Managed Buy and Sell Program for Businesses

Description

Need help securing substantial capital from retail banks?

 

AltFunds Global offers a lifeline to businesses like yours through our Managed Buy-Sell Program of Standby Letters of Credit (SBLCs). By partnering with reputable family offices based in Texas, USA, and Madrid, Spain, alongside professional law firms, we transform your capital journey from constraint to opportunity. Imagine accessing significant funds, leveraging the prestige of international banks and family offices, and capitalizing on global financial markets while boosting your liquidity and credibility. This isn’t just financing; it’s a strategic leap toward securing the capital your ambitious projects demand.

Benefits

The Managed Buy-Sell Program of Standby Letters of Credit (SBLC) provides multiple advantages:

  • Access to Capital: It offers businesses the capital they may not obtain through traditional financing.
  • Leverage Prestige Family Offices: Businesses gain the credibility and security of working with reputable family offices, ensuring a secure transaction.
  • Enhanced Liquidity: The program enhances liquidity by allowing businesses to monetize the SBLC for a higher price at another bank.
  • Strategic Business Funding: Businesses can use the program to pursue strategic funding opportunities, expand their operations, or enter new markets.
  • Credibility and Reputation: Collaborating with top banks and legal firms bolsters your business’s credibility and reputation.
  • Risk Management: Due diligence and partnerships with reputable parties help manage and mitigate transaction risks.

Important Note:

Despite these benefits, thorough due diligence and understanding all aspects, including the potential risks, before participating in a managed buy-sell program of SBLCs are essential. We encourage all clients to complete their due diligence on AltFunds Global and any financial institutions or law firms we leverage.

Illustrative Case Study

The Capital Breakthrough of a High-Potential Manufacturing Firm

Scenario Overview:

Consider the case of a dynamic enterprise in the manufacturing sector—referred to here as “Atlas Manufacturing” for confidentiality—faced with the challenge of scaling its operations. The firm envisioned a $12 million initiative to enhance its production capabilities but found traditional financing methods restrictive and cost prohibitive.

 

Traditional Financing Woes:

Atlas Manufacturing initially pursued conventional funding routes, encountering protracted approval times, high interest rates, and rigid loan structures that limited its operational flexibility.

 

Transition to Alternative Financing:

Atlas Manufacturing’s turning point came when they were introduced to AltFunds Global’s Managed Buy-Sell Program of SBLCs. Through this innovative financing avenue, the firm accessed a network of private banks and family offices that ovver an alternative capital procurement method that starkly contrasted their previous experiences with conventional banks.

 

Comparative Advantages:

  • Capital Freedom: The SBLC program offered Atlas Manufacturing a broader and more accessible capital reach, unlike the stringent borrowing limits set by traditional banks.
  • Cost of Capital: The typically high interest rates that would erode the company’s revenue were mitigated by the profit potential in buying and selling SBLCs.
  • Global Banking Networks: Moving beyond local financial institutions, Atlas Manufacturing entered the global finance realm, enhancing its business profile.
  • Operational Liquidity: The SBLC program provided liquidity unmatched by traditional loans, enabling essential financial maneuvers for growth.

 

The Successful Outcome:

Through the SBLC program, Atlas Manufacturing strategically placed an SBLC and engaged in savvy trading, bringing in capital flows far exceeding their expectations. This strategic financial decision accelerated the rollout of their new production line, driving early completion and profitability without the limitations of traditional financing.

 

Conclusion:

This illustrative case study underscores the transformative impact of alternative capital solutions on growth-oriented businesses. Atlas Manufacturing is a paradigm for firms willing to adopt non-conventional financial instruments to achieve their expansion objectives, showcasing the shift from traditional financing to innovative capital acquisition strategies with AltFunds Global.

Qualifications

  1. Accreditation of Financial Expertise: Entrants must demonstrate financial sophistication, being accredited investors as defined by US SEC Rule 501 of Regulation D, Canada’s NI 45-106, or parallel standards.
  2. Substantial Corporate Net Worth: Your corporation should have a net worth exceeding $2.1 million, affirming the strength and sustainability required to engage with large-scale financial instruments.
  3. Strategic Business Planning: Prospective clients must present a credible business plan requiring at least $10 million in funding.
  4. Liquid Assets Availability: This program caters to accredited investors with businesses seeking funding with minimum liquid assets of USD 1.3 million, ensuring the flexibility to meet your funding needs.
  5. Transactional Readiness: Clients must be prepared to proceed with the necessary financial undertakings, underscoring a commitment to the transaction.

What’s Unique About Our Service?

  • Surpass Traditional Banking Limits: Access funding amounts beyond what retail banks can offer through private banks and family offices, unlocking new possibilities for your business’s growth.
  • Insider Access to Global Banking Dynamics: Gain a rare glimpse into the operations of international financial markets, learning firsthand how banks across the globe collaborate and compete.
  • Strategic Knowledge Advantage: Equip yourself with the insights and understanding necessary to navigate the complex world of global finance with the expertise of a seasoned professional.

Process

  1. Consultation and Accreditation:
    • Begin your partnership with a strategic consultation call. Verify your status as an accredited investor and prepare to present a comprehensive business plan targeting funding needs of over $10 million. This foundational step is crucial for aligning our objectives and understanding your financial goals.
  2. AFG Paperwork Completion:
    • Upon successful accreditation, we’ll conduct a project risk assessment. After approval, AltFunds Global will provide essential documents, including Mutual NDAs, KYC forms, and a Joint Venture Agreement, to formalize our partnership based on mutual transparency and commitment to success.
  3. Family Office Introduction:
    • Once the formal documentation is signed, we’ll facilitate introductions to our affiliated family offices in Texas and Madrid, setting the stage for your financial advancement.
  4. Family Office’s Comprehensive Assessment:
    • Our financial partners will independently evaluate your business to ensure its integrity. This step reinforces the confidence in our collective pursuit of success.
  5. Partnership and Account Activation:
    • After due diligence, the bank will invite you to open an account and provide a direct contract outlining the next steps. Deposit insurance can be arranged for an additional fee, adding a layer of security to your investment. The managed buy-sell program will commence once the agreement is finalized, and the paperwork is in order.

Essential Documentation For Us to Get Started

  • Client Information Sheet/Know Your Client (CIS/KYC):
    • Submit AltFunds Global’s CIS/KYC form to allow a comprehensive review of your business background and financial standing.
  • Joint Venture Agreement:
    • Sign the Joint Venture Agreement outlining the terms and scope of our collaboration and investment strategies.
  • Non-Disclosure and Non-Circumvent Agreement (NDA/NCA):
    • Complete the mutual NDA/NCA to safeguard the confidentiality and exclusivity of the partnership and transaction details. 
  • Banks/Lenders Checklist:
    • Click here to view a checklist of what Banks / Lenders are looking for.

Fees

The minimum wiring fee to participate is USD 1.3 m. AFG’s fee is 20% of proceeds, paid upon success.

     

      Commission to brokers

      If you’re a broker looking to earn commissions, we offer a 10% commission of AFG’s 20% profits for direct referrals and a 5% commission of AFG’s 20% for any direct referrals that introduce clients when we complete a JV agreement with the client as 50/50 partners. Our commitment to brokers ensures a mutually beneficial relationship.

      Timelines

      Experience efficient and reliable timeline management, with program duration varying from 60 to 360 banking days, ensuring your financial goals are met promptly.

       

      Disclaimer

      Notice to Prospective AltFunds Global Corp Clients

      This website serves as a formal legal disclaimer, defining the operational and legal guidelines under which AltFunds Global Corp engages with its esteemed clientele. Our guiding principle is transparency and clarity, empowering our clients with all necessary information for their financial dealings with us.

      Comprehension of Your Financial Engagements

      We strongly recommend that all clients actively involve their business consultants or legal representatives in transactions. This is crucial for thoroughly understanding their engagements’ specific details and implications. AltFunds Global Corp is committed to providing straightforward and precise information to aid in your decision-making process.

      Client Financial Obligations

      Clients are responsible for all bank-related charges, legal fees, and tax liabilities incurred during transactions. This clarification ensures that clients are fully aware of their financial commitments.

      Licensing and Compliance

      AltFunds Global Corp operates through a registered dealer broker duly licensed under the regulations of the SEC and FINRA. While AltFunds Global Corp is not a licensed dealer broker, we are dedicated to upholding the highest service standards within the jurisdictions where our digital content is consumed and our publications are available. Our commitment to excellence and adherence to securities laws across various jurisdictions remains steadfast.

      Strategic Partnerships for Enhanced Compliance

      AltFunds Global Corp collaborates with licensed dealer brokers and specialized legal firms across different jurisdictions to ensure regulatory compliance and offer top-notch services. This approach allows us to furnish our clients with expert advice and tailored solutions, ensuring compliance with pertinent laws and regulations.

      AltFunds Global Corp’s Dedication

      Our goal extends beyond mere transactions; we aim to be a key partner in achieving your business objectives. By harnessing our vast experience, resources, and innovative solutions, AltFunds Global Corp stands ready to assist you in reaching your strategic goals. Our unwavering commitment to compliance, transparency, and exceptional client service establishes us as your partner of choice in the structured financing domain.

      AltFunds Global Corp invites you to embark on a journey of financial partnership defined by integrity, expertise, and a deep commitment to your success.

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      Frequently Asked Questions

      What is the difference between a private placement program and a managed buy-and-sell program?

      In a managed buy-and-sell program, you participate in a program using a financial instrument like an SBLC for $100 million and monetize it for a profit. For example, you can purchase an SBLC at 61% and sell it to a monetizer at 80% LTV, earning a profit of 19% within a year. This program allows you to deposit capital and earn a profit, even if you don’t have the $100 million required for a private placement program.

      The trader lines up a series of buys and sells of a banking instrument and generates revenue based on the deposit. For instance, with a $100 million deposit, you can earn $40 million per month for eight months, totalling $320 million in revenue. On the other hand, a “genuine” private placement program requires a minimum deposit of $100 million to participate and earn a return, such as 40% per month.

      At AltFunds Global, we have years of experience with these programs and have found that clients with a minimum deposit of $1.3 million USD or more can still benefit from a managed buy-and-sell program instead of a private placement program. Our team of experts can help you determine which program is right for you based on your business goals and financial situation.

      So, whether you’re interested in a managed buy-and-sell program or a private placement program, we’re here to help. Contact us today to learn more about these opportunities and how they can benefit your business.

       

      Where can I get more information about SBLCs from your organization?

      To learn more about SBLCs from our organization, you can easily access our YouTube channel. Our channel provides informative and detailed videos to help you better understand SBLCs and how they work. You can also find various other helpful resources on our channel, including customer case studies and customer walkthroughs related to SBLCs. So, if you are looking for accurate and reliable information about SBLCs, be sure to check out our YouTube channel today.

      Are you ready to take the next step toward achieving your financial requirements?

      If so, get started by clicking the button below.

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