Sierra Resource Group Inc. (fka SIRG)

[Warmy]

Think again. There is no way that SIRG will be able to secure a loan from any conventional corporate lender. They just don't meet the requirements. For SIRG to meet the requirements of conventional lending they will need a 5 year minimum of positive revenue history, a proven means of repaying the loan and a positive history of repayment of a similar loan type as the one they are trying to secure. SIRG has none of that and as such, no conventional lender would touch them.

The only chance they have is to find an AIG that is willing to give them a chance. That means that they will either have to use the property that they have as collateral or sell the property to the AIG and enter into a lease/purchase agreement. In either case, they will also have to give a portion of the company to the AIG until the contract is satisfied.

While AIG deals can work, they usually come at a high rate of return and can also mean the loss of the property if SIRG ever fails to deliver. AIGs don't care about non-liquid assets so they will seize and liquidate if their investment is in jeopardy. AIGs always include a safety exit clause to protect themselves.