Streamline the deal cycle in loan agreements

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so remember the overall process there's the five of us right you us the syndication the lender the investors so what happens is in order to get started step number one is pay the setup fee and that's going to be between 5000 to twenty five thousand dollars and that's up front the other upfront fee is one or let's just say one and a half for the letter of guarantee okay we have to make sure that you have the money for the letter of guarantee because we like to move quickly we want to make sure that you're qualified remember that letter of guarantee is the collateral for your loan the lender will not make a loan without the collateral the letter of guarantee is how they are secured their capital the setup fee comes to us one and a half percent for the letter guarantee goes to the investors we are going to take the application send it to the committee they look at it and they're gonna send a term sheet once you get the term sheet if you're good with the terms then we ask for the one and a half percent to go into a share account with our credit union we hold that there in a separate account and we give it a thumbs up now when we give the thumbs up this indication is going to write up the contracts and send us back all the paperwork all the contracts everything that we need in order to get everything going you review all that paperwork you sign it if you have a corporate seal you seal it you notarize it those are the requirements everything needs to be notarized and legalized and once we have all that paperwork back then we send it back to the syndication and then that mo in that same day we sent the 1.5 percent to the investors once the investors have that money they start writing the letter of guarantee doing all the legalities and everything that they need to do to issue that that gets that's step number two the issuing of the letter of guarantee once that gets issued that is the point where your 1.5 is no longer refundable services have been rendered for the letter of guarantee and if you try to pull back for whatever reason after this point and you lose that one and a quarter percent you lose the setup fees of those that letter guarantee half a point comes back to us as an initiation fee for working with the investors now step two the letter guarantee gets sent now everything starts working in the lenders offices with their legal team and their underwriting teams when they start looking at all the paperwork if they feel that there's a lot of risk they might come back and ask for for what they call a certificate of insurance and that certificate of insurance is typically 10 percent of the loan amount but we negotiate it down to five percent so step three is the legal department underwrites everything they look at everything if they do ask for this five percent then we have to be ready to to send them that money for that insurance coverage we always ask for the five percent and the one and a half percent up front the five percent might not be needed the one and a half percent goes into our credit union's share account you can put that five percent in there too or you can put it anywhere you want we just want that five percent separate separate ready to work ready to get sent in the event that we do need to pay it there could be the event where you they don't require it from you and you get to keep that money and then it's yours and we never needed it but in the case that we do need it we need to make sure that you're qualified and capable of being able to send that money so that's why we ask that you keep it set aside in the event that it is asked of you step number four the lender and the investors or the lending bank and the investors get together and they start coordinating the bonds and the investments and these are all aaa bonds american bonds and euro bonds and municipal and corporate bonds in the new york stock exchange and so that gets coordinated after the two or three days with the investors it takes about another 10 days to coordinate the bonds and the investments and once that's put in place then they go ahead and we move forward to step number five which is where commissions are paid and funds are sent to the client the lending bank pays the syndication their commission they pay us our commission and then the client gets their funds and so all this process takes a minimum 15 banking days on our end i can usually tell the clients it can take up to 60 days based on the client speed and getting us the paperwork that we need getting the money set aside that they need to get set aside and getting everything going so we're 15 days three weeks we can get everything processed and funded fairly quickly the rest of the process depends on the client and and how fast we're able to move things with them so anyway that's uh that's the overview of the plan and the program and how we work and what exit plan pro is able to do for you as one of our clients and we're excited again to be working with you and if you have any questions just get back together with the representative that introduced you to this video again this is ramon navarro thank you for your time and i wish you lots of success