Standard reply in how “Closing Checklists” differ based on what type of capital

“Closing Checklist” checks refers to all the documents an applicant seeking to meet funding approval criteria must already have to accelerate approval.
As an internet-based firm our website pre-anticipates 90% of most questions anyone would have related to finance options or investor relations (IR) services.  For 5 years our TRADE SHOW FLOOR page has had at least (3) “Closing Checklists” that obviously differ somewhat based on what industry the funding request is pertaining to.  The 3 are;




The most generalized “Closing Checklist” that applies to all industries is this;

(1) Pro-forma
(2) Bios-Resumes on all Principals
(3) Brief executive summary (1 page)
(4) Use of funds/draw schedule
(5) Formal loan/equity proposal

(6) Financials of company /& all principals involved.
This includes collateral like (IP) intellectual property, purchase orders (PO’s), internal equity (known as “skin in game”) and current/projected earnings from diversified revenue streams.

The following sloppy financials discussed by film finance attorney John Cones are not a good example of viable financials;

For those with no “skin in game” and collateral might consider buying (POF’s) Proof of Funds collateralization instruments.  These can be used for most industries to include film and be approved in as little as 1 day.  Amounts usually range from $1.5M to $100M.  Here are a consolidated list of POF and other financial instrument providers;

Also, those with no “skin in game” or collateral might consider the following 100% funding or worldwide funding source.  Those who do so should recognize that this source uses;

(a)  Reinsurance to insure funding (by a subsidiary of Berkshire Hathaway)

(b) leverages capital by using financial instruments and pays for acquisition of financial instrument

(c) requires 10% equity in company in exchange for paying for financial instrument in addition to lending interest rates

Post of 100’s of funding program synopsis on our blogfeed are provided as a courtesy and not an expectation.  Terms of these funding sources may differ based on several variables.  Lenders may charge higher rates for overseas vs. US projects.  In the rare exception the rate or terms aren’t already explained in full on blogfeed then it is best to save your questions for the specific funds source your applying for upon being a client.

Here is the quote from source pertaining to the 2 types of funding mentioned just above;

Date: Tue, May 22, 2012 at 3:51 PM

“Jeff:  I don’t know what the term “closing checklist” is. My Provider issues an (MOU) Memorandum of Understanding and then when loan approved a Term Sheet is issued.  We don’t issue a Term Sheet until the loan is approved. 

 Jeff:  Just tell these people to call me for a 10 minute discussion.  I email no documents until I speak to your client that seeks funding. If they won’t cooperate in doing this then there is no negotiation on our procedures”.

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