This facility is named after the London banking
fraternity's nick-name for a form of facility designed to provide evidence
of funding capabilities to satisfy sceptical or difficult vendors where,
even though evidence of capital is required there no requirement to make
direct use of it. This situation generally arises as a result of
favourable settlement dates within back-to-back, buy/sell arrangements.
Care should be taken in the use of this facility as it could, in some
jurisdictions, be contrary to accepted or legal practice.
Our funders are happy to provide a bespoke arrangement whereby very
substantial capital sums can be evidenced for a short periods, typically
30 -40 days. Rolling facilities are available via a monthly renewal
option with commitments from the facility provider to renew up to one year.
The fee charged will be very dependent upon the nature of the
arrangements, the amount involved, the required form of documentation and
the lead time.
Please note that this facility is not suitable in cases where it is
proposed to represent the proven funds as security or collateral for a
loan or any other position whereby the funds are to be represented in a
way that hides the true nature of the position. It is the Applicant's
responsibility to ensure that this situation does not arise.
General Outline Terms and Conditions
Capital Sum Limits: From $10
- 200 million.
Larger sums are available but will be syndicated between a panel of
funding sources.
Term and Renewals: As required but generally in
30 - 45 day increments depending upon amount and overall structure.
Setting-up and Renewal Fees: Negotiable
depending upon amount. See Facilities (1) - (5) in the "Short Summary". Renewal
fees are by negotiation.
Instalments: Not available for this
facility, all setting-up fees must be paid in full on closure. Renewal
fees to be paid not less than 5 working days prior to the renewal date.