Personal Equity Raising - Xerqon Bridging Finance

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Courtesy of all of those orders which were aptly prescribed by all incarnations of The Shark Tank, Entrepreneurship TV Series ...

The most profitable modality of financing any business, can only be one which omits the traditional middle agent, while returning equally powerful earnings, for only the founders.

Bridging the gap between distributor customers (previously called wholesalers) and the immediate supplier is how the unassailable formula works. (It is vital to the founder's revelence that neither the Distributor nor the Supplier learn whom the other party is, by name or immediate location.)

There are four parties to the workable agreement

• Founder

• Distribution customer

• Supplier

• Founder's business transaction bank

The founder must gain a full understanding of the customer pain/requirements. That principal party must create a detailed business plan, exceeding no more than 5 pages of executive summaries for each business function. A maximum of 5 more pages of necessary, summarised legal inclusions and financial statements will form the Due Diligence section of the business plan.

A cautionary reminder is to never reveal the business partners to each other, in the document, including the Financial Position Statement - also known as the Balance Sheet. In short, translate that to a working knowledge of the sustainable production quality, capacity and pricing of the Supplier, for an outlook which summarises at least one United States election cycle - 4 years. That will be confirmed in writing, via email, with a mutual agreement to share that production Contract of Supply.

On gaining the Supplier's production Contract Of Supply, proceed to gain a similar Contract of Supply from the Distributor (distributor to the target market) which determines a date/period of funds transfer to the escrow partner (the founder's business bank).

The founder will form a working relationship with their business transaction bank. A formal business trust, bank account will be established with the bank, for escrow puposes as statutorily structured by the bank. The bank will offer a guarantee of escrow (formal, trusted payment facilitator) services via a formal email with the bank, email signature, with the standard privacy disclaimer. (The disclaimer is designed to protect the privacy of the communicating parties, inlcuding unintended recipients, with specific limitations.) The bank will have agreed to provide the founder with a copy of the email for third party, partner use.

The Distributor will form an escrow agreement with the founder and the bank as the co-signatory, recipient party to the agreement. The bank will guarantee the transfer from the Distributor to the unnamed Supplier, via the escrow agreement.

With the three agreements in place, and their individually contracted supply dates included, the process of supply from the Distributor, via the Bank, and via the Supplier will be all positioned to execute each obligation to schedule.

As long as the business is well researched and accurately commuicated, you should only succeed. Stakeholder management, or simply looking after your partners (especially the customer) chief concerns at all times is why you will succeed. For USD 10,000 - USD 30,000 you have the capability to return up to USD 2.5 million in EBIT - earnings before interest and tax - a form of net profit.

Back to basics and simplicity of process, to earn your way to financial independence.

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