All offerings introduced by Innova Gulf Partners are asset-backed Private Secondary Market Transactions that are secured by strong, tangible collateral. Unlike a traditional bank loan, which is approved based on a borrower’s credit score, balance sheet ratios and cash-flow statements, asset-based lending (ABL) is granted based on a thorough investigation into the tangible assets that a borrower can offer to secure the loan.
Borrowers can put up equipment, inventory, accounts receivable and other liquid assets such as real estate to secure the financing they need. In the unlikely instance that a borrower defaults, the originator, trustee or asset managers can seize the assets and sell them to pay off the members in the loan.
The originators of our asset-based Private Secondary Market Transactions have deep expertise in asset valuation. In addition, Innova Gulf Partners only accepts investment opportunities with low loan-to-value (LTV) ratios. LTV ratio is a financial term that expresses the ratio of a loan to the value of an asset purchased. The lower the LTV, the less risky the loan is because it’s backed by a lot more collateral than the value of the loan.
For example, Innova Gulf Partners Members participated in a $200K Pro Athlete Loan to an NBA player, for example, that was secured by his $2M guaranteed player contract, as well as insurance in the event the player should become injured, die or otherwise fail to complete his contract. Our Members earned 10% over the loan’s 24-month term, receiving their pro-rata interest payments on the 15th of each month.