All about 144A Bond Funding
144A Bond Funding can emerge as the lifeblood of those developers who are considering easily accessible source of cash for their real estate and non-real estate projects. People who opt for this way of financing their projects are able to take advantage of the low cost, fast, and non-recourse nature of this type of funding. Real estate developers can consider opting for the 144A Bond Funding, because of the large number of unique benefits it provides to them over other more conventional means of raising cash. The projects that can be ideal for this type of funding include stabilized real estate projects that have solid credentials with viable exit strategies, as well as, adequate amount of prior experience in the field and proven principals. In addition, this type of funding can be suitable business financing option for a variety of other projects including construction, agriculture, mines, oil and gas, as well as, various non-real estate sectors including pharmaceuticals, technology concerns, and much more.- 144A Bond Financing
144A Bond Funding offers a number of unique and significant advantages over the standard funding options to people, which can make a world of difference to the profitability of any project funded by it, and as a source of business capital. This type of funding does not require any personal guarantee on the part of the loan taker while it offers 100% LTV. Moreover, it does not require any asset verifications and credit checks as well prior to the granting of the funds. Therefore, this can be an excellent choice for real estate developers who are in need of some quick cash to help them fund their projects, which can be quite a long drawn process with tradition funding institutions. The turnaround time for this type of funding is extremely short when compared to other such funding options, with most of the time the period being around 90 days only.
Opting for 144A Bond Financing also does not lead to any loss of equity in the business of the people opting for this type of funding, which can be quite a bit of relief for those not willing to hedge their control over their business in return for funding. Even the underwriting fee that the loan taker needs to pay for receiving the fund is extremely low when compared to other sources of credit for such projects. This fund is available to all regardless of their area of operation around the world. The minimum amount granted as part of this fund is $10 million while the maximum can be $500 million with no cap on the upper limit.
144A Bond Funding provides extremely flexible payment terms, which makes it even more convenient for the receiver of the fund to utilize them for their projects and make them profitable. It also charges an extremely low underwriting fee. Moreover, the amount charged as underwriting fee varies on a case-by-case basis for project funding. The requirements for availing this funding is the need to show double the amount of underwriting fee in a bank account by the client. In addition, clients must show 3 months of seasoned funds, and have a business plan, an executive summary, and exit strategy in place.- Business Financing