Basically, an Arbitrage Loan, looks like this: All of the above actions take place SIMULTANEOUSLY at the closing of the loan, which is arranged by the " Escrow or law firm " for the Boutique Investment Banker who put the deal together.
The boutique investment banker is the most important piece of the puzzle.
It gives the bank what it need to feel comfortable with the transaction.
Some procedures must be respected and you have to know what to do and how.
To give you an idea of how an arbitrage loan is made here is an example.
What self-liquidating loans are (these are also sometimes called "Arbitrage Loans") is best explained by how they purportedly work.
Well, if it doesn't work and nobody's going to give you any money, how do the promoters make any money -- after all, their not getting their commissions either, right? If you've been keeping your eye on the promoter's commissions you've already been suckered, because that's not the point of this particular exercise.
In fact you don't need to invest a dollar of your own money.