GENERAL FUNDING & LEASING, INC
102 Dibble Hollow Lane -
Windsor Locks CT USA 06096 - 561.350.4971
The Mission Statement of
General Funding & Leasing is to provide the Client viable financial options and
substantially
assist with the financial success of the Clients project. We are
not lenders or venture capitalists for the Client,
but we are former bank officers,
bank investors, commercial real estate lenders/investors and
developers, executive
officers, and insurance executives; providing a valuable consultative
financial
service for our Client. Collateral is the basis for any successful
conclusion
for the acquisition of fresh capital. Our group has in
excess of one hundred
years of commercial lending,
commercial banking, real estate lending,
development,
and commercial
asset-backed financing in our
career backgrounds.
We
are international financial consultants working on the Clients behalf.
GLOSSARY
& TERMINOLOGY
The following glossary of terms and terminology
is intended to provide the reader basic information regarding
certain financial
terms that are used daily within the international finance community.
The
financial terms may or may not be known to the reader or understood by the reader
if they have no
knowledge of banking, finance or the capital markets in London,
Munich, Frankfort,
Zurich, and/or New York. The terms are not intended to be
all of the terminology used on a daily basis, as they are too
extensive to
list in this venue, but they are used by
General Funding & Leasing, its sources
of capital, investors, and lenders.
Angels - An investor or group
of investors that will invest cash in a company for a percentage of ownership
in the enterprise, and may range from 30% to 85% based on the amount
of cash
investment requested of the Angel.
Applicant - The entity that
is applying for a credit or any type of financing from an investor/lender, collateral
provider,
or other source of capital be it private or public.
Asset
- A tangible item with substantiated value, cash or other, which is owned by a person,
a group of individuals,
or a corporate entity. Generally these assets are delineated
in detail on the owner's personal or corporate
balance sheet, and we are concerned
with those assets that have equity, and are not
assigned/leveraged to other investors
or lenders.
Asset-Backed - A form of financing that usually involves
specific assets such as equipment or real estate.
Other forms of collateral
may be pledged to collateralize the debt obligation, secure the term, and
interest
rate borrower determines economically beneficial.
Asset Financing
- A form of financing wherein the creditor utilizes the borrower's assets that are
free and clear
of liens as collateral for a loan. Usually reserved for a company
in business for many years, with proven
history of profits and excellent cash
flow from operations.
Asset Protection - A form of planning wherein
the owner of certain assets, with fee-paid professional assistance,
will sell,
transfer and/or otherwise cause the movement of the assets to a location determined
a tax haven,
a legal shelter, or a tax shelter.
Banking Day -
A day considered a working day in the international banking community and not a
national or international banking holiday.
Bank Rate - The rate
of interest in percentage the creditor (bank lender or other) is charging the borrower
for the use of the funds borrowed under written agreement or contract.
Bond
- A financial obligation of an institution (issued by a bank, corporation or government)
agreeing to pay a
specific rate of interest to another named party and over a
specific amount of time. Various bonds may
have credit ratings or ratings established
by such firms as Moody's or Standard & Poor's, and these
types are acceptable
forms of collateral.
Cash-Backed - Refers to an asset being assigned
to a creditor that is backed by one form of collateral and that is cash.
Confirmation
of being cash-backed is concluded bank-to-bank.
Certificate
- A form of Collateral which will be used from time-to-time and usually an Insurance
Certificate, referred
to as an IIG or international insurance guaranty certificate.
This form or collateral, when rated high enough is an
acceptable form of collateral
for our purposes.
Collateral/Collateral Enhancement - A term covering
all collateral indicating a borrower will provide the investor/lender,
capital
source, acceptable collateral to close their loan. For our purposes, the collaterals
deemed as acceptable are
international letters of credit, a bank guaranty, or
an international insurance certificate. All collateral proposed
is acceptable
at the sole option of the investor/lender, creditor or source of capital only.
Correspondent
Bank - A larger bank that will accept deposits from a smaller bank and in turn
will provide
sophisticated financial services for the smaller bank at reduced
or discounted pricing.
Credit Line - A loan proposal and type of
secured loan that has a specific rate of interest, but can be open-ended
having
no specific term. Funds are drawn from the approved Line as required by the borrower.
Other collateral is provided the creditor in order to close this type of loan.
Debt-to-Income - A financial ratio which is formulated by a credit
administrator for the credit grantor before/during
the loan underwriting process
to determine the effect of debt against the asset(s) ability to provide adequate
income and/or a specific percent of income compared to the amount to be borrowed.
Default - A borrower is in violation of one or more then one of the
written loan provisions contained within the note,
the mortgage or another agreement
signed by an investor/lender and a borrower. If not remedied in a specified
amount
of time, a formal declaration of Default is made to borrower by the investor/lender,
under the
Law, and in a manner called for within the loan documents.
EFT
- Exchange Funds Trading and is a financial service provided by large banks of
the
world for specific known and qualified Clients.
Equity - Value
that is substantiated via an appraisal specialist with the type of collateral in
question such as an
office building, apartment complex, or other hard asset.
The actual equity in the asset, whatever it may be,
is the difference between
its assumed value and any debt against the asset.
Equity Financing
- A form of financing (may also be referred to as asset-based financing) wherein
the difference
between the asset's value and the debt against the asset is used
to secure short-term financing and almost
always discounted requiring additional
collateral to be provided the creditor. This type of financing
is usually reserved
for companies in business for a long period of time,
free/clear assets, and with
excellent cash flow.
Financials - The extensive financial package submitted
to an investor/lender or source of capital and will include
all current/historical
financial data of the borrower/applicant over a period of one to
five years or
as requested by the grantor.
Financial Risk - An internally generated
percentage or number assigned by the investor/lender or source of capital,
to
a loan they have closed or are about to close and usually determined after the underwriting
process,
following receipt of all third party reports.
FED Wire
- The electronic transfer of cash from one financial institution to another financial
institution(s)
operating worldwide and within the FED System.
Guaranty
- Commonly referred to as the collateral Instrument provided to the credit grantor
as security or
collateral in order to fund the loan of the borrower.
Hard
Commitment - The formal binding written commitment, following receipt of all
third party reports and loan
underwriting, provided to borrower from the credit
grantor, investor/lender, collateral provider or source
of capital, providing
a borrower the specific conditions under which they will close the borrower's loan.
Joint Venture - A formal written agreement between two or more parties
that clearly states all terms and conditions
of the JV, what each JV partner
is bringing to the table, and the percentage of ownership in the JV to be
held
by each party to the agreement.
LIBOR - The London Interbank Offered
Rate and the rate of interest established by the Bank of England
and in cooperation
with the large banks within the UK banking system.
Proof of Funds -
The owner or designated corporate officer of cash and/or securities proves by providing
written, confirmable evidence of the existence of such cash and/or
securities
it has stated verbally or in writing.
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