Borrowing and Investing
Following last week’s newsletter, Tough Choices, Big Opportunities – to see it click here - I’ve been asked to comment on whether there is loan finance around and where to place money in other than traditional places.
Following last week’s newsletter, Tough Choices, Big Opportunities – to see it click here - I’ve been asked to comment on whether there is loan finance around and where to place money in other than traditional places.
First let me say TBK Capital is not in the business of giving financial advice. We were established to bring together people with Business and Property related projects and Private and Institutional funders. So here’s how we can help.
Borrowing Money
In recent weeks we’ve had a number of calls from financiers with funds looking to make loans.
• With banks the key issue remains debt servicing and reasonable loan ratios. The good news is the borrower can fix for 5 years at very low interest rates.
• Banks and non-bank financiers provide working capital finance for expanding businesses.
• Non-bank lenders provide interest only mortgages on commercial and residential property.
• Private lenders mainly looking for short term loans with clear repayment strategies.
• Other private lenders offering 2 – 3 year interest only loans with ability to role on satisfactory performance. Have access to larger loans in $2 - $5 million bracket here, a size normally too large for non- bank lenders.
Investing Money
We do not have anything to do with investing in the sharemarket, bank deposits, fixed interest securities, precious metals, currency, and so on.
• We do have clients looking for equity participation in business and property.
• And we do have clients looking for private loans with innovative returns to the lender. For example a $300,000 bridging loan, high interest rate, first ranking GSA security over receivables, with option to convert to equity on very favourable terms.
• All these opportunities are subject to signing Confidentiality Agreements and are available only to Eligible Persons in terms of the Securities Act.
Hope this helps answer some of the questions readers of this newsletter may have. Any other queries give me a call or reply to this email.
Cheers
JP