BROWN CAPITAL FUNDING INTERNATIONAL

Real Estate & Renewable Energy Investment Banking Since 1966

Good Faith Account Overview


"We believe that the core of a great project is a great management team"


This may seem an obvious statement, but we receive hundreds of applications every week for funding.   In order for projects that are most likely to succeed rise to the top, we have to use a filter.

There will always be challenges when a business starts up. Together we want to be with you, to help and support you through what’s ahead. In order to do so, we need to know that your supply chain understands your project and is committed to you all the way.

Brown Capital is able to fund 100% of your funding needs, at a low interest rate, sharing in the profits of your company, while leaving management, you, with 100% of the equity of your venture.

In return, we need to see that your management is able to show that your project is shovel ready, profitable and deserves our support. That is why we ask that you create a Good Faith Account by placing 25% of the loan amount requested into that account.

The requirements of the Good Faith Account are as follows:

  • The funds are not at risk at any point and can be withdrawn if there is non-performance of any of the contractual obligations of your funding by Brown Capital.
  • Borrower establishes a “single-purpose corporate entity”. Location of the entity is dependent upon the location of the Good Faith Account.  The principal of Brown Capital Funding International must be a non-equity officer of this entity.
  • The funds are placed into a separate business bank account in the name of the "single-purpose corporate entity" just for this transaction. The account is and remains fully under the control of the entity who has placed funds into it.
  • The owner of the funds is the ONLY signatory of the account.
  • The funds in the account must be visible to the officers of Brown Capital.
  • Additional requirements are necessary, depending on the location of the Good Faith Account.
  • All funding agreements are allowed a deferment of repayment of 13-37 months. Funds in the G.F.A. are required to be held in the account until repayment begins, as outlined in the loan documents.  Once loan payments begin, your Good Faith Account may be closed with no further lender requirements and may be used to pay down the loan amount.

There is no “catch”.


BCFI – Good Faith Account Deposit COMPARISON


A traditional commercial loan requires a down payment. Non-traditional BCFI lending requires a Good Faith Account Deposit. These two concepts serve the same purpose as they make the funding possible for the borrower and are similar but have significant differences that are benefits to the borrower and owner of the funds. This graph details the advantages of the BCFI Good Faith Account Deposit compared to a traditional commercial loan down payment.

Traditional Commercial Loan Down Payment

BCFI Good Faith Account Deposit

25-40% of the loan amount

25% of the loan amount

Ownership of the funds relinquished to the Bank

Simply deposited into a bank account with the owner of the funds as the SOLE signatory.  Ownership of the funds retained at all times.

No guarantee of being returned

Can be withdrawn by owner at any time

Significant interest rate and/or equity

Arrangement for interest and/or equity at the discretion of the borrower and the owner of the GFA Deposit Funds.

Undetermined amount of time before funds are returned

Exact term range - Minimum of 1 year, maximum of 3 years.

We at Brown Capital have NO ability to use, withdraw, put a lien on, or in any way have access to these funds. The funds remain the property of the owner that placed the funds into the account.

Please feel free to consult with legal counsel about any aspect of this account before proceeding.                                                       

Your Brown Capital representative will be happy to discuss with you about moving forward with funding for your venture.

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