BlueSeed Holdings
Types of Lenders
BlueSeed works directly with all kinds of lenders, depending on the how capitalized a borrower is, and more importantly their respective risk profiles. Below are general overly-generalized classifications for the differing kinds of lenders that we work with:
Standard Institutional or Corporate Lenders
Licensed Type: In respective jurisdiction of loans.
Loan to Value (LTV): Typically between 60% to 75%
Minimum Operating Income: At least $1m EBITDA, or $2m ARR, or total annual revenue of $8m or more
Minimum Liquidity: If cash flow positive, up to 50% of EBITDA can be used to finance interest loan payments; OR its current assets (i.e. cash on the balance sheet) to correspond to 25% of the loan requested; OR its current assets should be able to pay for at least the first 6 months of interest payments.
Underwriting cost: Almost none
Loan Amount: $1m to $800m
Term: 6 months to multiple years (depending on lender)
Investment Bank
Licensed Type: In respective jurisdiction of loans.
Loan to Value (LTV): Typically between 70% to 90%
Minimum Operating Income: At least $500k EBITDA, or total annual revenue of $2m or more
Minimum Liquidity: If cash flow positive, up to 50% of EBITDA can be used to finance interest loan payments; OR its current assets (i.e. cash on the balance sheet) to correspond to 10% of the loan requested; OR its current assets should be able to pay for at least the first 3 months of interest payments.
Underwriting cost: Between $20k to 0.5% of loan requested
Loan Amount: $1m to $200m
Term: 6 months to multiple years (depending on lender)
Low-Interest Convertible
Licensed Type: Select private multi-billion dollar family office.
Loan to Value (LTV): Up to 100%
Minimum Operating Income: Profitable or roadmap to profitability, unique value proposition.
Minimum Liquidity: Discretionary subject to negotiations.
Underwriting cost:
For loan amounts between $1m to $5m, insurance $48,500 underwriting cost and 2% bond underwriting;
For loan amounts between $5m to $10m, insurance $58,000 underwriting cost and approx. 2% bond underwriting;
For loan amounts between $10m to $20m, insurance $78,000 underwriting cost and approx. 2% bond underwriting;
Insured loan is completed a Singapore-licensed insurance agency.
Loan Amount: $1m to $500m+
Term: 6 to 7 years
Conversion Terms: Converted to up to 17% of voting shares of the company (or equivalent) at the end of term but prefers return of loan principal at the end of term rather than conversion into equity.