The ‘Rich Uncle’ Strategy

You have a viable project—a real estate development, infrastructure build, or business expansion—that requires financing of $1 million to $2 billion. The business plan is solid. The numbers work. But the bank hesitates. Their liquidity is tight, their risk appetite is low, or your deal is simply outside their comfort zone.

They might eventually say “yes,” but the terms are punishing: high interest rates, demanding covenants, and insufficient capital. Or they might just say “no.”

This is where traditional financing hits a wall—and where creative capital solutions create a door.

The Courtesy Deposit Mechanism: A Win-Win-Win

The “Rent a Rich Uncle” program operates on a simple but powerful principle: when a financial institution receives a substantial deposit (that is NOT used as collateral), its liquidity position improves dramatically. This enhanced liquidity gives them the confidence and capacity to extend more favorable loan terms.

Here’s the breakdown:

1. For the Bank: They receive a large, stable deposit that strengthens their balance sheet without increasing their risk exposure (since it’s not collateralized).
2. For the Borrower: You receive significantly better loan terms—lower interest rates, longer durations, and fewer covenants—because the bank perceives the transaction as lower risk.
3. For the “Rich Uncle”: Our financial partners earn a fee for providing the deposit that facilitates the transaction.

The Critical Distinction: Deposit vs. Collateral

This is the most crucial concept to understand: the Courtesy Deposits are never held as collateral. They remain the property of our financial partners. The bank cannot seize them if the loan defaults. This is what makes the strategy so powerful—it improves the bank’s liquidity position without increasing its risk profile.

The bank is essentially saying: “We’re more comfortable giving you this large loan on favorable terms because we now have extra cash on our books that makes us stronger.”

The Qualification and Process

This program serves projects requiring funding of $1 million to $2 billion. To qualify, you need:

• A solid business plan and relevant experience
• A financial institution willing to participate under these terms
• Unencumbered assets for the bank to secure against (separate from the deposits)

The process involves identifying a participating bank, verifying that it won’t hold deposits as collateral, and executing the agreement. The timeline is typically 30 banking days from signed contracts, and once we have verified that the bank will not hold the CDs as collateral.

When traditional financing can’t meet your needs, the solution isn’t to accept worse terms—it’s to change the financial landscape of the deal itself.

👉 Want tailored guidance? Schedule your strategy call now.