Are there advance fees and costs to initiate the loan?The costs to the client are as follows:
1.) The application documents themselves and the cost for us to provide you a draft format required, accept your application as presented, discuss with you our Client any items requiring clarity on the application forms, then we review the project presentation provided, carryout initial first stage due diligence and then write back a Term Sheet outlining the funding proposal - cost US$900.00 - payable before we can start any negotiation of a potential transaction.
2.) Once the provided TERM SHEET that is presented to the Client is negotiated and determined ACCEPTED, then a Commitment Cost becomes due and necessary for payment. This cost varies as to amount of loan requested and the structure of the loan applied for; it serves as your commitment to accept the procedure outlined for a successful close.
NOTE: It must be understood we involve lawyers, accountants and our bank relationships to provide everything to be a successful transaction between ourselves and the Client. These other involved parties also require a Commitment cost from us to carry their responsibility involvement within the transaction. The Commitment Cost is our assurance that we are working in unision and both the Client and ourselves are COMMITTED to finalize what the Term Sheet states.
Just a Comment: If you would take your project forward to a conventional institutional Lender they would immediately require you to make payment to review the project, this would not be for approval, but just a cost for the review to determine the possibility of a loan approval.
If the institutional Lender would tentatively approve your project for funding, they may impose an additional cost for issuance for a written Term Sheet to provide a platform for loan negotiations. The institutional Lender would then also reflect a commitment cost once the Term Sheet was accepted to take care of the administration costs and make certain you were committed to the project funding offered.
3.) Additional costs would be related to the issuance of the collateral. These costs would be Bank charges from the Bank with whom the applicant may choose to work through. These costs could involve the bank to issue an introductory letter (Ready, Willing and Able (RWA)) to the Client, usually at a minimumal cost, if any cost at all. This letter would usually be part of an overall process for the bank to confirm collateral issuance. If the bank is to forward a S.W.I.F.T., via MT799 format (or equivalent) as a pre-advise message in a bank to bank communication, then these S.W.I.F.T. procedures to confirm the RWA letter to our bank would usually be at a cost.
The bank cost for sending the confirmation of the collateral, for example a MT760 Standby Letter of Credit (SBLC)), MT760 BLOCKED FUNDS instrument, or equivalent financial instrument, or a bank responsibility on specific collateral, sent via S.W.I.F.T. banking procedures. The bank will charge an issuance and transmission cost and that is for the Client to negotiate all the referenced bank fees on their own - this is NOT a part where we are involved.
The Client banking arrangement is the sender of the collateral, our Bank is the Receiver and we are responsible for our costs with our bank and the Client with their bank.
Remember that this expense is ONLY applicable when all is finalized between the ourselves as Private Lender and Client. Minimal fees are received by Trust Management Services Inc. to reach the approval stage to the Client. All costs applicable are justified as to charges made.