Example

              Client, has a project requiring 10,000,000 USD.
              Client has 1,000,000 USD available in capital in his corporate bank account.

Phoenix Lending Program Steps

1. Application Completed - The Submission Form is a simple 3-4 page form, dealing mainly with contact information and the details about your project. In addition you will need to provide your Executive Summary and Business Plan, Development Analysis, Performa, Resume’s of all principals, evidence of funds, Marketing Plan and Exit Strategy.

2. Application Underwritten (2-3 days)– Your complete submission package will be underwritten and an analysis will be made as to the feasibility of the project. You will be provided with a detailed Due Diligence report which outlines the questions and concerns of Phoenix Lending.

3. Conference Call (3 days) - A conference call will be scheduled to review the due diligence report with the principals at Phoenix Lending, Underwriting Staff, Attorney, and all principals on the project. Based on the findings in our conference call and a review of any additional information submitted, we will make a decision whether or not to offer financing to the project.

4. Intent to Fund Memorandum sent out (1-2 days) -
Applicants are approved based upon the strength of the project and the strength of the principals. Phoenix Lending will carefully select its borrowers based on the experience of the principals, their financial strength, and their vision. It is also necessary for the principals to facilitate the equity contribution that will allow us to transact the funding of this project. This contribution will be made available to Phoenix Lending to leverage a financial instrument and create the funds needed to finance your project. Phoenix Lending is concerned with credit, financials, future values, income verification, and background checks however, conventional underwriting guidelines do not apply and all projects which contribute to the technological advancement of our civilization will be considered.

*Phoenix Lending does not finance casinos, advertising projects, horror films, or oil and natural gas projects. We do place a priority on funding humanitarian projects, or projects that have to do will renewable energy or developments which are LEEDS certified.

5. Approval Executed and Wire is made to Escrow Attorney (3 days) - Client will be allowed 3 days to review the terms of the Intent to Fund Memorandum, execute, and return it back to Phoenix Lending Inc with the equity contribution. The Intent to Fund Memorandum will outline the process and describe the responsibilities that each party is held to. It also contracts the scope of the transaction as well as the end terms for the project. The Intent to Fund Memorandum also identifies and specifies the information that will be drawn up in the note.
All broker fees are out of the proceeds of the loan amount. The agreed upon amount of capital contribution that was placed with Phoenix Lending and is fully refundable at the close of the transaction (initial 1M). Any costs that may be needed for legal preparation, document drafting, or facilitator service charges are covered in the lenders origination fee. These costs or fees are taken as a net of the capital contributed. Meaning that if our terms stipulate that $1,000,000 is needed for us to fund $10,000,000 then any costs or fees required do not affect the total amount funded.

Terms of the note are typically as follows:
Deposit – 15% of requested loan amount is needed if loan amount is under 10M. 10% if loan amount is over 10M
Pre-paid Interest – 12 Mo. Interest at 7.5% Paid Up front. No payments due for first year
Amortization – 30 Year fixed 6.00% - 7.75%; Interest Only Payments; 10 Year Balloon; No Pre-payment penalty.


5. Financial Instrument Secured (21 days) -
Our costs to use an instrument varies from 10%-15% of the face amount of the financial
instrument. However, we can attain significant leverage depending on the premium. Therefore
we can secure an instrument for your projects without the conventional underwriting you are
accustomed to. All of the underwriting is done in-house by one of our underwriters and we make the final decisions whether to fund your project before any approvals are issued.
Per the instrument provider’s procedures the instrument is issued and placed on Euroclear/DTC
for viewing/blocking. Some providers will use 10% others will charge 15% of the face amount of the instrument to be secured for their costs relating to issuing. Once the instrument has been issued and (normally 10 days), the instrument is placed in with our credit facility to draw a line of credit.

6. Monetization (21 days)
Our Credit Facility monetizes the financial instrument normally at about 85% LTV. The funds
are placed into Phoenix Lending’s Account and then are transferred to the closing attorney for final disbursement. Borrower will receive a refund of the equity deposit out of the over funded amount disbursed by the credit facility.

7. Funds Disbursed for your Project
The funds are disbursed to you for your project as per the Approval and the note. All funds not
disbursed to you for your project directly, but are disbursed to the Phoenix Lending to mitigate
project risk and attain profitability. The Instrument is taken out in the name of Phoenix Lending
making the borrower not liable retiring the instrument upon expiration. The Phoenix Lending will retire the instrument after a year and one day, however may have the option to extend the
Instrument for additional premium. This means that with the funds not disbursed to your project, roughly 60% of the monetized financial instrument, Phoenix Lending is able to introduce this capital to its trade platform for investment purposes. This is how we are able to remain profitable and offer such competitive terms to commercial ventures. As you can see, through significant leverage, a truly unique funding program has been created.