Program 7B: Revolving Lines of Credit
Program 7B (10x) – Non-recourse Loans for Projects, M&A or Growth Capital
Loan Product Highlights
- Minimum line $25 million (can discuss lower amounts on a case-by-case basis)
- Competitive interest rates, 10-15 year tenor; optional grace period
- No prepayment penalty
- Requires 10% cash downpayment, but borrower receives 10x — 100% of the line, not 90%
- Typical funding cycle in 45-60 days; allows lump sum distributions
- No personal guarantee required.
| Type of Loan: | Non-recourse, 100% LTC, Project, M&A (lump sum) or Portfolio financing. A true revolving line of credit with 1 or more disbursements — borrow then repay, and can borrow again. Also good for acquisitions and refinancings as well as project funding and growth capital. Uses 10% of the target amount as cash downpayment. |
| Length of Loan: | Flexible terms but standard is 10-15 years with 1-3 years grace period — deferral of principal repayment — for development projects. |
| Prepayment Penalty: | None |
| Initial Costs: | Up to $10,000 vetting and loan origination fee in two $5,000 payments. |
| Minimum: | $25 million minimum per loan; prefer $50mm-$1B |
| Interest Rate: | 7-8% fixed annual interest (APR). |
| Timing To Funding: | Close and initial funding in 45-60 days, typically, then Borrower receives 100% of the loan amount (10x the 10% downpayment), not 90%. Funding delivered in 1 or more tranches, can do lump sum distribution (full amount of loan proceeds in a single draw), if full funding available at time of draw. |
| To Qualify: | Project, venture or M&A transaction must have reasonably low risk, but more about the Borrower, KYC, and track record. Client needs to provide 10% downpayment proof-of-funds, then the downpayment is moved to the lender’s HSBC Paymaster account at closing and the lender will 10X that. |
Program 7B’s application steps:
- NDNCA (available upon request); fee agreement once scope of services are known. See below for fees.
- Executive Summary – lengthy business plan or offering memorandum, presentation, etc. is fine but lender also needs a simple 1-pager that captures the essential facts of what, where, how much, etc.
- Budget and Proforma in Excel
- Proof of Funds/Asset for the 10% (we need to be able to authenticate the value)
- Summary Application (specific to this lender, will provide the package of forms after screening)
- Preliminary “tranche” draw (request form/template) or Lump Sum transfer schedule
- Management/Sponsor bios … important as this line relies heavily on the borrower’s track record.
Download printable 1-page P7B Loan Program Tear Sheet
To start: Register your interest at In3Finance.com/apply
Fees associated with Program 7B’s Business Line of Credit
- In3 Vetting Fee — $5,000. For assistance or advisory services with preparing your file to pass lender screening and Due Diligence expectations. Main question: do you have a business case that shows reasonably low commercial risk. This may include proof points for certain underlying assumptions.
- Application Assistance and Origination Fee — $5,000. This is a one-time only fee per business no matter how many lines are requested. If you decide to do another line, or draw on the same one, you would not need to pay this fee again.
- Closing Fee — to be determined on a bespoke basis, based on loan size, and paid from the first tranche, not up front.
We look forward to exploring if this program is a fit for your needs, and helping you determine how to take your business to the next level or to best arrange funding for project(s) at hand.
