Glossary
Plain-language guide to what we say.
Structured finance uses terms that sound scarier than they are. If any phrase on our site is unfamiliar, it's probably here. If it isn't, email hello@altfundsglobal.com and we'll add it.
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Accredited investor
- A person or company that meets certain income or net-worth thresholds set by securities regulators. In the US, the threshold is roughly $1M net worth (excluding primary residence) or $200K annual income. In Canada and most of Europe, similar rules apply. If your bank has ever offered you private-placement investments, you're probably accredited.
Asset-backed lending
- A loan secured against a specific asset — real estate, equipment, inventory, or a contract. If you don't pay back the loan, the lender can claim the asset. That's why asset-backed loans cost less than unsecured loans.
Bank Comfort Letter (BCL)
- A document from a bank confirming that you have a specific amount of money in your account, available for a specific purpose. Used to show a counterparty you can afford a deal before you commit. Not the same as a loan — it's just proof of existing funds.
Closing stage
- The point in a deal when both sides have signed a term sheet, both sets of lawyers are engaged, and documents are being exchanged under an NDA. It's the stage right before money moves. When we say we share registry documents 'only at closing,' we mean: after you've signed the NDA and engaged counsel, during the documentation exchange that happens before the wire goes out.
Due diligence
- The research a buyer, lender, or investor does before committing to a deal — checking your financials, legal structure, contracts, and background. Both sides do it: we investigate you; you should investigate us. This is what our /verify page is for.
Escrow
- A law firm or trust company that holds money on behalf of two parties until a specific condition is met. Nobody can touch the money early. Used in every AFG deal. It's the reason we never hold your funds directly.
KYC / AML
- Know Your Client and Anti-Money-Laundering. Standard compliance checks every regulated financial firm has to run. You'll be asked for ID, proof of address, and source of funds. Takes 1–2 days. It protects everyone.
Non-Disclosure Agreement (NDA)
- A contract where both sides agree to keep shared information confidential. Signed before we share anything sensitive about each other.
Non-Circumvent Agreement (NCA)
- A contract that prevents one party from going around another after an introduction. If a broker introduces a client to us under an NCA, the broker's fee is protected even if the client later contacts us directly.
Private Placement
- A capital raise done privately — between a company and qualified investors — rather than publicly. Cheaper and faster than an IPO, but restricted to accredited investors.
Proof of Funds (POF)
- Documentation that shows you have the money to complete a deal. Usually a Bank Comfort Letter paired with an Authorization to Verify. Not the same as a loan approval.
Qualified transaction
- A deal that meets our engagement criteria — capital need above a certain threshold, real operator, real asset or contract, complete KYC, willingness to engage third-party escrow. We use the phrase to distinguish real deals from tire-kickers.
SBLC (Standby Letter of Credit)
- A guarantee from a bank that it will pay a third party if you fail to meet an obligation. Used in international trade, real estate, and project finance. Legitimate SBLCs are expensive and tightly regulated. Many 'SBLC programs' sold online are scams.
Term sheet
- A written summary of the key terms of a deal — amount, rate, timeline, conditions — before the final legal documents are drafted. A signed term sheet means both sides have agreed the deal is going to close.
UBO (Ultimate Beneficial Owner)
- The real human being who ultimately owns or controls a company. Required disclosure for regulated transactions. Prevents shell-company money laundering. If a deal doesn't ask about UBO, something is wrong.
Missing a term?
Email hello@altfundsglobal.com with the phrase. We'll add it.
If you're working through a deal and want a specific read on where you are today, book a 45-minute strategy call.