We work with thousands of funding sources, representing every continent except Antarctica, and the feedback from them is similar worldwide that almost all Startup Companies seeking funding are a waste of time, keep reading to find out why, and learn from this so you become a better applicant who receives funding.
Almost all entrepreneurs from startup companies enter the funding process woefully ignorant and then they blacklist themselves from ever receiving funding by broadcasting their ignorance throughout the internet instead of learning what they should be doing if they are interested in receiving funding. Funding sources call this the “I am stupid and I am right” mind set. Then, other ignorant people add comments, it becomes the blind leading the blind, and all of you blacklist yourselves because funding sources see these comments during a due diligence process then decline your projects for investment because they have no desire to be business partners with the ignorant and unprofessional, I see this frequently.
Numerous funding sources fund projects worldwide within any industry that is legal within any country, for startup and existing companies, daily. Many of them have changed their corporate philosophy and now refuse to fund ALL startup companies because there is a phrase used in the funding industry called “time wasters” for applicants who are ignorant, deaf, dumb & blind, who enter the funding process unprepared, do not listen to direct feedback from brokers & funding sources about what to do to receive funding, and then when their projects are declined, they blame everyone but themselves and go back onto the internet and waste everyone else’s time, which infuriates the funding industry. As a result, investors talk to each other and as professional courtesy, they warn each other about “time wasters” so other investors do not waste their time, the applicants become blacklisted by the funding industry.
If you have been on the internet for more than thirty days and no funding source has spoken to you, asked you to sign a contract, and started the due diligence process to verify the accuracy and honesty of you, your company, and all submitted paperwork, GET OFF THE INTERNET, analyze the mistakes you have made, and STOP WASTING EVERYONE’S TIME. Investors are typically parts of many investor groups and when an applicant is declined, or found out to be a liar, unprofessional, or a time waster, that information is shared with other investors as professional courtesy and you become blacklisted, one of the reasons less than 1 % of all startup companies EVER receive funding. Investors also know how long you have been seeking funding and know that if you have been seeking longer than thirty days that you have made numerous mistakes and are difficult to work with which is why no funding source has started the due diligence process to potentially fund your project.
Too many Applicants think the process consists of announcing you need money and waiting for someone to hand it to you, no questions asked. This is not charity; you are expected to be able to explain how an investor will have a profitable investment, and how an investor will be repaid for any debt you incur. If your proposal is to only repay a percentage of future profits, stop wasting everyone’s time on the internet. Existing companies will be asked to provide audited financial statements, startup companies will be asked for notarized bank statements to verify assets.
All applicants will be asked to provide cash and noncash collateral, if you expect an investor to provide 100 % investment and assume 100 % of the financial risk, stop wasting everyone’s time on the internet. If you are a Startup Company who thinks an investor will give you money in exchange for equity only when your company does not have established revenue and profit stop wasting everyone’s time on the internet. Do not seek funding until your company is legally registered, you have a completed business plan & completed draw down schedule for the exact amount of cash you are seeking, otherwise investors will gauge that you are not ready to receive funding.
Also, go to a bank, and apply for a loan first before going onto the internet, and learn the process. You will need to pay fees, you will need to legally be a company, have all financial statements, budgets, business plans, corporate biographies, etc. ready before applying. There is a reason entrepreneurs are on the internet seeking funding, banks have already declined them for funding because they are deemed high risk investments. Any applicant who claims to be a no risk or low risk investment on the internet is seen as naïve and a liar by investors, and you will not be taken seriously.
Furthermore, investors do VERY THOROUGH due diligence before deciding whether to invest in a project, and ALL applicants go through due diligence at their own expense because some applicants lie and submit fraudulent applications that become declined. If you ever have made ignorant or negative comments on the internet, PLEASE DO NOT APPLY because you will be declined for funding. Investors have ZERO INTEREST in being business partners with anyone who is ignorant or unprofessional and they will find your internet comments during the due diligence process, so please think very carefully before you make internet comments, they will come back to haunt you, I see it occur frequently.
Applicants who think that companies are fraudulent because they charge due diligence or any other fee are ignorant and time wasters, funding sources know that many applicants are liars who submit fraudulent applications and they will not spend their own money to perform due diligence only to find out the applicant is a liar, fraud and time waster. Also funding sources hire attorneys to create contracts, accountants to verify financial statements, budgets, and other financial documents, and industry consultants who are experts in your industry to help verify if a project is an intelligent investment, these consultants charge thousands of dollars for their time, and funding sources pass those costs to the applicant because they are tired of eating that cost only to find out the applicant was a liar, fraud and time waster.
Learn from this advice because I have direct feedback from funding sources that some have left the industry because they are tired of wasting their time with the numerous liars, frauds and time wasters applying for funding, and many have switched corporate philosophy and no longer fund startup companies because of the ignorance, lack of professionalism, and rampant unprepared volume of applicants who waste everyone’s time and then broadcast their ignorance throughout the internet after their projects are declined for funding, or after they are caught lying during the due diligence process.
Ask anyone who funds projects for a living to verify that less than 1 % of ALL startup companies ever receive funding, and that almost all applications from startup entrepreneurs are a waste of time because of ignorance and a lack of preparation. Learn from this and be prepared before you seek funding. You make ONE first impression; make it a first impression that is not wasting everyone’s time.
Thursday 5 April 2012
Due Dilligence Fees
We work with many funding sources worldwide. They do not charge upfront fees (when an applicant is charged money to be accepted as a client), closing fees, contingency fees, processing fees or application fees and there are plenty of companies that do charge those fees, in addition to “retainer” fees to remain as a client of the funding source after you have already been charged upfront fees.
However, it is very important that applicants understand that they are expected to cover the cost of the funding source’s investigative work and travel to their company during the due diligence process.
If a client is not prepared to pay this due diligence fee, then funding sources will not work with them, this is not negotiable.
Funding sources do not give millions of dollars to companies without a due diligence process beforehand. This is not only common sense it is good business sense. Go to a bank, apply for a loan, and see if the bank has you fill out forms, answer many questions about yourself and your company and pay fees related to applying for a loan, before you receive any money, then you'll better understand a due diligence process.
Funding sources verify the accuracy of all information submitted during the funding process and if an applicant has lied and submitted a fraudulent application, which happens occasionally, the project will be declined for funding. No funding source will “guarantee” funding because due diligence is required to verify the accuracy and honesty of the applicant and the applicant’s submitted paperwork, and unfortunately some applicants lie. Again, go to a bank, apply for a loan, and verify that you will go through the exact same process, and pay fees to do so; it is the standard within the public and private banking industries.
Investors are interested in making profitable investments in which the client company and the investor both earn a lot of money. Funding sources will not use their own funds to investigate a project, and operate at a financial loss, neither will banks.
Investments are about calculating the amount of perceived risk and managing that risk, and the due diligence process is about a potential investor finding out about the company seeking funding, the members of its management team, and gauging if the company is a potentially profitable investment. Funding sources’ due diligence fees occur before closing, before funding sources spend money to hire third party due diligence companies, and the applicant is expected to pay these expenses before the funding source begins its due diligence process.
Due Diligence includes but is not limited to the following:
- Civil, Corporate and Criminal Background Checks on all Principals and management team (Key Personnel)
- Investigating the Financial Background of Principals (personal and corporate)
- Accounting Fees - Assigning an accounting firm to run a parallel pro forma and to verify the accuracy of accounting data submitted
- Travel to site and meeting with the principals if desired by the funding source
- Hiring Industry Consultants to help evaluate the potential risk of the investment
- Lien and Title Property Searches
- Consulting of Lawyers for legal matters and preparation of legal contracts
Fees for Due Diligence vary by each individual project, your industry, your geographic location, and the expected costs of accountants, attorneys, industry consultants, etc. They are dictated by the funding source, and are not negotiable. When travel is involved, fees will be higher. The decision of whether or not the funding source requires a face-to-face meeting is optional, decided by the funding source as part of their criteria before approving your project to receive funding, and is not negotiable.
We work with thousands of funding sources worldwide, the fees also vary by funding source, so do not ask me how much Due Diligence Fees are for your project until after a funding source has verified interest in your project, a desire to proceed, and the funding source provides an invoice for the amount of expected due diligence costs, until then we do not know how much due diligence fees will be for your project.
Send an e-mail to me at ceo@hindmarshfinance.com
However, it is very important that applicants understand that they are expected to cover the cost of the funding source’s investigative work and travel to their company during the due diligence process.
If a client is not prepared to pay this due diligence fee, then funding sources will not work with them, this is not negotiable.
Funding sources do not give millions of dollars to companies without a due diligence process beforehand. This is not only common sense it is good business sense. Go to a bank, apply for a loan, and see if the bank has you fill out forms, answer many questions about yourself and your company and pay fees related to applying for a loan, before you receive any money, then you'll better understand a due diligence process.
Funding sources verify the accuracy of all information submitted during the funding process and if an applicant has lied and submitted a fraudulent application, which happens occasionally, the project will be declined for funding. No funding source will “guarantee” funding because due diligence is required to verify the accuracy and honesty of the applicant and the applicant’s submitted paperwork, and unfortunately some applicants lie. Again, go to a bank, apply for a loan, and verify that you will go through the exact same process, and pay fees to do so; it is the standard within the public and private banking industries.
Investors are interested in making profitable investments in which the client company and the investor both earn a lot of money. Funding sources will not use their own funds to investigate a project, and operate at a financial loss, neither will banks.
Investments are about calculating the amount of perceived risk and managing that risk, and the due diligence process is about a potential investor finding out about the company seeking funding, the members of its management team, and gauging if the company is a potentially profitable investment. Funding sources’ due diligence fees occur before closing, before funding sources spend money to hire third party due diligence companies, and the applicant is expected to pay these expenses before the funding source begins its due diligence process.
Due Diligence includes but is not limited to the following:
- Civil, Corporate and Criminal Background Checks on all Principals and management team (Key Personnel)
- Investigating the Financial Background of Principals (personal and corporate)
- Accounting Fees - Assigning an accounting firm to run a parallel pro forma and to verify the accuracy of accounting data submitted
- Travel to site and meeting with the principals if desired by the funding source
- Hiring Industry Consultants to help evaluate the potential risk of the investment
- Lien and Title Property Searches
- Consulting of Lawyers for legal matters and preparation of legal contracts
Fees for Due Diligence vary by each individual project, your industry, your geographic location, and the expected costs of accountants, attorneys, industry consultants, etc. They are dictated by the funding source, and are not negotiable. When travel is involved, fees will be higher. The decision of whether or not the funding source requires a face-to-face meeting is optional, decided by the funding source as part of their criteria before approving your project to receive funding, and is not negotiable.
We work with thousands of funding sources worldwide, the fees also vary by funding source, so do not ask me how much Due Diligence Fees are for your project until after a funding source has verified interest in your project, a desire to proceed, and the funding source provides an invoice for the amount of expected due diligence costs, until then we do not know how much due diligence fees will be for your project.
Send an e-mail to me at ceo@hindmarshfinance.com
Wednesday 4 April 2012
Existing Company Seeking Funding
Are you seeking funding for 1 Million + USD in Exchange for Debt or Equity?
Contact me if you work for an Existing Company (which has Cash, Accounts Receivable, Inventory, other Assets, Revenue, EBITDA & Net Profit) seeking funding of 1 million + US Dollars in exchange for Debt (Loan) or Equity (Partnership).
Only Executives (preferably the C.E.O.) legally capable of signing a contract on behalf of the company requesting to receive funding should contact me.
Send an e-mail to me at ceo@hindmarshfinance.com
Contact me if you work for an Existing Company (which has Cash, Accounts Receivable, Inventory, other Assets, Revenue, EBITDA & Net Profit) seeking funding of 1 million + US Dollars in exchange for Debt (Loan) or Equity (Partnership).
Only Executives (preferably the C.E.O.) legally capable of signing a contract on behalf of the company requesting to receive funding should contact me.
Send an e-mail to me at ceo@hindmarshfinance.com
Money For Commercial, Real Estate Development, Financing, Purchasing & Sales
Our funding sources are providing funding for worldwide projects of $ 500,000 or more in US Dollars in exchange for debt (development & loan financing), purchases & sales if you meet the criteria below.
Types of funding…
• Development (for Apartments, Condominiums & Townhouses)
• Financing (for Commercial Buildings, Industrial Buildings & Property)
• Purchases & Sales (for Businesses)
Additional funding is available for financing, purchases & sales of…
• Multiple Family Buildings (Financing, Purchases & Sales)
• Office Buildings (Financing, Purchases & Sales)
• Raw Land (Financing, Purchases & Sales)
• Retail Building (Financing, Purchases & Sales)
• Strip Mall (Financing, Purchases & Sales)
• Warehouses (Financing, Purchases & Sales)
Available for both Start Up (pre revenue) and existing companies
All countries are eligible
If you are contacting me to request funding, you need to be one of the executives of your business (preferably the C.E.O.), legally capable of signing a contract on behalf of your business.
Send an e-mail to me at ceo@hindmarshfinance.com
Types of funding…
• Development (for Apartments, Condominiums & Townhouses)
• Financing (for Commercial Buildings, Industrial Buildings & Property)
• Purchases & Sales (for Businesses)
Additional funding is available for financing, purchases & sales of…
• Multiple Family Buildings (Financing, Purchases & Sales)
• Office Buildings (Financing, Purchases & Sales)
• Raw Land (Financing, Purchases & Sales)
• Retail Building (Financing, Purchases & Sales)
• Strip Mall (Financing, Purchases & Sales)
• Warehouses (Financing, Purchases & Sales)
Available for both Start Up (pre revenue) and existing companies
All countries are eligible
If you are contacting me to request funding, you need to be one of the executives of your business (preferably the C.E.O.), legally capable of signing a contract on behalf of your business.
Send an e-mail to me at ceo@hindmarshfinance.com
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