Shoaib,
Indeed, you may be right; I hope so for you. Just use this page to
make your application:
http://www.global-funding.com/internationalfinanceloanssubmission.htm
Although Global Funding's site seems to be directed to
"intermediaries" (brokers, agents), apparently they accept submissions
directly from borrowers.
Since your question is about:
"specialized "international loan brokerage organization" providing
international loan arrangements to those applicants which are
unable to meet the requirements of traditional lending for real
estate loans,"
I am not sure if they will consider a loan, however, also since they
point out that they they are not interested in venture capital/seed
money financing, which it seems is what you are asking about. (see
last FAQ Q&A copied from the link you gave.)
Here is a definition of "seed money":
"Seed Money
The first round of capital for a start-up business. Seed money usually
takes the structure of a loan or an investment in preferred stock or
convertible bonds, although sometimes it is common stock. Seed money
provides startup companies with the capital required for their initial
development and growth. Angel investors and early-stage venture
capital funds often provide seed money."
The other Q&As and the numbered explanations to brokers (also copied
from the site) make it clear that Global Funding assunes that brokers
will be charging a arrangement fee, either deducted from the loan
amount or paid directly by the borrower, but it comes to the same
thing, the borrower is paying this at the initiation of the loan.
Yes, this may not be an "up front fee" as you use the term, something
paid just to have the broker/agent handle the application, regardless
of his success in arranging the loan.
I think we were misunderstanding each other on this matter.
As you can see below, you would also have to pay for "due diligence".
This may be one way Global Funding earns money. Due Diligence is an
in depth review of a borrower's (or takeover candidate's) accounting,
assets, business practice. This is done by independent accountants,
which costs a considerable amount, of course. Since the loan decision
is based on this, this expense occurs even if the loan is then
refused. Since the Q&A says that this must be discussed with the
potential borrower, it looks like he would have to pay.
In light of these points, I still feel that there would be expenses at
the start of the loan, and as I understood from this and your other
questions, this was what you wanted to avoid.
However, if you feel that Global Funding provides the service you have
been seeking, that is much more important than whether I am right or
wrong.
Okay? Good luck, Myoarin (see below for copies from the site)
Frequently Asked Questions...
Q. Are you a lender or a broker?
A. We are appointed loan originators and sometimes act as
co-financiers. We do not 'outsource' cases.
Q. What are your fees and or charges?
A. As an appointed loan originator and a co-financier, we do not
charge success points at closing. However, brokers please note: Should
you attempt to take advantage of a client with excess/unreasonable
charges on your side we will not process you requests.
Q. What about necessary due diligence costs?
A. Due diligence is a necessary cost not a fee. This should be
discussed, in detail, and/or sent, with every potential borrower.
Request or Refer to the document entitled 'Why Due Diligence'.
Q. What type of projects/ventures will you consider?
A. We will consider any viable project/venture. We are not interested
in 'Venture Capital/Seed Money' type projects.
Welcome Brokers/Agents...
We value and protect our relationship with all independent
intermediaries. Having been an intermediary for many years, we
recognize this valuable role.
1. Global has the direct capabilities as an appointed loan
originator and/or co-lender to directly structure, approve and/or
originate corporate structured financed investment loans from us$1
million to us$200 million. Loans in excess of us$200 million are
syndicated by our lending associates.
2. Most realistic projects can be funded.
3. We have our procedures and a specific way of doing business. We
always start the same with the completion of a project submission form
or submission or a brief executive summary. However, the project
submission form is a brief document and enables us to make
instantaneous decisions regarding our possible interest or disinterest
concerning a project and/or loan. Therefore, you may call us or send
un-requested information and our comment(s) will always be the same.
Please send us a project submission form or a brief executive summary.
4. As appointed loan originators and/or possible co-lenders we
honor all valid intermediary contracts at loan closing. You will
receive your 'arrangement fee' directly from loan proceeds at closing
or, if desired, you can choose to get paid directly from the client
upon their receipt of loan proceeds. Your choice makes no difference
to us.
5. Once we have initial paperwork completed, with you, such as your
legal protection documents and etc... And you have your client
contracts, in place, for your 'arrangement fee' we will deal with the
client directly. Neither our direct lending associates or global give
loan proposals to intermediaries for negotiation on our behalf.
6. Your clients are important to you and to us but make no mistake,
we will not argue with you regarding your clients. We have our
procedures and we do not negotiate exceptions for unrealistic clients
and/or intermediaries. We consider each client and broker request on
an individual basis.
7. What you charge a client for your 'arrangement fee' makes no
difference to us. However, if you are unrealistic and attempting to
'fleece the client' we will notify you, in advance, in writing, that
we will not honor your client contract at closing and you must collect
directly from the client. Please remember, it is up to you to secure
your success fee contract with the client. |
