Global Business Financial Services

Procedures and Process

Step 1: Referring Broker obtain signed loan application and complete underwriting documents from borrower for Global’s review

Step 2: Global’s team will review file with in-house underwriter and if file receives preliminary approval, Global will issue Letter of Interest (LOI) with loose terms to borrower (i.e.: Approximate loan amount, interest rate range, credit facility’s fees and success fee range, etc). The LOI will indicate the processing fee. Processing fee is non-refundable. It is used to compensate underwriters to get the terms with the credit facilities where Global has approved credit lines.

Step 3: Borrower signs the LOI and wire the processing fee to Global.

Step 4: Global’s underwriter now begins the detailed work of vetting the complete file and reaches out to the underwriters of the credit facilities and obtain fixed terms for the loan.

Step 5: Global issues Approved Funding Term Sheet with fix terms and indicates the Due Diligence fee. To prevent any collusion, the Due Diligence fee is to engage a third party Valuation Company to conduct the due diligence on the borrower’s company, submitted documentation (and conduct appraisal of the real estate, if applicable) on behalf of the credit facility. If there are no surprises, everything is validated and verified, there is no reason for the file not to be funded. However, if during the course of the Due Diligence, undisclosed information is discovered that cannot be mitigated, and/or there are circumstances beyond our control that prevents the funding to take place, then up to 50% of the Due Diligence fee is refunded to borrower (terms and conditions are fully disclosed on the Term Sheet).

Step 6: Borrower agrees, proceeds by signing Approved Funding Term Sheet and wire the Due Diligence Fee to Global.

Step 7: Global engages the third party Valuation Company to commence Due Diligence (on the average the it takes approximately 15-20 banking days for the Due Diligence process).

Step 8: Credit facility process the report from the Valuation Company and if all is well, Global will send to borrower a Mutual Non-Disclosure Agreement and a Fee Agreement for borrower to execute before the Commitment Letter is issued by the credit facility.

Step 9: Upon receipt of the signed documents in Step 8, the Commitment Letter from the credit facility is issued. (Typically the Commitment Letter comes with some stipulations for borrower to comply with. On the average, this process takes 10 banking days).

Step 10: Borrower satisfies the stipulations and loan documents are prepared. A closing date is scheduled with all parties involved (on the average, this process takes 7 banking days).

Step 11: Loan closes and funds are disbursed to the appropriate parties. Referring broker is paid within 5 banking days.