COMMERCIAL LOANS MATCH MAKER SERVICE

COMMERCIAL LOANS FOR SMALL TO MIDSIZE BUSINESS

Asset Capital Finance in association with OVER 150 DIFFERENT LENDING FIRMS can arrange to introduce you directly to a lender that has the ability to finance your project $100,000 to $100,000,000 in the event that one or our direct associates can not provide you with your loan requirements. This is is the application to use if nothing else specifically fits your situation.

Procedures:

Complete the application indicated below as completely as you can.

The application must be signed or we will not process it. SO PLEASE PRINT IT AND FAX IT TO 1-780-465-2288

If you are an agent or you are working with and agent this is fine as we will be paid by the lenders on succesful funding only. We have to have the client sign the original application but all introductions to lenders can be facilitated by the agent if proper agreemnts are in place.

Application

EMAIL US IF YOU HAVE A PROBLEM !!!!

INTERNATIONAL PROJECT FUNDING

INTERNATIONAL LOANS WITH BANK GUARANTEE (AS A STANDBY LETTER OF CREDIT)

Asset Capital Finance in association with investment bankers specializes in structuring, syndicating, and arranging international loans in U.S. Dollars on favorable terms. Minimum loan amount per single request is $1,000,000 US (ONE MILLION USD), and maximum is $400,000,000 US (FOUR HUNDRED MILLION USD). Term of loan ranges from 3 to 12 years subject to negotiation. The interest rate is based on LIBOR (London Interbank Offered Rate) plus a "margin" for the country risk.

LIBOR is the base rate within the banking communities to lend money to borrowers. A margin is added on top of LIBOR.

LIBOR rate fluctuates from time to time based on market movement.

Margin rate depends on the country risks which means political and economical stability of a borrower/country. The more stable is a country, the less is the risk, so, the lower is the margin added to LIBOR.

LIBOR and margin put together become the interest rate charged to a borrower.

Term of loan depends on the country risks. The greater is the stability, the longer is the term granted.

All loans must be guaranteed by a reputable bank or insurance company.

In order for a lending bank to approve a loan, the lending bank must first know who is going to be the guarantor bank. Guarantor bank must be to the satisfaction of the lending bank before it will consider a loan. . In order to let the lending bank know who is going to be the guarantor bank, a borrower must get his bank to issue him a Letter of Intent to Guarantee (as a Standby Letter of Credit). Intent is not a formal guarantee at this moment. It is a Pre-Advice to issue a guarantee covering the loan amount,and its annual interest. The formal guarantee would be issued when the lending bank first sends a communication to the guarantor bank confirming release of funds against receipt of a formal guarantee (as Standby Letter of Credit).

Once borrower's bank has issued to him a Letter of Intent, the lending bank would start processing the loan request, put funds together, and confirm to the guarantor bank that it is ready to release the funds against receipt of the formal guarantee.

There are other documents to be completed by the borrower which we shall advise, but if bank's Letter of Intent is not obtainable by the borrower, there is no need to process other documents. If, on the other hand, borrower 's bank issues its Letter of Intent to guarantee(As a Standby Letter of Credit),we shall then advise the borrower to prepare other professional loan documents which would lead to successful conclusion of a transaction within ten (10) clear international banking days after completion of those documents.

The intermediaries who contribute to the success of a loan transaction earn a commission, percentage of which will be agreed upon by the borrower in advance in a Fee-Agreement with original copy sent to the Closing Bank authorizing it to disburse the agreed amount to each individual concerned at the same moment loan is closed

INTERNATIONAL PROJECT FUNDING

INTERNATIONAL LOANS ELIMINATING BANK GUARANTEE

For many years past, we have seen numerous project sponsors/borrowers having good, feasible projects on hand, but failed to get them funded due to lack of access to bank guarantee (as a Standby Letter of Credit) to back up their borrowing, so projects with great future could not be realized.

To help solve this bank guarantee difficulty, Asset Capital Finance's Investment Bankers have been successful in negotiating with top-notch world-class lender groups to drop the bank guarantee requirement, and fund projects based on their merits. Lender groups accept good, viable industrial, manufacturing, infrastructure, and agri-business projects having the following proven merits.

That they are potentially economically sound and technically viable; complying with strict environmental guidelines; and that they are from private sectors in developing countries.

Funds are provided by lender groups to support start-up of new projects, and expansion or modernization of established ones. Package of longer term financing, up to 12 years, ranging from $1,000,000 US (1MILLION USD) to $400,000,000 US (FOUR HUNDRED MILLION USD) per project/request can be provided by lender group(s) within thirty (30) days after signing loan agreement.

Interest rate is LIBOR-based plus a margin.

One of the said lender groups had approved a total of $8,000,000,000 US (EIGHT BILLION USD) in a single year to support projects on a worldwide basis with a quarter of above approved funds for projects located in Asia-Pacific countries.

INTERNATIONAL PROJECT FUNDING

LENDER GROUP(S) BANKING FEES

Usually to get the project funded, there will be a charge of 1% (ONE PERCENT) banking fee by the lender group(s) providing project financing. Whenever necessary, an additional 1% (ONE PERCENT) syndication fee is required for the cost of gathering a group of international bank to put the required amount of funds together for a project. Other fees to cover legal, administrative costs, etc., may be applicable. The following is a reference example of the breakdown of fees involved:

Example:

Take loan for $100,000,000 US (ONE HUNDRED MILLION USD). 1%(ONE PERCENT) banking fee is $1,000,000 US (ONE MILLION USD). 1% (ONE PERCENT) syndication fee is $ 1,000,000 US (ONE MILLION USD) . Legal fees vary in accordance with the work involved, but the reference figure is 1/8 (ONE-EIGHT) of 1% (ONE PERCENT) or less subject to negotiation.

HOW ARE FEES PAID FOR? The following flexible approach has been negotiated with success by DuPont to relieve borrowers' financial pressure.

Example:

For borrowing $100,000,000 US (ONE HUNDRED MILLION USD) the lender group(s) would finance, say, $102,125,000 US (ONE HUNDRED TWO MILLION, ONE HUNDRED TWENTY-FIVE THOUSAND USD). Upon closing, the lender group(s) deduct $2,125,000 US (TWO MILLION, ONE HUNDRED TWENTY-FIVE THOUSAND USD) to cover its 1% (ONE PERCENT) banking fee, 1% (ONE PERCENT) syndication fee, and $125,000 US (ONE HUNDRED TWENTY-FIVE THOUSAND USD) legal costs, provide the borrower $100,000,000 US (ONE HUNDRED MILLION USD).

The drop of bank guarantee (as a Standby Letter of Credit) requirement creates certain risks for lender groups in the safety of their money. For this reason, projects submitted for loan consideration are carefully analyzed as to their feasibility. Therefore, borrower's documents must be prepared in an absolutely professional manner to the satisfaction of the lender groups.

LENDER GROUPS' ADMINISTRATIVE FEE

Lender Group(s) charge an annual Loan Administrative Fee. Project sponsor/borrowers have complete responsibility to use the funds strictly for business purposes with regular briefings submitted to the lender group(s) on the progress of project functioning.  

INTERNATIONAL PROJECT FUNDING

ASSET CAPITAL FINANCE FEE STRUCTURE FOR INTERNATIONAL LOANS

ASSET CAPITAL FINANCE requires the following fees based on its involvement in the loan-arrangement process:

REVIEW AND ENGAGEMENT FEE: This is to pay for reviewing a project feasibility study, and provide our legal engagement to recommend how to properly present the project to the lending group(s).This fee is paid at the time of signing exclusive representation and non Circumvent and Non-Disclosure Agreement.

LOAN-ARRANGEMENT PROCESSING FEE: Upon favorable indication by a lending group on a project's feasibility, a Loan - Arrangement will be completed.

SUCCESS FEE: The Success fee is paid at the time of loan closing .

Both the Review and the Engagement Fees and the Loan-Arrangement Processing Fee are fully deducted from the Success Fee.

NOTE: ALL FEES ARE IN U.S. DOLLARS.

REVIEW AND ENGAGEMENT FEE LOAN AMOUNT FEE IN US$

INTERNATIONAL PROJECT FUNDING

INTERNATIONAL PROJECT FUNDING

EXHIBIT A

PREPARING YOUR LOAN PROPOSAL

1.0 BRIEF DESCRIPTION OF PROJECT

2.0 SPONSORSHIP, MANAGEMENT, AND TECHNICAL ASSISTANCE:

2.1 History and business background of sponsors (borrowers), including financial information.

2.2 Proposed management arrangements and names and curricula vitae of managers.

2.3 Description of technical arrangements and other external assistance (management, production, marketing, finance, etc.).

3.0 MARKETING AND SALES

3.1 Basic market orientation - local, national, regional, or export.

3.2 Projected production volumes, unit prices, sales objectives, and market share of proposed venture.

3.3 Potential users of products and distribution channels to be used.

3.4 Present sources of supply for products.

3.5 Future competition and possibility that market may be satisfied by substitute products.

3.6 Tariff protection or import restriction affecting products,

3.7 Critical factors that determine market potential.

4.0 TECHNICAL FEASIBILITY, MANPOWER, RAW MATERIAL RESOURCES, AND ENVIRONMENT:

4.1 Brief description of manufacturing process. Possible suppliers of equipment.

4.2 Comment on special technical complexities and need for know-how and special skills.

4.3 Availability of manpower and of infrastructure facilities (transport and communications, power, water,etc.).

4.4 Breakdown of projected operating costs by major categories of expenditures.

4.5 Sources, cost, and quality of raw material supply and relations with support industries.Import restrictions on required raw materials.

4.6 Proposed plant location in relation to suppliers,markets, infrastructure, and manpower. Proposed plant size in comparison with other known plants.

4.7 Potential environmental issues are addressed.

5.0 INVESTMENT REQUIREMENTS, PROJECT FINANCING, AND RETURNS:

5.1 Estimate of total project cost, broken down into land, construction, installed equipment, and working capital, indicating foreign exchange component.

5.2 Proposed financial structure of venture, indicating expected sources, and terms of equity and debt financing. Type of financing in need - straight loan, equity,or both, and amount. Projected financial statements, profitability analysis.

5.3 Critical factors determining profitability analysis.

6.0 GOVERNMENT SUPPORT AND REGULATIONS.