•The Source of Funds for the loan is provided by our Depositor.  In simple terms, the lender receives $1 in security for every $1 borrowed, plus the assets of the Depositor if required.

•Commercial Lender will earn approximately a 1-2% spread each month from the totally secured transaction. A greater spread is achieved when money is borrowed from the federal reserve.

 

•In the previous example, the CD purchased increases the Commercial Lender’s borrowing power by $500,000,000. For every $1 in deposits, borrowing power is increased by $10.
 

•The loan is secured by the CD and the assets of the borrower, making this loan superior in credit quality.