G21 CREDIT ENHANCEMENT: TERMS AND PROCEDURE

POWER POINT OF G21 CREDIT ENHANCEMENT. CLICK HERE

After receiving your Loan Guarantee Request Form (Click Here) begin the project review process, including presentation to our Credit Enhancement Committee, prepares materials for approved projects and forwards that material in banking language and highlighting the positive and profitable aspects of the Project and the Company to Investor Groups and Lender Banks.
When the Project is accepted and Approved by the Investor Group that provide Guarantees and Collaterals, as well as by the Lender Bank that funding the Funds; we issue a formal Letter of Intent and Documentation.
The Letter of Intent and Documentation will signal the willingness of both parties to proceed with the terms, conditions and procedure.
This Letter of Intent usually is valid for three Banking days; by the end of this 3 banking days period, a decision to proceed must be made, to sign an Agreement with GATEWAY 21 BANKERS, other related documentation and Payment of Cost of Letter of Guarantee.

When GATEWAY 21 BANKERS sends the Letter of Intent and Documentation it is because everything has been coordinated with the Investor Group and the Lender Bank for Closing and Funding Planning, as well as the guarantees and funds have been blocked in favor of the Loan Guarantee Approval.

G21 CREDIT ENHANCEMENT: LETTER OF GUARANTEE
“Letter of Guarantees” that the Legal Representative, Managing Director or CEO is required to pay upon signing the above referenced agreement and documentation is needed for the Investor Group to acquire from a Financial Institution an Irrevocable Letter of Commitment of Guarantees and Collateral for the Principal and Interest of the subject loan.

These guarantees can be Bonds, U.S. Treasury Bonds or Eurobonds which are underwritten by top 20 International Banks.

The Cost of the “Letter of Guarantees” provided by a Financing Institution usually runs between:
LETTER OF GUARANTEE FOR PRINCIPAL AND FOR INTEREST:
• US $1 MILLION TO US $10 MILLIONS = 1%
• US $ 10 MILLIONS TO US $100 MILLIONS = 0.5%
• COMMISSION = 4%
Depending on certain variables other collateral will be requested by Lender Banks: i.e., type of project, amount, country, principals of the project and other criteria.

G21 CREDIT ENHANCEMENT: EXAMPLE
A Company needs US $ 1 Million for an Investment Project.
GATEWAY 21 BANKERS would arrange guarantees and collateral of Investor Group supporting financing of US $ 2.2 Million by Lender Bank.
Upon receipt of this financing, the company would receive $ 1 Million for its Project and the other US $ 1.2 Million would be deposited into a Sinking Fund in the Lender Bank.
At maturity, the Sinking Fund would be sufficient to repay the entire US $ 2.2 Million principal to the Lender Bank.
During the loan term, the company would only pay interest on the principal (US $ 2.2 Million), since the Sinking Fund automatically cancels the Principal.
The applicable interest rate is determined by negotiations between the company and the Lender Bank. This rate should be comparable to the LIBOR (London Interbank Offered Rate) and other current market rates. (4%).

G21 CREDIT ENHANCEMENT: BUSINESS PLAN
A business plan is a requirement for Lender banks to consider Loan Guarantee requests.

The business plan should include an overview of the business, at least three years’ worth of projected financial statements, a repayment plan for the borrowed funds, the resumes for all owners and a breakdown of competitors and how your business will set itself apart from them.

The experience and contacts in the financial world of expert consultants of G21 CREDIT ENHANCEMENT, allows us to maintain able to obtain the necessary financing of the investment projects of our clients.

G21 LOAN GUARANTEE REQUEST FORM

  1. Completed, signed and dated Loan Guarantee Request Form, (Click Here).
  2. Company Financial Statement (within the last three (3) months).
  3. CPA Prepared Business Financial Statements for the last three (3) years (If requested by lender Bank).
  4. (If Applicable) Projected monthly Profit and Loss Statement for remainder of current year and annually for the following three (3) years (include assumptions).