Alternative & Innovative funding for Companies & Individuals
What is Kadland Capital Alternative funding ?
Kadland Capital has team up with non-traditional, non-bank Private Lenders and they specialize in arranging alternative financing for more challenging commercial transactions throughout the World. They arrange financing for companies that are unable to secure financing through traditional sources, and for Government entities that are engaged into “Private/Public Partnership Policy” to develop country infrastructures, Education system, Health & Energy facilities.
Most people do not know about Bank instruments like MTN's, Bank Guarantees (BG's), Corporate Bonds, SBLC's or other Bank instruments. All they know is that in the arena of project financing it is getting harder to get a deal funded! For those reasons... It makes sense to look at alternative forms of funding. Using techniques such as securitizations, monetization, leverage, private bond issues, private debt and equity and other forms of structured finance and lending, we are able to provide much needed capital as well as specific project finance based on our Alternative Funding Mechanism.
What are the financial advantages of Kadland Capital Alternative Funding Mechanism ?
• Funding with No Upfront Fees of any kind. All costs paid at closing.
• Loan with exceptional Fixed Interest Rate from 1% to 3% maximum
• Flexible Loan Term – From 3 Years to 30 Years Period.
• Flexible Grace Period – From 12 Months to 36 Months
• Possibility of Non-Recourse Loan
• 90 Days Maximum of Funding Process (Loan Disbursed within 90 Days)
How to benefit from “Alternative Funding Mechanism” ?
In order to benefit from the financial advantages of our “Kadland Capital Alternative Funding Mechanism” the borrower must be able to contribute to the funding process with a “Partial Collateral Enhancement” bank instrument in the form of a SBLC or BG with a face value amount equivalent to 25%, 20% or 15% of the project/loan amount. (The level of the borrower’s contribution will depend on the total project value).
Very important: As a trigger, the banking instrument shall be returned to the borrowing entity unencumbered and totally free of any liens at maturity.
Bond - A long-term promissory note in which the issuer agrees to pay the owner the amount of the face value on a future date and to pay interest at a specified rate at regular intervals. This is basically a debt by a company which issues a document and promises to pay.
Certificate of Deposit - (CD) is a cash deposit into a financial institution that is usually for a term anywhere from one month to 5 years. The depositor receives a certificate that states the financial institution will irrevocably and unconditionally pay the principal and interest upon a certain date and time in the future. This is basically like cash, depending of course on the issuers' credit rating, which could make borrowing or cashing it difficult.
Credit Enhancement - this is a term used to help individuals, corporations or governments to borrow funds for specific projects including working capital. The form can take place with many different vehicles such as balance sheet enhancement using borrowed assets for specific periods of time, such as bonds, certificates of deposit, debentures, free trading stock from publicly traded entities, bank guarantees, standby letters of credit, medium term notes and GIC's.
Debenture - An unsecured bond backed solely by the general credit of a company.
Derivative - A generic term often applied to a wide variety of financial instruments that derive their cash flows, and therefore their value, by reference to an underlying asset, reference rate, or index.
Documentary letters of credit - (DLC) these instruments are basically an absolute guarantee of payment for goods and/or services that the seller requests proof of payment, but the buyer needs assurance of delivery. The term can be from 30 days up to one year.
Due diligence – (DD) A thorough investigation of a company, undertaken by another company's underwriter and accounting firm.
Financial Indemnity Bonds - are purchased usually from top rated A+ insurers by AM Best to guarantee lower graded financial instruments (wrap) or funding projects to insure payment over a specified period of time. This takes major underwriting efforts and is expensive, usually costing up to 3% of the entire insured amount, and this is paid in front, before the policy is issued.
Guaranteed Investment Contract - (GIC) this is like an annuity or life product that has a specific term usually 10 years and is backed by an A+ rated or better insurance company that guarantees the entire principal. The borrower only has to make the interest payments. This product is not accessible by bankruptcy, creditors and is judgment proof. This product is very similar to the credit enhancement and is readily acceptable by most banking institutions as collateral and is easily borrowed against.
Medium term notes - (MTN) these are instruments that are underwritten by financial institutions generally listed in the bankers almanac, although can be issued by corporations that are underlying the guarantee with their own assets. The term is usually more than 2 years and can extend up to 30 years, but most common is ten years, with attached coupons of interest.
Standby letters of credit - (SBLC) are like bank guarantees which are usually issued for a term of one year that can be renewable from top US or Canadian financial institutions. They are an absolute guarantee of payment on the instrument immediately when presented to the issuer for payment.
Surety Performance bonds - are a form of a guarantee with stipulations as to an event or for events to take place, and then when the event does not happen, they step in to insure there will be funds to complete the project. These are instruments that are issued from top rated A+ insurers by AM Best.
Understanding the Financial Terms