Loan Fees: Loan fees are what you pay to the lender for making you the loan.
Security for the Loan: Loans are secured by Assurance Plans which the borrower pays at the time of applying for the loan; in stead of obtaining the loan by way of the good credit and collateral.
Assurance Plans: Are used to provide security for the loans in case of default; they protect the lender.
Overview: Security for the loan and then loan fees are 2 separate parts of the loan. Our loans as are for entertainment projects, which are short term, bridge type loans. Loans are now open to non-entertainment companies and individuals.
Borrowers have no collateral or credit. We do not require credit or collateral. So how is the loan secured. Loans are secured by the purchase of an Assurance Plan. These plans protect us from loss due to default, as a lot of entertainment projects and other ventures never get completed.
The borrower though, is not liable for a default, they cannot claim any loss though. We collect on the Assurance Plan and sell the loss to profitable projects that need losses to offset their capital gains and profits.
So, who pays to secure the loans. We are not going to pay to secure a loan for a borrower, then loan them the money. It would be the same as buying a house and telling the lender to pay your down payment for you and give you a loan to purchase the property. Would you make a loan to someone without credit or collateral, no.
Specific answer: The borrower pays for the Assurance Plan at the time of completing the application once it is accepted; which takes less than an hour.