport
- Water
- Housing
- Job Creation
- Real Estate
- Mergers & Aquisitions
- Business Expansion
- Technology
- Leisure
- Entertainment
- Manufacturing
We require an equity position as a joint venture partner for the project the amount of equity we require depends on the amount of funding required, type of project and the percentage of the funds available from the project owner. We only fund projects on a non re-course basis with a minimum 50% equity position except for humanitarian projects which we can fund up to 100% on a non-recourse basis.
We first need a Feasibility Study or Executive Summary of the Project in English, with details on the following:
- Total cost of the project?
- How long it will take to complete?
- Breakdown of the Monthly drawdown schedule to complete project?
- How much funds you have available to start the Project?
- Expected Yearly profits?
Property Funding
Property Loans
These include bridge loans, hard money loans, long term debt, preferred equity, joint venture equity, loan syndications, construction loans, development projects, property acquisitions, recapitalizations and much more!
We have a capital network of select hedge funds, family offices, opportunity funds, REITs and private equity firms, all flush with capital looking for ways to deploy it… and for the right transaction – speed and efficient closings are the norm.
Summary of the scope of this capital network as follows
- Preferred Equity/JV
- Distressed Debt/Hard Money/Unique Situation Bridge Loan
- Construction
- Opportunity Funds– Opportunity funds can be very creative and will look at a very, very wide spectrum of investments. These include both debt and equity. Typically, $5M and above.
PREFERRED PROJECT TYPES NOT LIMITED TO:
- Senior Care
- 55+ Senior Non-Hud
- Hotels (flagged or with major operator)
- Multi-Family
- Mixed Use
- Condo’s and Condo Conversions
- Large Land Purchases in Major Cities with Vertical Schedule in Place
- Large Solar Facilities
- Other on Case by Case Basis
- Bridge Loans: $5M to $20M
- Types: Construction, Refinance, Purchase
- Territory: USA/Canada (including Hawaii, Alaska)
- Term: 12 months to 24 months
- Rate: 8.9% to 11.9%, fixed
- LTV/LTC: 55% to 75% (subject to property type)
- PPP: 6 months interest
- Points: 3% to 5%
- Closing: 10 to 30 days
- Fees: Appraisal at cost; Site inspection, Lexus Nexis Search
- Require: PFS, Company and Individual Resumes, Executive Summary with history, 5-year proforma, pictures, appraisal if available, property owned list, pre-sales or pre-lease list, purchase agreements.
- Bridge Loans: $20M to $95M
- Types: Construction, Refinance, Purchase
- Territory: USA/Canada/ Caribbean/ PR/ Bermuda/USVI
- Term: 12 months to 60 months
- LTV/LTC: to 25%
- Rate: 2.5% to 4.9%
- PPP: 12 months
- Points: 3%
- Closing: 30 days to 45 days
- Fees: Appraisal at cost, Site Inspection, Lexis Nexis Search
- Require: PFS, Company and Individual Bio’s, Executive Summary with history, 5-year proforma, pictures, appraisal if available, property owned list, pre-sales or pre-lease list, Purchase agreements
- Equity: $20M to $250M
- Types: Purchase, Construction, Refinance
- Territory: USA/Canada/Caribbean/Bermuda/PR/USVI/Mexico/DR/Panama/CR/Colombia/Brazil/parts of Europe
- Term: 3 years to 10 years
- Leverage: to 90%
- Rate: Participation of 30% to 85%, with waterfall for 3 to 10 years beginning at 3% and increasing
- PPP: TBD
- Points: 3%
- Closing: 10 days to 30 days
- Fees: Standard Closing Costs + Minimum Application Fee
- Require: Full Documents Sets
Standard & Specialty Debt Funding
- Debt: $3M to $350M
- Types: Purchase, Construction, Refinance
- Territory: USA/Canada/Mexico/ Bermuda/PR/USVI/parts of the Caribbean, Central & South America, East & West Europe.
- Term: 18 months to 10 years
- Leverage: 55% to 75%
- Rate: 1.75% to 9%
- Points: 0% to 2%
- PPP: TBD subject to deal type and terms
- Closing: 15 to 45 business days
- Fees: $7,000 to $55,000, plus appraisal
- Require: Full Documents