Thursday, June 3, 2010 - Article by: MBGM Capital Inc -
Transactional Support Funding, JV/Cash Partnerships. For Commodities, Financial Instruments, Trade
Cash Participation Program Partnership for Commodities, Trade Platforms, and Financial Instruments.
Please remember this is NOT a LOAN, or Equity or Long Term Investment. </span>
Here's how it works:
You bring the deal. We bring the cash (investor). We put our cash in your transactions where there is a guaranteed exit.
In other words, we never put our funds at risk, and you shouldn't put yours at risk either.
We are not responsible for ensuring that you have a solid deal. That is for you and your team to do.
Therefore, we do no due diligence on your projects/ventures.
We fund transactions that are imminent (within 30 to 365 days of closing).
If you have a transaction with an exit, then we are interested. We will bring our cash to your deal. Often times we only charge about 1-3 points in escrow (for amounts under $100M) for our cash services. In some cases we require profit participation. Fees are determined by our level of involvement, the instruments being used and the overall risk level of the project/venture.
The service fee is mutually exchanged via escrow for the account and all documentation. You then have up to 72 hours to confirm our package to you. Use these 3 days to deduce that we are the partners that you want. We guarantee the account and the cash / instruments that accompany it. No money is exchanged until your attorney / banker verifies it to be valid. We can provide a MT799, MT760 or BCL and other instruments based on the project/venture. We have funds at several of the top 25 world banks so making cash available to you is quick and seamless.
To receive an accurate quote for our fees, send a one sheet stating length of time, amount, if the client needs a SWIFT code, what it's for, etc, with no confidential info.
For added safety, we can take out an Insurance policy against the escrowed deposit if needed.
Cash Partnership Case Study #1
Please remember this was a rare case, where we had to get two investors involved in this case study, The second investor might not be available or interested in every deal.
Client needed $264M partnership. The purpose for this partnership was to secure fuel and in turn re-sell the fuel off to their exit buyer.
The client's seller needed to see POF (Proof of Funds) in the form of MT799 from a Top 25 Bank, in order to give them POP (proof of product).
The challenge was that the client's exit buyer did not want to show POF before seeing the POP. So the client came to us to do a JV/Cash partner with them, so that the investor with the funds can issue a MT799 to the seller.
In order for the JV/Cash partner to issue a MT799, the investor required 1% deposit in an escrow, which the client did not have, the client only had about 160K.
In order for this deal to go through, we had to bring in a second investor who would finance most of that 1% deposit. In conclusion,
we setup a cash account for 2.64M in an escrow in order to secure the MT799 for $264M from the primary investor.
It took us 4 business days to conclude this transaction.
(Obviously, if the client's seller or buyer does not perform, we have no control over that, we only offer the Cash/JV partnership).
khoskote@commercialfinances.net
http://www.commercialfinances.net
312-628-7366
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