The Benefits of Transactional Funding

We are thrilled to offer an opportunity for private financiers, credit unions, and banks to provide Transactional Funding as a high yield, very low risk investment vehicle. Please watch the explanatory video below (about 14 minutes) and contact us for more details. Please select full screen mode for best viewing.

The Benefits of Transactional Funding

You can download a PDF copy of this presentation by clicking here.

In the video, I mention a transactional funding fee of 1% for a safe 1-day loan.

However, we can structure multiple tranches for the transactional funding loan with varying yields. For example, we can structure 2 tranches at 90% senior position and a 10% junior position. The senior tranche receives a 1% transactional funding fee, while the junior tranche receives up to a 10% transactional funding fee.

Each tranche can have multiple participants on a pari passu (equal stance with other participants in the same tranche) basis. The junior tranche could also be a compensating balance deposit account with the senior tranche bank or credit union, for up to 10% of the 1-day loan amount.

Also, the escrow #1 includes a hypothecation agreement to convey the distressed assets to the transactional funding lender in the very unlikely event that escrow #2 fails, and a repurchase agreement that allows us to buy back those distressed assets from the transactional funding lender. All of the investment tranches for escrow #1 are covered by the hypothecation agreement and the repurchase agreement.

If you are interested in learning more about participating in safe 1-day transactional funding loans, then contact me on my support page by clicking here.

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