PT 2: My Standard Operating Procedure
August 29, 2007
Dear Prospective Client,
The purpose of the funding options list provided per request; is to help companies seeking debt/equity capital identify possible financing structures, combined with matching clients goals with capital providers approval criteria.
Preparation prior to contracting me; include having a business plan, financial statements, proof of funds, (for leveraging LTV’s or to acquire instruments), proof of collateral/current earnings, or letters of intent.
These supportive documents are not limited to; purchase orders, real estate appraisals, IP patents or copyrights, distribution or advance royalty agreements, letters/lines of credits, certificates of deposits, T-bills, and bank or insurance guarantees.
For those who indicate they have a private placement memorandum; it must be registered with their state and proof of this is to be provided.
Prior to sending the above to investor, the above can be sent to me for evaluation, in a 1 page non-attachment text summation. If the presentation is not clear in one page; sending a 50 page attachment will usually result in VC’s chucking it in the trash (The average acceptable business plan is 25 pages).
EVERY single investor will ask “What do you have invested in the project?” The other major question they always ask is “What is your exit strategy & related timeline to do so?”
If you have few or none of all of the above, then you are in the concept stage. I do not do that. I also do not deal with projects that have already been farmed out all over or are part of a daisy-chain of brokers. The funding success rate of these are nearly non-existant. I also do not pay client expenses to acquire tired so-called ‘accredited private investor’ cold-calling lists.
My PRIORITY of arranging financing is in the descending order;
(1) Asset-based Lending, (2) Collaterized Note Enhancement Finance, (3) Stated Asset Commercial Mortgages (4) Exchange Traded Funds (1031’s),(5) M&A’s Corporate Finance, (6)Sponsorship & Subsidies, (7) Angel/Institutional/Bartered Equity, (8) Reverse Merger Shells, and (9) Municipal Finance.
I do not work without countersigned contract signed and sent to me by 2 principals from firm prior to beginning ANY work.
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Best regards,
Jeffrey D. Allen
C.E.O.
(702) 369-2621 9am-5pm PST