(* This page is link #4 on the FOUR FEE OPTIONS page on the left column of the homepage for http://www.Globalcrossroadscapital.com)
DEFINITION OF A CLIENT:
“Party who requests our help and authorizes us to rep them in writing on their company letterhead (2 if other than sole-proprietor) Party must be principal of company and/or owners of asset(s) and state so on contract.
Authorization must specify which of our 21 client service options (listed on WHAT WE DO page) are being requested as non-brokering service fees do not apply as a commission task. Written authorization must include approval for lender, investor, or monetizer to pay GCC directly from proceeds if and when brokering services apply and/or client can pay via bank check or bankwire directly to company account at US Bank.
Lehman Formula Commission is separate from A/V services and other optional non-broker service fees and disclosed further on PT. 4 of our DUE DILIGENCE BLOG & WHAT WE DO page, as well as on both… http://emailwire.com and http://free-press-release.com
By sake of hiring us for brokering services; every contractual client who agrees to paying us referral fee commission agree to the following Lehman Formula Chart below.
Lehman Formula is proportionate to amount of funds raised or valuation of assets secured or cost containment achieved. The higher the amount raised or valuation is the lower the commission. The lower the amount raised or valuation is the higher the commission.
Lehman Formula is an internationally recognized commission structure founded by the Lehman Bros. Investment Bank. While flat rate commission works for brokers of home mortgages; it doesn’t for VC related deals and it presents a disproportionate debt-load to an otherwise ready to be approved funding proposal.
Our least break even operational cost NOT including federal business taxes is $25K per month per client. So it is impractical to accept funding requests reliant on the success of client meeting approval criteria to get paid less then the cost of doing business. With that in mind our (PER transaction) commission rate for ABL requests closing within a month is simplified as follows;
OVER $250,000 is 10%
OVER $10,000,000 is 5%
OVER $100,000,000 is 1%
Should prospects want to “debate” if that is too expensive can always opt for fee option #4 on a flat and “deferred-payment” basis O.A.C. (regardless of number of transactions) that has been publicly disclosed since the summer of 2015 on company website, blogfeed and atop my linkedin profile.
OPTIONAL BRANDING/DISCLOSURE FEE:
Our firm’s policy adheres to client confidentiality unless written permission is given to publicly announce client’s name upon completion of transaction. At the same time, we also recognize the negative loss of branding incurred revenue if client should exercise their prerogative for confidentiality.
Therefor, we charge an additional >1/2 of one< percent on top of the sliding scale referral rates posted above unless client gives us written permission for public disclosure of transaction completion. This can include clients own recommendation on my Linkedin profile. Additionally, film producers must provide credit on imdb and onscreen credit to waive this optional fee.
PAY ORDERS & RECURRING CLAUSES:
Referral or success fees payment contract agreement must also be secured with an Irrevocable conditional bank pay order (ICBPO) sent by >bank wire transfer< to our company account at US BANK or can be sent by bank check via FEDEX overnight to our corporate address found on our CONTACT page.
Yes, these referral fees are on a PER transaction basis AND a 3 year written “recurring clause” is agreed by client to be in effect to anticipate future revolving tranches from same funding sources.
COLLECTION, LEGAL, & TERMINATION FEES (effective 6/14)
(IF applicable) By sake of hiring us, contractual client consents to pay ALL interest, collection, and legal costs in the event of non-payment of referral fees or other applicable production costs due. (even if not noted on individual contract)
Client also consents to paying Termination Fees which apply when client through their own fault fails to complete due diligence. Termination fees are a flat rate of $20,000 per week(*) commencing from start of representation until collection. (even if not noted on individual contract)
(* compared to national news of Termination Fees as of 2014 which are 1.6% of transactional value for the 1st month and 3.2% from 2nd month. Enter “termination fee” as a keyword in this blogfeed’s search bar to confirm)
PROOF OF FUNDS/ownership:
All asset-based acquisition requests must have proof of funds (POF) accompany the client contract. All monetization of asset requests must prove ownership/validity of asset. This includes CUSIP/ISINs. No exceptions allowed.
OPTIONAL ANCILLARY/A LA CARTE non-brokering service fees:
Referral fee or construed “success-fees” are separate from ancillary service fees associated with all US investment bankers or IR media firms. Such services are detailed starting with the WHAT WE DO & charge pages on company website. This includes but not limited to advisory/analysis/IR media campaign support. Such fees have several determining factors and can be on a case-by-case basis.
INDUSTRY RATE COMPARISON:
No surprise that national investment banking firms do charge up to 10-15% of transactional value and NOT all on back end. US Telemarketing firms do NOT work solely on commission (% + hourly per # of CRM’s X campaign months) unless they are a “boiler room” and then the commission is from 50% of funds raised.
GLOBALCROSSROADSCAPITAL.COM is a US-Vet-owned, SBA-certified, DUNS-listed IR media communications firm & government vendor based in Las Vegas and listed on http://SAM.gov. If you wish to be a client proceed to the CONTACT page at the top of this blogfeed and follow the instructions.