Institutional Guidance
Frequently Asked Questions
& Mandate Parameters
Key operational guidelines, facility structures, equity parameters, fee transparency, and origination protocols for $165M+ project debt placements.
01. Fee Transparency & Compliance Protocols
Does Structured Finance or American Business Capital charge upfront fees?
No, never. Neither Structured Finance nor American Business Capital ever charges upfront fees, application fees, retainer deposits, or advance evaluation costs. We are compensated directly by our correspondent private capital syndicates and institutional partners upon successful transaction funding. Any third party requesting advance fees or retainers in our name is unauthorized and fraudulent.
If Structured Finance charges no upfront fees, what is the Lender Counsel Retainer?
While Structured Finance never charges application fees or broker retainers, advancing a transaction to the formal underwriting stage requires a legal retainer. Following the mutual execution of a formal Letter of Intent (LOI) issued by the lender, this retainer is disbursed directly to the designated lender’s legal counsel—never to Structured Finance or American Business Capital—to cover the third-party legal costs of drafting the closing documents and conducting formal asset diligence.
How are lender commitment fees structured and paid?
Our capital partners utilize a standardized, flat commitment fee calculated against the total facility amount. To preserve your operational liquidity, this fee is fully financed into the capital stack. It is not an out-of-pocket expense; it is deducted directly from the credit proceeds at the final transaction closing table.
Do brokers and intermediaries need to be listed on the final closing documents?
Yes, absolutely. For strict compliance and institutional transparency, every participating broker, advisor, and intermediary receiving compensation must be explicitly documented and listed on the final closing and settlement statements. We do not participate in undisclosed fee agreements or off-ledger disbursements.
02. Lender Roles & Fraud Prevention
Does Structured Finance issue direct LOIs or loan commitments?
No. Structured Finance operates strictly as an institutional capital advisor and debt origination broker. We do not issue direct Letters of Intent (LOIs), binding loan commitments, or execute internal loan agreements as a principal lender. All formal term sheets, LOIs, credit approvals, and loan documents are issued and executed directly by our correspondent institutional lenders and private capital syndicates under their official corporate seal.
Who are the actual underwriting lenders and capital providers?
Structured Finance operates in strict strategic alignment with correspondent institutional lenders, non-bank private credit syndicates, and global asset management firms. We package and broker the debt, while all term sheets, formal credit approvals, and capital disbursements are executed directly by these regulated capital providers.
How can borrowers guard against broker impersonation or fraudulent documents?
Borrowers and developers should exercise absolute diligence when working with third-party intermediaries. Neither Structured Finance nor American Business Capital will ever issue a document promising a loan guarantee or demanding upfront money. If you receive a letter or LOI on American Business Capital or Structured Finance letterhead offering a direct loan commitment or requesting upfront payments, it is fraudulent. Please report unauthorized solicitations directly to our corporate office at 615-200-8396 or via info@structuredfinance.net.
03. Facility Terms & Underwriting Stack
Are the interest rates on your structured debt facilities fixed or floating?
Capital is deployed at a strict fixed interest rate established directly by our private capital syndicate. This benchmark pricing guarantees predictable debt service and completely isolates the project and sponsor from floating market risk during the critical construction and stabilization phases.
What is the minimum deal size underwritten by Structured Finance?
Structured Finance specializes exclusively in large-scale institutional project debt facilities with a minimum total project cost base of $165 Million USD. We arrange capital for ground-up developments, infrastructure projects, and portfolio acquisitions extending through $800M+ globally.
How does Structured Finance achieve up to 90% Loan-to-Cost (LTC)?
We engineer a co-terminus capital stack that combines approximately 75% Senior Construction Debt with roughly 15% Subordinated Mezzanine Debt. By packaging both tranches into a single execution timeline with correspondent private capital syndicates, we eliminate the need for costly preferred equity or sponsor ownership dilution.
What equity position is required from the project sponsor?
Sponsors are required to maintain a 10% equity position in the project. This requirement does not need to be 100% liquid cash at closing; it can be satisfied through unencumbered cash equity, verifiable land equity, architectural/engineering CapEx already deployed, or pre-development entitlement expenses.
Can the 10% sponsor equity requirement be satisfied by cross-collateralization?
Yes. In addition to liquid cash, unencumbered land equity, and verifiable pre-development expenses (such as architectural and engineering CapEx), the 10% sponsor commitment can often be satisfied by cross-collateralizing documented, unencumbered assets already invested in the project footprint or held within the sponsor's corporate portfolio.
What third-party reports are required for underwriting?
Standard institutional diligence is required prior to closing, including bankable MAI Appraisals, Phase I/II Environmental Site Assessments (ESA), Geotechnical Reports, and comprehensive Feasibility Studies completed by recognized, independent firms.
Are Structured Finance debt facilities recourse or non-recourse?
Placements are structured as non-recourse debt facilities underwritten directly against asset quality, feasibility studies, and projected operational yields. Standard institutional non-recourse carve-outs (standard "bad-boy" guaranties covering fraud, voluntary bankruptcy, or environmental indemnities) apply.
04. Scope, Confidentiality & Market Terms
What specific asset classes and sectors fall under your financing mandate?
Our $165 Million USD minimum mandate is open to all viable commercial sectors globally. This includes heavy infrastructure, natural resources, utility-scale energy, advanced manufacturing, large-scale commercial real estate (such as high-rise mixed-use and hospitality), and portfolio acquisitions that include a substantial physical development component.
Does Structured Finance arrange project capital outside of the United States?
Yes. Our operational mandate is worldwide. We arrange project debt for qualified sponsors globally, subject to international institutional underwriting standards, cross-border legal compliance, and the macroeconomic stability of the host jurisdiction.
How is sensitive project data and sponsor financial information protected?
As an originator of institutional-scale transactions, we adhere to strict confidentiality protocols. Deal teasers, pro formas, and sponsor financials are securely routed exclusively to our internal underwriting team and direct correspondent capital partners. We execute binding, mutual Non-Disclosure Agreements (NDAs) prior to granting access to your comprehensive data room.
What is the typical execution timeline from submission to funding?
Our direct capital path provides a targeted closing velocity of approximately 4 months from initial term sheet execution. Execution timing is contingent upon prompt sponsor diligence delivery, completed bankable feasibility studies, and third-party engineering reports.
Are the financing terms and leverage parameters on the website guaranteed?
No. All facility parameters, leverage thresholds, and pricing metrics outlined on our platform represent current benchmark targets established by our correspondent capital syndicates. Institutional private credit markets are dynamic; lenders reserve the right to adjust underwriting guidelines at any time. All final terms are dictated exclusively by the lender's formal LOI and credit committee approval.
Market Volatility & Regulatory Notice
Market terms, leverage thresholds, and pricing parameters are established by our correspondent institutional lenders and private capital syndicates. As private credit markets fluctuate, capital providers may adjust their underwriting guidelines, sector allocations, or facility terms at their sole discretion and without prior notice. While Structured Finance endeavors to update published mandate parameters promptly, all figures presented are for informational benchmark purposes only. Final transaction structures and terms are governed exclusively by the lender’s formal Letter of Intent (LOI) and binding credit committee approvals.
Have Additional Questions?
Connect With Our Origination Desk
If your project parameters fall within our $165M+ mandate, submit your deal executive summary directly for immediate underwriting review.