The Multiples Loan Program is a Systematized Process designed to bring together; Project Owners, Lenders, and Investors under one roof. Too often project owners are faced with the old situation of “Which Comes First, The Chicken Or The Egg”. Investors are always looking for projects that are profitable and at low risk. Lenders are looking to lend money to projects that are well thought out and can make their payments. For clients with a specific project to finance or have a series of projects that can be approved through a funding pool, our Lender’s “Multiples Loan Program” is ideal. There is no “static” multiple; the Loan Multiple will ultimately be determined at the underwriting stage based on the quality and risk assessment of the Project and that multiple offered could be anywhere from 1X that initial amount to 4X (though 4X is the most frequent). The Borrower can request a specific multiple for their loan, but the Term Sheet will definitively state the multiple being offered to the Borrower.
As the project owner/borrower, you are required to bring a minimum amount of funds to the project (20/25% of the total costs), and they can lend you multiples of that initial amount (the remaining 80% or 100%) to fulfill the budget. Our Lender has offered this product to select clients and industries since 2005 and until the end of 2021, the minimum amount of funds that needed to be raised to qualify for this program was only $1M USD. Due to changes in the requirements of our Lender’s banking and insurance partners, as well as changes in the marketplace, effective immediately the minimum amount of funds required to qualify will be the equivalent of $10M USD or $10M Euro. This change makes it very difficult for TMI and its Lender to work with projects with budgets of less than $20M USD unless they are part of a slate.
Our Lender does have some alternative solutions available for smaller projects. For those Borrowers who have Under $10M USD in hand, our lender offers a Loan Program that does not involve static “multiples,” but instead, offers a straight 1-1 “Recourse” Loan.
Lastly, in the event that our lender is presented with a real “gem” of a project, they may propose an “Equity” position in exchange for THEM becoming an 80% investor in your Project. Depending on the arrangement, they could offer as much as a ZERO interest, ZERO Principal Repayment deal. BY INVITATION ONLY
Here are The Funding Eligibility, Requirements, and Procedures
- Global projects can be submitted.
- Your project must have the production elements established. A fully developed business plan must already be in place. If it’s a film and you only have a script but no budget or production plan, you are not yet ready to be funded. Your project doesn’t necessarily have to be ready to produce immediately, but it should be basically ready to go.
- Minimum funds already raised for the “Multiples” Loan. There must already be at least the equivalent of $10M USD/Euro ready to deploy into the project, or slate of projects. As a requirement to qualify for our lenders funding multiples, those “initial funds” must sit idly on the sidelines throughout the loan term, either in your own bank account or under the protection of a regulated bank, in an account in your name. Clients “Initial Deposit” capital are always kept in “safe-keeping”, where these funds are never exposed to any risk.
- Minimum Initial Deposit of $10M USD/Euro (other forms of currency also accepted…Pounds Sterling, Rupees, Dirham, Bitcoin (and other top Cryptos). This will result in a maximum Credit Facility of $40M USD if applying for a 4x Loan.
- Interest Rate is a rate of 3.5% per annum, OR “LIBOR +2”, (based on the existing US 12-Month LIBOR rate) – WHICHEVER IS HIGHER. The current LIBOR rate can be accessed by this link here: https://www.global-rates.com/interest-rates/libor/libor.aspx
- All our Lenders loans must be approved through banking compliance, a process that takes approximately 60 days. If you require funds immediately, and cannot wait for compliance confirmation, your project will not qualify.
- Your funds are released in traunches as they are consumed into the production, per a monthly draw down schedule (provided by Our Lender’s insurer) as part of the Loan Contract. It will take 9 to 12 months for them to be fully deployed. If you require all funds on day 1, this program is not suitable for you, and we will not be able to assist you.
- Budget Top Sheet
- Project Outline, Use Of Funds & Preferred Drawdown Schedules
- Project/Production Business Plan
- Proof of Funds, showing appropriate “initial funds” ready to be applied into your project, and must have updated proof of 20/25% project funding.
- Projects are completed as per the schedule, and the client may execute any of the 4 Repayment options as outlined, at their sole discretion.
Acceptable Forms of Proof of Funds
- Bank Statement showing the required level of funds. This statement must show the name of the account holder and the banking institution.
- Investment portfolio showing the required level of funds in cash or highly liquid investments.
- If the bank statement or portfolio is held by any person other than the signatory for the borrower, a letter from that person will be required stating they will be providing the initial funds to the project for the purposes of procuring the loan.
- Letter from registered investment house or wealth management company, on the company letterhead and signed by an authorized representative, stating that project owner or investor has cash or liquid, marketable securities with a market value in excess of the initial funds amount.
- If the letter represents funds held by anyone other than the person who is the signatory for the loan, a letter from that person will be required stating they will be providing the initial funds to the project for the purposes of procuring the loan.
- A formal term sheet from an institutional or private lender stating that the client company has been approved for a loan in the amount of the required initial funds amount.
- Statement of credit lines for the borrower showing sufficient available credit on those lines to be able to provide the required initial funds amount.