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Limen Capital · Joint Venture Collateral
Limen Capital · Joint Venture Collateral

Not enough collateral to qualify?
We become it.

For developers and project owners with a strong project, but not enough liquid capital or assets to qualify for traditional financing. Limen Markets becomes your joint venture partner, underwrites the project, and posts a Standby Letter of Credit your lender can draw against if you default.

HOW IT WORKS

We don't lend you money. We become your collateral.

A joint venture collateral facility replaces the equity or assets you don't have with a bank-grade guarantee your lender can rely on.

01

We underwrite your project

Full review of the deal, the sponsor, and the industry against our qualification criteria.

02

We become your JV partner

Limen Markets enters the project as a joint venture partner and issues collateral — a Standby Letter of Credit from a top-rated bank, sized to your project.

03

Your lender draws against it if needed

If you default on your obligations, your lender draws on the SBLC — not your project.

04

Optional: we arrange the loan

For an added fee, Limen Markets will also arrange for the loan to be funded through one of our affiliated banks, trusts, or financial groups.

A Standby Letter of Credit is a bank's unconditional promise to pay — not a loan, and not equity. Your lender isn't relying on your balance sheet. They're relying on the bank standing behind it.
QUALIFICATIONS

Who this is built for.

Joint Venture Collateral is underwritten, not automated. Here's what we look for — and what disqualifies a project outright.

Who qualifies

  • No major bankruptcies in the last 5 years
  • Projects in real estate, infrastructure, or tourism
  • Borrowers with liquid capital available to service the debt

Who doesn't qualify

  • Borrowers without any liquid financial capacity
  • Borrowers attempting to finance 100%+ of the development cost
COST

A 6% collateral fee, paid in two parts.

The collateral fee is what it costs Limen Markets to issue and stand behind your Standby Letter of Credit.

3%
PAID INTO ESCROW

Funded into escrow, then released to Limen Markets upon loan closing.

3%
PAID WITHIN ONE YEAR

The remaining half of the collateral fee, paid to Limen Markets within one year.

Borrowing cost. Because the collateral is a Standby Letter of Credit from a top-rated bank, borrowing rates are typically low — traditionally comparable to rates on borrowing against a Treasury Bond.
A WORKED EXAMPLE

How the numbers play out on a mid-size project.

A hypothetical walkthrough to make the mechanics concrete. Illustrative only — every facility is individually underwritten, and actual terms depend on the project, sponsor, and lender.

The project
A sponsor is developing a mixed-use tourism resort and needs a lender to fund $60M of construction debt, but doesn't have $60M in liquid collateral to post against it.
Facility requested
$60M — within Limen Capital's $5M–$1B range for Joint Venture Collateral.
Collateral fee (6%)
$3,600,000 total, paid to Limen Markets in two installments.
At closing
3% — $1,800,000 — funded into escrow, released to Limen Markets when the loan closes.
Within one year
The remaining 3% — $1,800,000 — paid to Limen Markets within one year of closing.
Before contracts
A refundable $6,500 Contract Deposit, paid into escrow before Limen Markets issues a formal agreement.
Timeline
As fast as 10 days from acceptance to closing, once underwriting and documentation are complete.

This scenario is for illustration only and does not describe an actual client, transaction, or commitment. Facility size, fees, and timeline are indicative and subject to underwriting, documentation, and closing conditions for every project.

FACILITY SIZE
$5M to $1B
Start an Application
FAQ

Common questions.

What borrowers ask most before they apply.

What is a Standby Letter of Credit?

A Standby Letter of Credit (SBLC) is a bank's formal guarantee of payment, issued on your behalf. It sits behind your loan as a backstop: if you default, your lender draws on the SBLC instead of the underlying project. It's a well-established form of credit enhancement in project and infrastructure finance.

Is Joint Venture Collateral a loan from Limen Markets?

No. Limen Markets enters the project as a joint venture partner and posts collateral; we do not lend you money directly. Your financing comes from your own lender, backed by the collateral we provide. If you'd also like help arranging the loan itself, Limen Markets can do that for an added fee through one of our affiliated banks, trusts, or financial groups.

Do I have to place the issuance cost into escrow?

Yes. Issuing collateral costs Limen Markets capital. In the event that a borrower does not move forward with a loan, or is disqualified for fraud or other reasons, Limen Markets must be able to collect the fee.

Do you charge anything up front?

No upfront fees. If your application is accepted, we charge a refundable $6,500 Contract Deposit fee. This is paid into escrow before we issue a formal agreement for a collateral loan. This is to stop potential borrowers from shopping our agreements to third-party investors in an attempt to raise funds. Once we issue contracts, borrowers are obligated to fund escrow for the collateral issuance amount.

Can I choose the escrow firm?

Borrowers can elect to choose a third-party, neutral escrow firm; however, we strongly recommend that borrowers utilize one of the escrow firms that Limen Markets has a history with, and that is well versed in these types of transactions.

GET STARTED

Bring us your project.

Tell us about the deal, the sponsor, and where the gap is. A member of our capital team will walk through fit before anything is filed. Not the right fit? See every program on the Limen Capital overview.

Facility size$5M – $1B
Collateral fee6%
Contract deposit$6,500 (refundable)
Typical closeAs fast as 10 days
Emailhello@limenmarkets.com
Phone(954) 466-4434

Limen Capital is a division of Limen Markets. Limen Markets is registered as a money services business in the State of Wyoming and is an SEC-registered firm. Joint Venture Collateral is a structured financing arrangement, not a securities offering, a loan, or a deposit product. Nothing on this page is a commitment to underwrite, issue collateral, or arrange financing — all facilities are subject to underwriting, documentation, and closing conditions, and the fees, structure, and terms described here are indicative until issued in a formal agreement.