Education Support Loan Note
To Engineer a solution to heavily discount the finance of student education.
This idea, came to us after meeting a client who had two children who wanted to put into private schooling. We then pointed out that with the amount of money he had, it would only last him around 50 months or just over four years. We mentioned what would he do for the remaining 10 years of financing his children’s education that was needed.
It was then that we realised the potential solution we could provide to him. We then got in touch with one of our clients who is an immigration lawyer and he mentioned that he facilitates students coming from overseas into the university education system in the UK. Using the same philosophy which we had with our previous client, we mentioned to the lawyer that we have a solution for them. Our Aforementioned Father with two children has now become a client and has been in the program for coming up to a year and is very satisfied with his returns.
Test Case:
The students parents are generally high net worth individuals whose children are looking for higher education in the UK namely “University”. Over the timeline for a degree, which is normally 3 to 4 years, the parents will be looking at a cost of approximately £150,000-£200,000. With the loan note structure, the parent simply loans the required amount to the HW/HJM company loan notes. The said amount will return a figure which will contribute to the facilitation of the students accommodation, overheads, dayto-day living, and general costs.
At the end of the term, the client has their original capital returned, resulting in their child obtaining their education and all other associated costs at a discounted rate. This is a win-win situation for the students parents, the relevant university, and more importantly, the students themselves.
The Terms:
Loan Length: Twelve Months
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Interest Paid | 2 Options:
2% per month on initial loan of £50,000-£100,000;
2.5% per month on initial loan of £105,000 and above.
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Minimum Lend: £50,000
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Frequency of Payments: Quarterly
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The Process:
Step One: Client engages with a member of the team to meet and discuss requirements.
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Step Two: Once client goals are discussed, sign up paperwork is issued specific for the client.
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Step Three: Once paperwork and client ID is filed, a loan agreement is submitted.
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Step Four: Loan agreement is completed and client funds into Limited company account.
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