Every day I meet Clients, who have been running from Pillar to Post, looking for Funding. During their run, they have met 100′s of Brokers and Fly by Night operators, who claim that they can raise funds for them, out of thin air. I wish life was so easy. One has to understand that, money has to come from somewhere … there is no Tree on which money grows.
Anyway, getting down to some basics, there are some Real ways to raise funding for your Project.
One of the basic and most traditional way is to get Funding from a Bank or Lender or Investor. Every Lender or Investor, would want 2 basic things from any Investment or Project, Security of his Funds anlined Return on Investment. You have to make sure, your Project, offers these 2 things to the Lender or Investor.
Most Banks or Lender these days, want some sort of Collateral, as security for their Investment. Collateral could be in terms of some Asset, which you have to offer, or else, one can offer some Bank Instrument, as a Collateral. Now, this is where most Brokers, offer Magical solutions, which don’t work in Real Life. Brokers say they can get you a Bank Instrument on Lease, and get you Funding against it. This is not Real. The owner of the Bank Instrument, would not allow you to raise funds against the Instrument, with he being at risk, to pay what you have raised against the Instrument, in case you fail to pay. Whenever you take an Instrument on Lease, one of the main documents, which the Lessor makes you sign is an Indemnity, what you would not raise funds against the Bank Instrument. If you are still using the Instrument to raise funds, you are doing a Fraud, and I am sure, no Real client wants to do a Fraud or a Scam. Yes, you can use a 3rd Party collateral, to raise funds, if the collateral provider is aware of the transaction, and he is a Joint Venture partner, and he knows, you are using the Instrument to raise funds, for a project, in which he is a partner.
The other alternative to arrange a Bank Instrument is to procure or Buy a Bank Instrument, which is also where Brokers, offer unrealistic deals. There are no Real bank Instruments from AAA Rated or Top Rated Banks available below 80% or so, and it does not make sense Buying an Instrument at 80% or so, to get Funding against the same, because a Bank would also not pay you more than 80% or so against the Instrument. There are however, some Real Instruments, which may not be from Top rated Banks, which are available at lower rates, which can be procured and used to raise Funding, or provided to Bank as Collateral against Funding being provided by the Bank.
So, if you have a Bank, which is ready to provide you a Loan, and wants you to provide a Bank Instrument, do contact us, and we can match you up with another client, some like you, who may have an Instrument, from a Bank, which he wants to Discount, or against which he wants Funding. So, by taking his Instrument, and providing it your Bank, you can activate your Line of Credit or Loan, pay the Instrument owner, and keep the Balance for your Project.
Alternatively, if you have an Instrument, which you want to Discount or want to raise Funding against, contact us, and we will match you with a client, who has a Bank, which is ready to provide him a Loan, against his project, but wants a Collateral. Your Instrument can be provided as a Collateral to the Bank, and one can get money from the Bank, you can get what you want.
Incase, you don’t have a Bank ready to fund your Project, nor do you have any Bank Instrument, and you think your project is Real, and offers Security and RoI, to the Investor, contact us, and we may be able to do a Bond issue for your project. We have Clients, who have Line of Credits from Bank, as explained above, and they can use these Bonds, to activate their Line of Credit, or get Loan for their projects, by offering these Bonds as Collateral to their Bank. This way, you would get the Funding, which you require by doing a Bond issue, and selling your Bonds, to people who want such Bonds.
So, to sum it all, I think it is High time, we all get together, and make some real deals happen, and stop chasing lame ducks, and stop wasting time on miracle deals, which don’t happen.
Look forward to some real projects, and some real business in 2012.
Contact us if you are serious and not curious