New SBLC Program Available!
New SBLC program available, don't have enough money for an SBLC? Western Capital can provide Gap coverage
so you can get you instrument.
Western Capital (WesCap) is a corporate guarantor, operating primarily in the area of bridge loan guarantees, gap financing guarantees, and interim bonding. WesCap is a wholesale servicer and deals only with financial lenders and providers of financial services.
In the case of our new SBLC program, in select instances, WesCap can indemnify an investor or investors, by covering fee gaps (deficiencies) in a situation wherein the client is unable to provide full fees for term coverage required by the SBLC Beneficiary. A gap indemnity of this type can be provided in instances where the client’s fee gap is in a dollar amount equal to 49% or less of the total required fees. In such situations, WesCap will insure payment of the gap/deferred to the investor or investors. Premiums for such coverage are paid monthly at a 15%(+/-) annual rate, with the deficiency balance amortized over the number of unpaid months of the instrument issued.
EXAMPLE:
A client instrument in the amount of $1000,000 requires fees in the amount of $30,000. The client can remits $16,000, leaving a gap of $14,000
Total Fee Due: $30,000
Total Fee Paid at Issue: 16,000
Fee Gap: 14,000
Total of Annual Premiums @10%: 1,400
Monthly Premium: 233
In addition to this monthly premium, the client will be required to remit the Gap Fees (unpaid SBLC total fees) over the number of unpaid months of coverage in the SBLC.
EXAMPLE:
Total Fee Gap: $14,000
Total Instrument Fee Cost Monthly: 2,500
Months Covered By Fees ($16,000 Paid): 6.4
Months Unpaid: 5.6
$14,000 Gap Fees ÷ 5.6 Months Unpaid = $ 2,470/month
Total Monthly Payment Due WesCap: $ 2,703
The above examples are intended as a guide to the program offered by WesCap and should not be considered as an offer of the actual program.
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