Asset Backed Bank (LOC) Funding Program Overview

The Asset Backed Bank (LOC) Funding Program is a Systematized Process designed to bring a Project Owner and Our Investor together to realize the completion of a project. This program was introduced in May 2020 and allows a client to borrow from and work directly with their own bank. Too often project owners are faced with the old situation of “Which Comes First, The Chicken or The Egg”. Our Investor is looking for projects that are profitable and at low risk. They are looking to facilitate a Project owner’s ability to receive a Credit Line/Loan from their Bank, for projects that are well thought out and can make their loan payment. Well, the Asset Backed Bank (LOC) Funding Program allows both participating parties to develop that working relationship.

To participate in this program, the client will need to have:

  • a project ready to execute that requires a minimum of $5M in funding, and 
  • a banking relationship with a lender that can execute a credit line/loan backed by assets.

With such a relationship in place, our Investor will work with the client and their bank to set up a dedicated credit line/loan that will be underwritten IN FULL by our Investor’s assets. This credit line would be set up in an amount greater than that required to fund the client project, to ensure enough funds will always be available, and to afford funds to our Investor to put to work in other programs to fully mitigate their risk in the venture.  The amount of pledged assets they require to set up the credit line/loan, will be provided to the Client’s lender by our investor, either through a bank instrument to be issued from the lending group’s own corresponding bank in the banking jurisdiction where our Investor’s gold is vaulted, an asset pledge of gold bullion from our Investor’s gold holdings, or an SKR (safekeeping receipt) issued by Brinks, that is fully backed by our Investor’s gold holdings with them. Our Investor can pledge the assets to them in whichever of these three methods the bank prefers.

When our Investor and your bank come to an agreement to move forward, their banking team works with your bank to set up the credit line. They will paper the deal so that it is clear that your project is responsible for servicing only the portion of the credit line the project has used, and our Investor is responsible for servicing any remaining balance. But it is always our Investor’s assets that entirely back the credit line/loan principal 100%. Once the bank has issued a “soft” confirmation that they can provide the credit line (assuming of course that the asset meets their requirements and all of their Due Diligence requirements), Our Investor will require that the client go through their standard application and risk assessment protocols; as our Investor’s banking teams work with your bank to set up the Line of Credit/Loan, their team will be working with you to process your application and set up all loan agreements.

Here are the following Initial Requirements:

  • Applicant must have a written verifiable relationship with their Bank
  • Applicant must have an attorney and submit a letter stating so.
  • Project Outline
  • Budget Top Sheet
  • Project/Production Schedule
  • Funds Draw-down Schedule

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