Development Financing
$50 Mil to $2Bil Development Financing or Business Line Of Credit
Development Financing for your next large project can be a daunting task. Foresight Business Funding has multiple development loan options for hard to finance industries such as cannabis, oil & gas, renewable energy, hotels, etc.
Through one of our partners, we have obtained using exclusive access to a direct lender who basis their funding decisions on the merit of your project.
Call us to discuss your large development project or acquisition in the United States or other developed countries.
Development Financing and Business LOC program overview:
Business Line of Credit & Project Line of Credit Highlights:
- 5%-7% FIXED interest rate range with 5-Year Term Interest-Only (I/O) Payment
- EXCLUSIVE ACCESS to established Direct Lender with an A+ reputation- They DO NOT deal with the public directly
- Deal Size: Min. $50 Million – $2 Billion Line of Credit
- Unconventional Structure– lender takes (1st) lien in the project/collateral property
- Projects are not required to have commercial real estate as collateral, but transactions with commercial real estate collateral have a much better chance of approval.
- Business Credit lines are available up to 100% LTV/LTC financing with a 20% liquidity requirement
Business LOC Uses:
Acquisition | Refinance | Ground Up Development |Business Expansion
Asset Classes:
- Cannabis
- Multifamily
- Retail
- Mixed Use
- Office
- Gaming
- Hotel/Resort
- Portfolio
- Renewable Energy
- Oil and Gas
- Raw Land
Business or Development Project Geographic availability: includes USA & (select) Int’l. Countries
Recourse: Non-recourse – with standard bad boy clause
Pre-Pay: No prepayment penalty – 30-day notice required
Borrower Liquidity REQUIREMENT:
20% cash liquidity is required to be provided by the borrower – the 20% is deposited in an ICA account, to be held in an FDIC-insured bank, at the time the loan docs are signed (ICA account is a transactional account that allows the lender to draw out interest).
Unlike an SBA transaction, the borrower can create this required liquidity by using bridge loans, other temporary financing, or any other method they have available to them.
Interest Charge: Interest is charged only on accessed funds
Term: 5-year term with a 1-year extension
Case Study #1 Cannabis Development Financing
- Business Type: Industrial Hemp Manufacturing
- Project Location: Midwestern, USA
- Project Funding Need: $180 Million
- How Much Had Borrower Spent To Date At The Time Of PIF Submission: $5 Million
- Amount Available For Cash Down Payment: $36 Million
- Source Of Down Payment Funds: Shareholders and Investors
- Exit Strategy: Sell the company privately or issue an IPO
Case Study #2 Financing for Manufacturing Facilities
- International firm looking to expand its operations into the United States
- LOC Purpose: Ground-up construction for 5 manufacturing facilities, equipment for the facilities, & overall business expansion
- This LOC transaction DID involve real estate – raw land.
- Their original ask was for $120M but after initial call w/the lender, the LOC was increased to $180M
Case Study #3 Oil and Gas Project
- The purpose of the LOC transaction was to further develop existing land with additional oil wells.
- The Line of Credit transaction DID involve real estate & oil wells as collateral.
- This is a US-based firm looking to develop a lending relationship. They have similar projects on an ongoing basis and want to work with a lender who understands their industry, their firm, & their ongoing financing needs.
- Oil & Gas firms have been starved by Wall Street echoing the public cry to move to a lower carbon footprint and the whole EV movement.
