The company I am working with is seeking credit risk investors to invest in the company as guarantors on loans, LOC, etc. These investors/guarantors will receive a credit risk premium in return as ROI immediately upon funding. My question is how should management determine the credit risk/ROI compensation for this type of transaction for the company. Should we use our f/s ROI calculated or use a flat % of the investor guaranteed amount? Should the compensation about be paid over the loan term or paid in a lump sum? What is a fair payment about?
How to determine ROI investor compensation as a guarantor
- Thread starter Acct888
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