Profit Participation Loans – How they work
PPL
Profit Participation Loans (PPL) are loans made by multiple lenders to a single borrower. They are also known as profit-sharing loans.
The first characteristic that distinguishes a PPL from other types of similar loans is the involvement of two or more lenders.
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nother distinguishing mark of the profit participation loan is the fact that each of the lenders is an investor in the project funded with the proceeds from the loan. This means each lender receives a agreed share of the profits generated as a result of the project.
You should note well that this share of the profits is above and beyond the repayment of the principle plus interest that each of the lenders receives over the agreed period of the loan.
This is just one of the reasons that makes a well researched PPL fund a potentially attractive investment opportunity. We are currently highlighting a fund focusing on private equity investment. The fund provides a unique opportunity for investors to benefit in the growth and development of small to medium-sized businesses, through asset-backed or secured capital investment. Contact or subscribe for details on this particular high performing vehicle.
Find the right business – share in the rewards of success
A unique opportunity for investors to benefit in the growth and development of high profit small to medium-sized businesses
How Are The Deals Structured?
- Fund establishes an SPV – a ‘Special Purpose Vehicle’.
- This SPV is 100 % owned by the fund.
- The SME has a signed sales agreement with an insurable customer – client/retailer.
- The SPV finances the purchase of the goods sold.
- The SPV supplies and invoices the goods sold to the customer.
- Customer pays within agreed payment period and goods delivered to the SPV.
- The SPV pays the agreed margin to fund and SME.
Typical deals have an average duration of 4 to 6 weeks.
The borrowers are dynamic small and medium sized businesses with a high profit margin
Characteristics Of Our Highlighted PPL
- The lender receives a fixed interest in combination with a participation in the profits of the deal.
- PPL’ s are always asset-backed.
- Interest normally fixed at a minimum of 1% per month.
- Expected profit share minimum of 1% per month.
- The borrowers are dynamic small and medium sized businesses with a high profit margin.
The Alternative Investment Platform is your key to success. Subscribe above to get full information on this fund.
Share Classes
- Minimum investment amount ˆ$125,000 or equivalent in other currency for well informed investors.
- Monthly redemption after 12 months.
- Minimum investment amount $10.000 or equivalent in other currency for institutional investors.
- Monthly redemption with a notice period of 90 days.
- The fund is available in US Dollars, Euros
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