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Terminology that you must anticipate to answer that professional (real) funders, lenders, & investors will ask

Date:

Those who do not understand the terminology or cannot quickly answer questions by funders, lenders, & investors will show your lack of preparation for https://www.MeetingfundingApprovalcriteria.com.

The following is a shortlist of the terminology so you can plan accordingly;

(1) Use of funds – Self-explanatory

(2) “Skin in the game” – This does not mean your idea or sweat equity labor.  It means what collateral, monetizable assets, or revenue do you possess/own today.  Or doc rights to future revenue streams.

It’s amazing how many can’t answer this make-or-break question.

(3) Payment schedule – IF this option is given to the borrower – when is the first re-payment to commence? Is a grace period offered?

(4) Exit plan – investment payoff strategy & timeline to close

(5) https://www.Financialinstrumentmonetization.com – funding a paper asset usually long-term generally from 1 to 10 years

(6) Recourse – financial instrument repayment mandatory to avoid liability

(7) Non-Recourse – financial instrument repayment not mandatory

(8) Discounting of the face value – monetizing financial instruments – Nonrecourse is usually higher than recourse or generally to 25% of FV

(9) Surety or completion bonds – to insure repayment & prevent cost or timeline overruns

(10) Debentures – A debt to equity conversion bond – ideal for early-stage firms

(11) Stock loans – Non-liquidity monetization of company stock – quick close in generally 2 weeks

(12) REIT’s – income-producing Real estate investment trust

(13) DPO’s – Direct Public Offering – No accredited investors required – ideal for distributors, theater owners, cast/crew, supply-chain, consumers

(14) SPAC’s – Pre-funding Special Purpose Acquisition Corporations – also known as a back door or “blank check” corp – generally industry-specific

(15) Asset-based funders, debt lenders, equity securities investors – 3 different TYPE’s of VC – An amount of capital is not a TYPE of capital

(16) Agnostic – Not either industry-specific or demographic-specific

(17) Brand equity – can make your firm Unicorn wealthy – https://www.Enhancinginvestmentvaluations.com is the primary function of an IR media firm

(18) Bartered media equity – Also known as structured trade finance – generally for film P&A or TV syndication finance

(19) Unicorn – valuation of asset or company entity created if (assuming 10) rounds of capital raised to date exceed at least $100M = $1B

(20) Advance funding – can be a film MG (minimum guarantees) or royalties anticipated revenue streams – which counts as “skin in the game”

(21) P/O’s & A/R’s – purchase orders & accounts receivables finance – which counts as “skin in the game”

(22) Tax exemptions – can be corporate, income, export sales, & capital gains – “A penny saved is a penny earned” (“skin in the game”)

(23) Tax Credits – government soft money – counts as “skin in the game”. Film TC’s is only 1 example

(24) Nevada Production bank loan collateralization to $20M (subject to $5M POF’s)

(25) 85% US Fed Export loan guarantees for Overseas Buyers to 10 years – agnostic

(26) Buyer – or distributor/wholesaler – one that has ready (POF’s) proof of funds to be a buyer

(27) Same day approval Corporate Credit Cards from $1M – improves corp credit to attract more capital – acts as “skin in the game”

(28) “Silent Partner” Unsecured (LC) Line of Credit – To $3M in 3 weeks – signatory loan of 5 good credit US people pledging to match your $500K loan

(29) ESOP’s – Employee Share-ownership Pension – monetizable for “skin in the game” growth loans – also Tax-deferred retirement asset

(30) Nevada Overseas Trust – Legislative approved wealth/asset protection – equal in security to Switzerland or Cayman Islands

(31) RBF – Revenue-based funding – like REIT’s, IP Royalties, A/R’s, P/O’s

(32) EBITDA – Gross Revenues – Earnings before Interest, taxes, Depreciation & Amortization – A Pre-IPO type of funding based on at least $2M in current revenues

(33) SBLOC’s – Security-backed Line of Credit

(34) ILOC’s – Irrevocable Lines of Credit to $200M – monetizable insurance instrument – cost about 10% of FV to buy

(35) P-3 & EB-5 finance – types of government matching & foreign angel investor funding

(36) Opportunity & FTZ zoning – government funding & tax exemptions

(37) Conservation property abatements – income tax exemptions – 50% = light industrial or 100% agricultural or “natural land resource” (I.E. film studio “backlots”)

(38) $100M min. Insurance-wrapped Project Finance – cost about 5% of FV to buy

(39) PPP’s – passive compounded  revenue  private trade platforms – small, mid, & large cap cash or hard asset buy participation $1M to $100M

(40) From $25M NO down NO cap syndicated bank DPLC’s – with 10% POF’s – close in 3-4 weeks – interest-only monthly & annual fees

this a starter list subject to update<<<

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Source: https://sincityfinancier.wordpress.com/2021/09/28/terminology-that-you-must-anticipate-to-answer-that-professional-real-funders-lenders-investors-will-ask/

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