Small Line of Credit / Loan Cosign Needed
Posted 15 November 2004 - 09:23 PM
My partner and I are in the process of obtaining funding ($500,000) for our current business project. We have found a private investment company (a registered faithful BBB member with references and D&B #s) willing to invest in our venture, but require the entrepreneur or borrower to pay for what they call the "due-diligence phases," which is the process in which they make sure everything is honest and legal with the investment, as well as writing the contracts.
The total retainer fees (due-diligence fees) are capped at approximately $25,000. My partner and I lack this amount of liquid cash to obtain a bank loan, and are currently looking for someone with enough available assets to secure a line of credit or a loan for the amount of $25,000 USD for us.
As soon as the major debt loan ($500,000) is secured from the private investment company, which will be within one to two months after the retainer fees are paid, we will reward a 15% return ($3,750) on the $25,000 to the loan co-signer.
Please contact me at firstname.lastname@example.org if interested or for further information (if I do not respond within 24 hours, please resend as my spam eraser may catch it). If you know of anyone interested in a deal such as this, please refer him or her to me. Any help on other ways I may go about obtaining this loan will also be appreciated.
Thank you for your time. Have a great day.
Posted 16 November 2004 - 12:21 AM
I would be very wary of any company that wants 5% of the amount that they are going to lend upfront.
Posted 16 November 2004 - 07:31 AM
But they don't want 5% of what they are lending. It would be the same costs even if you were asking for $45,000,000. They are fees that they claim pay for lawyers and market research to make sure the project is feasable, that I am legal, and that everything in my business plan wasn't just BS.
Posted 16 November 2004 - 08:46 AM
$500,000 x 5% = $25,000
Am I missing something?
Honestly, I do not know if this company is honest or not. It could very well be that they are very honest and that loans do materialize. Personally, I have an aversion for paying such a substantial percentage of money prior to any commitment. I also have to question the feasibility of a loan for $500,000 when there isn’t enough equity for $25,000.
Based on the limited information, I don’t think the loan will happen or it will be offered with conditions so onerous that it will essentially be a denial.
Posted 16 November 2004 - 02:28 PM
What I think your missing, is the bland fact that those fees are to cover market feasability tests, lawyers fees, etc. It is not part of the loan itself. The loan itself is a 100% equity/debt loan, in which my company will pay the equity portion quartly as preffered, and the debt portion on a U.S. Treasury point basis. However, I will admit, the equity terms are rather steep, but am given the choice for a buyout provision.
Besides the fact that I have bank references, past project references, a satisfactory Better Business Bureau report on them with no complaints, been in business since early 80's, three D&B numbers with which I can obtain reports on either one at any time, how else should I find out if they are legal or not?
Thanks again for your help.
Posted 16 November 2004 - 08:59 PM
”… , past project references….” If the list you provided, that is the most important item. Investigate those projects.
Your project must be something very special in order to obtain 100% financing. Mind sharing what it is?
Posted 16 November 2004 - 10:49 PM
Posted 16 November 2004 - 10:59 PM
Posted 17 November 2004 - 07:33 AM
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