How do so many people claiming they are urgently seeking capital (for months even years) but also often claim they don’t have the slightest idea what “Skin in Game” is? These people often claim they have previous experience in (a) getting approved for several rounds of funding spanning years… plus achieve a net profit after deducting all (b) operational expenses, (c) paying off combined costs of capital debt factoring + principal + interest and (d) Various city + state + federal + Corporate + capital gains taxes.
Those who have achieved ALL of (a), (b), (c), and (d) above should not have to be advised what a “recapitalization rate” is and what rate average is acceptable by most for-profit professional; (1) ABL funders, (2) debt capital lenders and (3) equity securities investors.
The same above borrowers also often claim they cannot name one type of capital from the other or how MeetingFundingApprovalCriteria.com often differs considerably. The result is they are often UNprepared to prove how they readily qualify today for each type. Remember; an amount of capital is not a TYPE of capital.
For clarity, “Skin in Game” is the borrower having their own “Vested interest” in project requesting funding. The first example is having personal Cash reserves / down payment / or bank account statement POF’S; preferably totaling 20% LTV of funding. Professional investors DO care about borrower having a verified “vested interest” in project.
If borrower has NO vested interest in project to leverage capital packaging and mitigate risk; then what investment is there? Recapitalization results when borrowers have years of recurring net profit documented by P&L statements (and other supporting documentation); who then roll-over some of their previous profit-margins into a savings sum of 20% LTV.
Borrowers proof of”Skin in Game” also consists of current revenues which is monetizable with Revenue-based Financing (RBF) , and potential future sales in the form of (P/O’s) or purchase orders / pre-sales / or accounts receivable (A/R’s). / Skin in Game can also be collateral such as; Monetizable personal hard assets including pools of Bitcoin (BTC) currency / Monetizable business assets can include inventory / or equipment including; office equipment / rental equipment / fleet vehicles, / or industrial heavy equipment.
Mining of oil, gas, & precious metals commodities annual “forward-sales” contracts offer from $100M interest-free Lines of Credit (LC’s) (to 5 years) and are considered “Skin in Game”. Buying debt collateral (POF’s) enhancement letters are “Skin in Game” that leverage approval for major project construction or acquisition (M&A) real estate financing. Construction project finance and construction supply-chain financing can be used together.
Revenues of Income-producing commercial real estate is “Skin in Game” collateral for leveraging lower down payments with higher LTV’s… or the option of bridge R/E equity capital on an interest-only payment basis (close in 2 weeks). Real estate mortgages / REIT’s / or notes you own clear are “Skin in Game” to include; Distressed asset pools that you already own clear such as NPN’s or REO’s.
POF’s letters are NOT directly monetizable like buying monetizable financial instruments including; SBLC’s, BG’s, MTN’s or surety bonds. Buying institutional high-yield to $200M surety bonds are monetizable for major project finance. Such bonds are guaranteed with either full collateral / or an irrevocable Letter of Credit (ILOC). They should not be confused with buying insurance policies like film completion bonds.
Monetizable Government vendor contracts offer typically high funding over 90% LTV’s / US Government tax credits include state film tax credits / and federal tax credits are available to 20% LTV angel investors that includes an 80% LTV federal funding program for business ventures that create “sustainable” job development.
Other US government grants / equity / & Gap funding guarantees (typically 35% LTV) include options like; Infrastructure construction surety bonds / export working capital / VA Home loans / Alternative Energy development / Rural & agriculture development / and Defense tech commercialization equity J/V.
Nearly $250,000,000 in a (P-3) public / private investment partnership offering 2 to 1 matching funds program is coming to the State of Nevada. This program will meet the daily growth funding stage demand of businesses needing $10M to $20M. Unlike commercial banks and institutional P/E firms requiring both proven product or service / and track record of cash flow; …venture capital (VC) funds go after projects that haven’t generated any revenue / or are early-stage firms poised for rapid global expansion.
(7) Types of equity that automatically require (time & labor consuming) multi-media marketing awareness campaigns that “enhance branding valuation” to attract far-reaching & wide-spread interest from international capital markets. A few types include; debt to equity conversion debentures (bonds) / (EB-5) foreign investors / Self-Directed Equity 401K IRA owners / 100% non-recourse finance with 144A Bonds that do NOT require credit checks, personal guarantees or asset verification / tax-deferred & monetizable Employee Share-Ownership Pensions (ESOP’s) / Non-tradable PPM’s / Tradable public stock known as “Do it Yourself” (DPO’s) or Direct Public Offerings… do NOT require selling to accredited investors.
Patents and other IP / intellectual property are “Skin in Game”. Public stock has a tradable market valuation (verified in minutes) and therefor is “Skin in Game”. Bulk public stock buyers are readily available but public stock non-recourse loans offer a faster funding approval that is cheaper then typically expensive equity. Equity profit-margin ROI of revenues average 25% nationwide / or typically double the ROI rate of asset-based funding or debt capital.
Controlling ownership ROI required by many equity securities investors can be up to 51% of venture. Revenue-stream(s) / and Controlling -ownership ROI rates combined do NOT include the addition of potential “deferred” and “participating” clauses that professional inventors may add to the funding approval term sheet.
These clauses, if “triggered” by the COMPOUNDING OF VALUATION of venture, can instantly increase investors revenue / ownership ROI binding requirements onto borrower (potentially up to 70%). Events that may “trigger” the “enhancing / & compounding valuation” of venture / or assets can be caused by selling the venture / or going public. (instantly compounding valuation 6x)
Remember; equity = securities (stocks and/or bonds) You must have securities to legally sell equity. Otherwise you are selling AIR. The SEC calls it securities fraud. Professional investors know this.
The vital importance of “enhancing / compounding valuation” attracts capital markets like a magnet; which explains why billion-dollar valuation businesses called UNICORNS have formed weekly for the last 3 years. The combination of multi-media marketing / branding / communications creating the “Enhancement of Valuations” of assets or ventures is the core-task of all IR media firms in 32 NIRI.org chapters nationwide.
Advertising / Marketing costs can comprise 20% of any companies annual total operating budget. 70% of Fortune 500 firms recognize and take advantage of structured trade finance. Funding advertising is not always viable though typical banks. Also known as Advertising can include TV / internet / radio / billboard / magazine / and newspaper. Also known as bartered media equity; such funders will accept even PPM shares for trade. A good alternative for NO out of pocket expense funding of 20% of typical annual budgets.
So, what is NOT “Skin in Same?
Concepts / sweat equity / amount of years / a great idea / No credit / having social security as primary income / repossessions / bankruptcy / child support payments / selling stock that doesn’t exist / safe keeping paper receipts like SKR’s but no hard asset / mining claim appraisals that can’t be found / heavy equipment & office equipment appraisals that can’t be found. Also add POF’s collateral letters that never appear. Money for nothing requests to buy $500M bank guarantees with NO money.
Prospects telling us abstract concepts of what / how much / & when they will pay us predicated on what they may or may not do / The Irony of prospects who assume “success fees” are the only applicable compensation for a transaction they FAIL to “succeed” in getting approved for 95% of the time / Prospects asking for MICRO-funding requests that cost more to do the work then any hope of earning
Prospects oblivious of what nationwide prevailing financial industry fees and costs are in the 21st Century. Like the fact that nationwide most financial advisors / analysts / IR media firms / asset managers / management consultants / event keynote speakers / most work nationwide on a base-pay of salary and/or in addition to flat or monthly PR rates / annual asset management fees / event speaking fees / and profit-margin bonuses to name a few.
Prospects blindly asking for a list of non-broker and multi-faceted CRM tasks expecting 1 person to do the work of entire staff of 50 spanning a year with no contract and no pay / and of course the comedians admitting to submitting INTAKE FORMS with disconnected phone numbers, etc, etc. The list is endless.
Borrowers with a track-record of being approved for funding and have achieved net profit to apply to recapitalization and are readily capable of anticipating all MeetingFundingApprovalCriteria.com; do not have to be told the obvious about the importance of having readily verifiable “Skin in Game”.
Also, there is NO such thing as NO questions asked or NO approval criteria required 100% cash funding in 24 hours in a brown paper bag funding merely for the asking. And no one should have to be told that you that all nationwide FINSERVE providers serve contractual clients only if you expect customer service. And yet endless people assume otherwise weekly.
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if you are capable of MeetingFundingApprovalCriteria.com and you currently require comprehensive / and individualized IR support; then contact D&B listed, US Vet-owned IR media firm GLOBALCROSSROADSCAPITAL.COM HQ’ed in Las Vegas.
IR MEDIA COMMUNICATIONS firms are NOT a funder, lender, investor, buyer, seller, or free analyst, free financial advisor, or trader, PPP platform, or broker-dealer.
If you are seeking free Biz Dev strategy consultation / planning / and implementation of ATTRACTING various finance options / multi-media marketing / branding valuation enhancement, asset procurement & management, government relations for contracting / funding / & assets auctions, commercialization of technology, international trade and more…
Then proceed to READ THIS… and the CONTACT page link both located in the heading at the TOP of this COMPLEMENTARY CONSULTATION blog feed. 1st step to request being a contractual IR client is to fill out the short “preliminary assessment” INTAKE FORM found on our company website.