Venture Capitalists and Angel Investors
CBRIC understands this risk of being an investor and thus have come up with better funding arrangements that protect all parties and yet allow projects to proceed smoothly. Given below are some Arrangement Solutions.
INVENTORY CREDIT: In analogy, this arrangement can be simply described as the Investor buying inventory in bulk at a lower price and earning margin by selling the inventory back to the funded company to supply to its market. Inventory Credit works for companies with established product following and the challenge is really about demand being higher than what they can afford to supply.
CONTROLLED FUNDING: In this arrangement, CBRIC serves as the Controller for the Investor. Funds are made available but are released only according to how the company progresses according to the agreed Business Plan between the Investor and the funded company. Through the Shared Office Services program, CBRIC will be on top of the company’s implementation of the Business Plan and will report periodical updates to Investors, Investors can decide to abort funding at any time or provide more if they find very good reason to do so. With this arrangement, Investors can select members of the management team from the pool of Consultants and experienced Business Managers in CBRIC to look after the implementation and control funds release. This arrangement also encourages the funded entrepreneur to focus on what he does best – providing the best product or service he can to the target clients. Chances of success actually increases with clear focus.
TOLL PROGRAM: Investors purchase a machine, furnishing and facility which CBRIC facilitates a Toll Program on with participating companies. A simple example would be a 3D printer which can be used by inventors for prototyping purposes. Another would be a table plasma cutter that can be used by steel fabrication companies. A Toll Program means the investor legally owns the item, which can be in a facility owned by another investor, CBRIC administers its availability and use with its participants, and participants pay for each use in accordance with rates specified in the Toll Program. Investors get the payment less the administration fee and utilities used (if applicable) to operate the item.
FACTORING: Factoring is used for companies that need to finance orders that are beyond the capacity of their cash flow projections. Factoring is based on actual orders and receivables. A good factoring relationship essentially renders the participating company with unlimited capacity to supply.
Learn more by getting in touch with us. Contact us with a short note about your possible need for funding or business financing.