Funding Comparison Analysis

Traditional Bank Financing vs. BG Monetization Through Abu Dhabi Sovereign Funds

Traditional Bank Financing

Conventional loans, credit facilities, and development finance with extensive requirements

BG Monetization

Sovereign fund liquidity through bank guarantee purchase - faster and simpler

VS
📋

Requirements & Eligibility

Collateral Requirements
125-150%

Over-collateralization standard

  • Hard assets required
  • Personal guarantees needed
  • Cross-collateralization common
  • Complex security structures
0-50%

Minimal security requirements

  • BG itself serves as security
  • Cash-backed option available
  • No personal guarantees
  • Simple structure
Credit History Requirements

Strict Requirements

  • 3+ years financial history
  • Proven cash flow essential
  • Perfect credit score needed
  • Detailed historical analysis

Project-Based Evaluation

  • Focus on project viability
  • Bank rating more important
  • New companies eligible
  • Future potential valued
Minimum Transaction Size
$1M+

Various sizes but complex for large projects

$100M+

Large projects only (aggregation available)

⏱️

Process & Timeline

Total Duration
3-12 Months

Extended due to committees and bureaucracy

30-60 Days

Streamlined with clear milestones

Documentation Requirements

Extensive Package

  • 100+ pages typical
  • Multiple revisions common
  • 5-10 year projections
  • Exhaustive detail required

Focused Documents

  • Standard templates provided
  • Core documents only
  • Project viability focus
  • Efficient preparation
Approval Process

Multiple Layers

  • Branch level review
  • Regional approval
  • Head office committees
  • Board approval often required

Direct Path

  • Bank issues BG draft
  • Direct fund verification
  • Single approval point
  • Clear decision timeline
💰

Financial Terms

Funding Amount
60-70%

Of project value (LTV restrictions)

100%

Full project funding available

Cost Structure

Ongoing Costs

  • Interest: 8-15% annually
  • Processing fees: 1-3%
  • Hidden charges common
  • Compound interest burden

One-Time Fees

  • Success fee: 1-2%
  • No interest payments
  • All costs transparent
  • No hidden charges
Payment Terms

Rigid Structure

  • Monthly principal + interest
  • Penalties for late payment
  • Prepayment restrictions
  • Inflexible terms

Flexible Approach

  • Project-based repayment
  • Grace periods available
  • No prepayment penalties
  • Negotiable terms
📈

Detailed Process Timeline

Traditional Bank Financing

Initial Application Week 1-2

Submit extensive documentation

Initial Review Week 3-6

Branch assessment

Credit Analysis Week 7-12

Financial analysis

Committees Week 13-20

Multiple reviews

Documentation Week 21-24

Legal documents

Disbursement Week 25+

Partial funding

BG Monetization Process

Submission Day 1-3

Project summary

Pre-Qualify Day 4-7

Quick assessment

BG Draft Week 2-3

Bank prepares

Verification Week 4-5

Bank authentication

Agreement Week 6-7

Finalize terms

Funding Week 8

100% transferred

Why BG Monetization Wins for Large Development Projects

5x

Faster funding vs traditional banking

100%

Project funding without equity dilution

75%

Lower total cost over project lifetime