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.