COMMERCIAL PROJECT FUNDING
Covenant Financial Solutions Asset Based Private Lenders Offers:
100% Private Asset Based International Lending Network for Residential and Commercial lending. Fixed Rates as Low as 2%, Up To 30 Year Amortization, Seamless Closing Process For Quick Closings, In House Underwriting & Streamlined Loan Process, Able to Finance Self-Employed, Assumable Loans, No limits on Commercial Purchases.
Our Private Asset Based Lenders do not base approvals on either Personal Credit (FICO), Debt to Income (DTI) or personal guarantee! Borrowers can close as an Individual, Trust, Corporation or LLC. Borrowers must provide a Down Payment.
Covenant Financial Solutions offers borrowers the best of both worlds; increased buying power and flexibility coupled with substantial savings over the life of your loan. Our consultants are able to meet and exceed every client’s expectations when it comes to matching borrowers mortgage needs with the proper solutions oriented loan product. With Covenant Financial Solutions you will receive more and spend less on all of your Residential and Commercial real estate mortgage needs.
We never charge any upfront fees to anyone ever! Pre Approval for Borrower is responded to within 48 -72 hours!
Covenant Financial Solutions promises 100% transparency, full disclosure providing borrowers with all the terms and conditions of each transaction prior to scheduling a closing at title company of borrowers choice with borrower’s legal representative.
ALTERNATIVE PROJECT FUNDING
Project financing with alternative capital takes different forms depending upon the project's industry, the maturity of the project and the client's preferences. This type of financing is for high quality projects with substantial assets that are short of capital and it can be arranged at a favorable price without the client being required to give up any ownership of their company.
What is Alternative Capital?
Alternative capital is capital obtained from funders other than banks and other traditional sources of financing. The alternative capital market was largely brought about by the cataclysmic events that hit the world financial markets beginning in 2008. Large depositors (institutional investors and large private wealth with idle cash) fled from banks and other traditional institutions. This money was replaced by central bank intervention quantitative easing) and the result is banks are now no longer good sources of financing for the average borrower. The banks have become financial casinos" more interested in their own proprietary trading, funding out-of-control government spending through the purchase of "safe" government securities, etc. than performing their traditional role of making loans to companies and individuals who have deserving projects.
The amount of alternative capital in the world is huge but it is very private and in many cases is virtually anonymous. However, its owners are looking for opportunities to employ their capital in ways that avoid the ever increasing risks of the ongoing sovereign and equity market concerns which keep bringing further destabilization in the world's capital markets. The world's funding landscape has changed forever and now the alternative capital era is a constantly evolving process of identifying where the owners of alternative capital are located and assisting the owners of that money in placing it into worthy projects.
Advantages of Alternative Capital
- Lock in a fixed interest rate for up to 10 years
- Non-recourse financing
- High amounts of financing based on verified asset evaluations
- No prepayment penalties
- Attractive interest rates
Uses for Alternative Capital
All projects must have equity invested in them and a sufficient amount of fixed assets that can be verified with reputable third party evaluation. In some cases, a large amount of excess assets will reduce the equity requirements. A high quality Power Purchase Agreement (PPA) or Off-Take agreement may also reduce the equity requirements.
- Buying out partners
- Expanding borrowing base
A thorough due diligence process is required to determine which financing option best fits a particular project. Applicants need to have good quality information available such as a business plan, financial modeling, engineering information, etc.Time to Close
The time it takes to close most fundings ranges from 60 days up to six months for extremely complicated structures.
Legal, engineering, regulatory, accounting costs, etc. are part of the burden a client must be able to carry prior to a successful financing being completed. Many of these costs are required by protocol and/or regulations and can not be left unpaid until after a financing is completed. Example: a rating agency must be paid prior to the rating being issued to assure their opinion is fair and above board. Otherwise, the rating would be suspect if the agency were depending upon a successful funding in order to be paid their fee.
Minimum Project Size
The absolute minimum size project we accept for alternative capital financing is $50 Million. Please Contact Us and we will be glad to answer your questions.
Reminders for Submitting a Project
One of the greatest challenges for any client, even seasoned professionals, is presenting their project to a potential lender or investor in a way
that is honest and has the best chance of being successful.
Be truthful about your project. If there is something you feel may be a problem then get it out on the table. There are many creative ways to overcome obstacles but no one wants to deal with someone who is hiding something that could affect the project's success.
Make sure your information is accurate. Financial models, etc. must be high quality and subject to vigorous due diligence. Financials that are incomplete, inconsistent or simply make no sense will be automatically rejected and the project fatally wounded.
Do not try to dictate the kind of funding structure or equity/debt ratios. Those kinds of issues will sort themselves out in due time.
You need to have some financial resources in order to complete a funding. There will be costs incurred in any legitimate funding such as attorney's fees, engineering costs, travel, registration costs, etc. They are a very minor amount compared to the overall size of any financing (around 1/4 to 1/2 of 1%) but they must be paid by the client and in many cases paid before a funding is completed in order to comply with protocol and laws/regulations. These types of costs may be 100% reimbursed out of the funding.
Be able to prove you have "skin in the game". Skin in the game means hard cold cash or assets; it doesn't mean sweat equity, contacts, research, etc. Cash and hard assets are the two things every investor/lender looks for first. A shortage of cash may be overcome with a large amount of excess assets or a high quality Power Purchase Agreement or Off-Take Agreement but you can't have the other guy taking all the risk.
Be sure your project is shovel ready.
Be prepared to respond to requests for information on a timely basis. That also goes for your attorneys, employees, professional advisors,
accountants, etc. They work for you; make sure they are not only doing a good job but are responsive to everyone's needs.
** Program is subject to change without notice. **