Equity Business Trust acts as a lender for viable business and real estate projects as well as the facilitator of guaranteed credit enhancement facilities for lending institution and investors.

Our guarantee financing concept is actually quite simple: The lending bank or Investor, upon looking at the borrower's assets and earnings, may not feel completely assured that the borrower can pay off the loan when it becomes due.

The normal Barriers when applying for a business or real estate loan:

The lender/investor first looks at the size of the loan request, your monthly income, the amount of security offered, the business or real estate project, and its financial risk and reward. Based on that information, he determines whether it fits within his guidelines. Then, most likely, the lender will require third party endorsement and/or collateral assignments. The third party provides the lender with assurance that the borrower's mortgage will meet the repayment terms.

Banks - and governments, for that matter - have been providing such guarantees for many years to eliminate the perception of risk. For example, a bank's irrevocable Letter of Credit and standby Letter of Credit, as well as 90-Day U.S. Treasury Notes, are instruments that support a wide variety of debts. Industrial Revenue Bonds, Economic Development Bonds, and much of the foreign government debt are additional examples of credit-enhanced debt instruments. The amount of this type of debt in the world today is estimated to exceed $1.8 trillion annually.

How do we cut through the red tape?

Equity, as the guarantor, issues a irrevocable Trust Debenture, in effect promising to repay the loan at maturity in the event that the client defaults.

Using a similar approach and applying it to business projects and real estate funding eliminates a major perceived risk. Equity Business Trust will provide credit enhancement and principal repayment guarantee facilities for our clients and their business as well as real estate projects.

How do we secure these loans?

We usually secure our loans by Real Estate Trust Deeds and/or Bonded Life Settlement Policies.

By advancing the client an additional amount to be transferred into a blocked Trust Account, where it will earn and compound to the total principal amount over the term of the loan, thus insuring repayment at maturity. Equity Business Trust requires this instrument to be held in our safekeeping.

Each of our Investor is 100% protected through a guaranteed and secured Trust Account with a Triple A rated bank, irrevocable Trust Debentures and Bonded Life Settlement Policies, which are issued and bonded by "A" and "AA" rated insurance carriers. The secured trust account has as beneficiary's the names of each Investor to secure their capital to 100%.

In other words: Your business is responsible to pay the annual interest rate to each Investor and probably a profit share based on your Investor agreements. However, your business is never liable for the repayment of the Investment Capital, because the Insurance Carrier, the Bonding Company, their Underwriters and the Trustee Bank guarantee the full repayment of your Investors Capital at maturity.

Here is how the Investment in your Company is broken down:

Seventy percent (70%) of the Investment Capital will be placed into your Project Development Fund. The remaining thirty percent (30%) of the Investment Capital will be placed into a secured trust account with a Triple A rated bank. The return on this blocked trust account is a guaranteed interest rate of 13% per year and is secured by purchasing Bonded Life Settlement Policy's as a collateral assignment for a maximum of ten years.

The blocked trust account will earn and compound to the total principal amount over the term of the investment agreement, thus assuring investors of repayment at maturity even in the unlikely event that your company would default.

The annual rate of return on the blocked trust account is 13% and is secured by purchasing Bonded Life Settlement Policy's that have been underwritten to the standards of a bonding company. The bonding company, for a bonding premium, is willing to provide a performance bond warranting that should the policy not mature by a specified date, the bonding company will buyout the purchasers' interests in the policy at face value. The return on the investment is typically lower on bonded policies because part of the purchase funds must be utilized to pay the performance bond premium, which is paid in a lump sum at closing.

Bonded Life Settlement Policy's are purchased at a known discount price. Both the purchase price and total return at maturity are known well in advance and to the penny. As such, the return on investment is fixed and is immune to the volatility of the stock or bond markets, as well as interest-rate fluctuations and other economic exigencies. Their safety is considered exemplary, as the financial status of top-rated insurance carriers is established by trusted companies such as Standard & Poors and Moody and these securities guarantee the repayment of maturity after exactly 10 years at a guaranteed interest rate of 13% per year.

For further information please visit:

http://www.247equity.com/enhancemen...