Pledge Angel
A Pledge Angel is similar to an Angel investor. A Pledge Angel is an affluent individual or company whom acts as the Guarantor for an entrepreneurs loan repayments provided the entrepreneur has secured their assets against the original loan. The loan being raise for the purpose of capital required for a business start-up, or expansion. The Pledge Angels commission comes in the usual form of a percentage in yearly profits and or usually ownership equity however lower than the level for example of an Angel Invester.
Unlike an Angel investor who will use their own money to back a business a Pledge Angel uses the strength of their own money and income to back a business thus enabling the business itself to meet mainstream lending criteria. Pledge Angels require that the entrepreneur can present property with equity or other high worth assets to safe guard their backing.
When a new or expanding business is unable to raise finance against positive equity in their own assets (normally property) because they do not meet high street lenders requirements a Pledge Angel uses their standing and reputation to guarantee any borrowings that the business undertakes. However the borrowings are still secured against the entrepreneur’s property thus the Pledge Angel takes on little risk unlike an Investment Angel whom is subject to a high risk
A prime example is when one owns their own property with no mortgage and has no borrowings and has not required credit for a period of time. They therefore may have a low credit score. Not because they owe money but simply because they do not owe money or in the past have not taken credit.
Credit Reference agencies like CallCredit, Equifax and Experian could report to a potential lender that the applicant has no credit history. Therefore in this example one could face difficulty obtaining finance or finance at competitive rates. A Pledge Angel would therefore stand as guarantor for the loan using the strength of their own money and income.
The Pledge Angel therefore guarantees the loan repayments. The Pledge Angel has parted with no monies. The Lender has actually funded the business and the entrepreneur so to speak has used their own assets to secure the Pledge Angels guarantee.
A Pledge Angel can therefore guarantee many loans simultaneously and collect percentages of many businesses simultaneously.
Pledge Angels also use the benefits of this system to get to know the entrepreneur before possibly investing in the entrepreneurs business as a full Angel Investor at a later stage
The Pledge Angels system is attractive to existing profit making companies seeking to expand their investment portfolios with little risk.
The name and system Pledge Angel was created and first used by Mr C Barrell an Englishman living in France whom developed the system to overcome stringent archaic French Lending Laws.
Unlike an Angel investor who will use their own money to back a business a Pledge Angel uses the strength of their own money and income to back a business thus enabling the business itself to meet mainstream lending criteria. Pledge Angels require that the entrepreneur can present property with equity or other high worth assets to safe guard their backing.
When a new or expanding business is unable to raise finance against positive equity in their own assets (normally property) because they do not meet high street lenders requirements a Pledge Angel uses their standing and reputation to guarantee any borrowings that the business undertakes. However the borrowings are still secured against the entrepreneur’s property thus the Pledge Angel takes on little risk unlike an Investment Angel whom is subject to a high risk
A prime example is when one owns their own property with no mortgage and has no borrowings and has not required credit for a period of time. They therefore may have a low credit score. Not because they owe money but simply because they do not owe money or in the past have not taken credit.
Credit Reference agencies like CallCredit, Equifax and Experian could report to a potential lender that the applicant has no credit history. Therefore in this example one could face difficulty obtaining finance or finance at competitive rates. A Pledge Angel would therefore stand as guarantor for the loan using the strength of their own money and income.
The Pledge Angel therefore guarantees the loan repayments. The Pledge Angel has parted with no monies. The Lender has actually funded the business and the entrepreneur so to speak has used their own assets to secure the Pledge Angels guarantee.
A Pledge Angel can therefore guarantee many loans simultaneously and collect percentages of many businesses simultaneously.
Pledge Angels also use the benefits of this system to get to know the entrepreneur before possibly investing in the entrepreneurs business as a full Angel Investor at a later stage
The Pledge Angels system is attractive to existing profit making companies seeking to expand their investment portfolios with little risk.
The name and system Pledge Angel was created and first used by Mr C Barrell an Englishman living in France whom developed the system to overcome stringent archaic French Lending Laws.
Comments