Counterparties and Fees

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Full-service Project Financing
Counterparties & Fees

Definitions

Funding Request - means a funding application to Wealthbullet by the client to obtain financing via the
Funding Channels / Lenders / Investors; Wealthbullet has access to.

Client - means any company that approaches Wealthbullet with a Funding Request to raise funding for themselves.

Funding Channel - means any company that Wealthbullet works with in order to fulfil any Funding Request by using the Funding Channel’s panel of Lenders/Investors.

Lenders/Investors - means any source of funding introduced via Wealthbullet (WB) and or any of its Funding Channels that Wealthbullet deals with and then hopefully completes the Client's Funding Request.

Letter of Engagement & Indicative Terms - Letter of Engagement and Indicative terms (LOE & ITs) is an initial term sheet generated by the Funding Channel after discussing the Client's project with two or more potential Lenders/Investors.

Binding Written Offer Terms - The final legally binding written offer document produced, or any further versions of it, from any Lenders/Investors Wealthbullet has access to.

Initial Fee - The fee charged by Wealthbullet for obtaining LOE & ITs and payable by the client within 5 Business Days from the Execution of the (LOE & ITs).

Completion Fee - The fee charged by Wealthbullet on successful disbursement of funding to the Client through any of the Lenders/Investors that Wealthbullet has access to.

Offer Fee - This is a 'Breakup fee' charged by Wealthbullet for obtaining Binding Written Offer Terms should the Client decide not to proceed with the Binding Written Offer Terms.

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Wealthbullet Fees

Our fees are made up of up to four parts:

  • Initial Fee.
  • Completion Fee.
  • Walkway Fee, and
  • Warrants – these only apply to certain deals and will de detailed in our Fee Agreement where applicable.

Initial Fee

  • Wealthbullet charges an Initial Fee of between $25,000 and $50,000 (although these figures can vary).
  • The client acknowledges Wealthbullet fees by signing our fee agreement, which is based on the scope of work and complexity of the deal.
  • The Wealthbullet Initial Fee is only payable when: 
  • The client has seen, acknowledged and executed the initial indicative terms secured via our Funding Channels and backed up by Lenders/Investors (this document is called the LOE & ITs). 
  • If the client walks away at this point and does not sign the LoE & ITs then no fees are payable at all by the Company (unless arranged via any other document for separate work undertaken).
  • The client would have also had the opportunity to have spoken with the Funding Channel about the LoE & ITs before signing the LoE & ITs.

Completion Fee

Funding Amount (USD, GBP, Euros)

Completion fee (% of funding amount)

Up to 14,999,999

3.0 %

15,000,000 – 24,999,999

2.5 %

25,000,000 – 49,999,999

2.0 %

50,000,000 – 99,999,999

1.5 %

100,000,000 and over

1.0 %

  • The Completion Fee is based on the final Investment Amount as per the Binding Written Offer Terms. This applies to straight debt, equity, subordinated debt, convertible loan notes or any other structured  funding/product/equity financing.
  • This Completion Fee is payable at the same time as the Client draws down on any Investment Amount, in cleared funds, and is payable to an account notified in writing to the Client by Wealthbullet or any of its appointed representatives; the Completion Fee will be due and payable at the rate above for any Investment Amount drawn down by the Client where Wealthbullet and/or one of Wealthbullet's FCs have facilitated access to the Investors/Lenders providing the Investment Amount being drawn down.

Walkaway Fee

  • Wealthbullet charges a Walk Away Fee normally between USD $25,000 – $75,000 USD and is only payable if Wealthbullet facilitates obtaining for the Company full Binding Written Offer Terms that match the parameters within the LoE & ITs and the Company decides it does not wish to proceed and/or the Company fails to complete the deal post signing the Binding Written Offer Terms.
  • This fee is charged as otherwise it would mean that Wealthbullet, the Funding Channel and the Lender/Investor would have wasted considerable time and efforts obtaining Binding Written Offer Terms that the Company does not then take up or fails to execute; this also causes Wealthbullet relationship issues with all parties concerned etc.
  • Effectively it can be considered a break-up fee, and if Wealthbullet does obtain Binding Written Offer Terms as outlined above and the Company proceeds with completing them then this Walk Away Fee would never be payable.

Warrants Fee

  • There are occasions where Wealthbullet will charge 4%-10% Warrants – details of these would be explained in full in Wealthbullet’s Fee Agreement letter when they are applicable.

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Funding Channel Fees

Funding channel fees are made up of up to four parts:

  • Contribution Fee.
  • Completion Fee.
  • Offer Fee (effectively having the same meaning as the Wealthbullet Walk Away Fee) but the Company should read the Funding Channel’s actual LoE & ITs for full contractual details.
  • Warrants – these only apply to certain deals and will de detailed in the LoE & ITs where applicable.

Contribution Fee

  • The Funding Channel typically charges a Contribution Fee of min.  GBP £8,995 to £14,995 – it depends on complexity of the case, jurisdiction and other factors. It is normally nearer GBP £10,000. V.A.T. is chargeable if the Company is UK based as per UK tax laws.
  • On rare occasions this can be higher.
  • It is called a Contribution Fee as the Funding Channel must prepare credit reports and other third-party reports (not to mention paying for their analysts, offices etc).

Completion Fee

  • The funding channel charges a completion fee of 2% of the Investment Amount.
  • The Completion Fee is based on the final Investment Amount as per the Binding Written Offer Terms. This applies to straight debt, equity, subordinated debt, convertible loan notes or any other structured funding/product/equity financing.
  • This Completion Fee is payable at the same time as the Company draws down on any Investment Amount, in cleared funds, and is payable to an account notified in writing to the Company by the Funding Channel or any of its appointed representatives; the Completion Fee will be due and payable at the rate above for any Investment Amount drawn down by the Company where the Funding Channel has facilitated access to the Investors/Lenders providing the Investment Amount being drawn down.

Offer Fee

  • The Funding Channel charges an Offer Fee normally between £25,000 – £75,000 USD and is only payable if it facilitates obtaining for the Company full Binding Written Offer Terms that match the parameters within the Indicative Terms and the Company decides they do not wish to proceed and/or fails to complete post signing of the Binding Written Offer Terms.
  • This would mean the Funding Channel and several other parties would have wasted considerable time and efforts obtaining terms that are not taken up; it also causes relationship issues with Lenders/Investors etc.
  • Effectively it can be considered a break-up fee, and if the Funding Channel does obtain Binding Written Offer Terms as outlined above and the Company proceeds with completing them then this Offer Fee would never be payable.

Warrants Fee

  • There are occasions where the Funding Channel will charge 2%-5% warrants – details of these would be explained in its LoE & ITs document.

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Lenders/Investors Fees

Completion Fee

  • The Lenders/Investors typically charge a completion fee of 1 to 2% of the Investment Amount The actual amount will be detailed in the Binding Written Offer Terms.
  • This fee depends on the choice of Lenders/Investors chosen to fund the project.
  •  This fee is typically deducted from the Investment Amount at source or sometimes can be added to it.
  • Legals and any further DD fees required – again detailed in the Binding Written Offer Terms. It will not be possible to state these as exact figures before full due diligence has been completed as this due diligence will predicate the level of fees needed based on the remaining scope of work and complexity of the legals that the Lenders/Investors need to perform.

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