Monthly Archives: March 2012

How To Correctly Approach A Trade Platform And Avoid Rejection: Are You Truly Ready, Willing and Able?

How To Correctly Approach A Trade Platform And Avoid Rejection: Are You Truly Ready, Willing and Able?

Being on the receiving end of dozens of submissions that come in on a weekly basis, most come from investors who do not understand the proper etiquette needed to successfully be invited into a program. Many times, an investor has a pre-conceived notion about how to approach a platform. They want to do things their way.

However, those pre-conceived procedures they would like to follow do not fit with the actual way the platform must, by banking rules and regulations, begin the process. The investor who insists on this generally is declined even the chance to be considered.

Think of it this way. You know that a party is being held where the guests are participating in the trade programs. They took the correct approach, followed the order and instructions of the trade platform to conform with banking and trading rules. They are inside having a grand time while they multiply their assets and receive profits for use by the trader.

Now, you were not invited to this party, but you would really like to attend. If you were going to try to barge in and crash the party, you would be automatically rejected, and most likely banned from showing up again. Pretty severe, isn’t it? Yet many times, an investor thinks they can push their way in, which is hardly the way to be invited!

To make yourself attractive for an invitation to the party, you must ‘dress up’ by providing the documents that start the invitation process. Those are commonly the passport and client information sheet of the owner of the bank account, a bank tear sheet no older than 10 days, and some other necessary documents. There is also the matter of your personal manner. Are you cooperative? Have you disclosed everything? Will you act like a partner who has a pleasing personality that the trader can work with?

These are just a few things that you, as an investor, need to be prepared to do.

The next step is presenting your documents to the designated person at the platform. This is how you make the request to come to the party. After a brief time making sure that you and the money you want to use are clean and clear, you have passed through the first doorway towards the party.

This due-diligence is mandated by the Know Your Customer rules. This is also the correct way for the relationship to begin. You, as the investor, have to take the first step and introduce yourself. Your documents are your introduction. If all the necessary paperwork is presented, and you are cleared to enter the next door, you will be dealing directly with the principal(s) of the platform. This is the point where you must pay close attention to the instructions that the platform gives you. They are required to follow ever-changing rules and requirements to invite you through the last door, which is the entry to the party itself. This is the Contract (Asset Management Agreement) which binds you and the trader together for the duration of the program.

Because of the enormous amount of fraud and misrepresentation that has resulted in extremely muddy waters for an investor, each step is taken rapidly but carefully, to make sure that all of the ‘i’s are dotted and ‘t’s crossed at each step.

If you have the right attitude (Willing) , the right presentation of yourself through your documents, and the willingness to let the traders do what they must in order to let you in to the party, then success is likely—assuming you are dealing with someone who truly IS connected to one of the real trade groups.
If you wish more information, contact the person you received this from and ask to speak to the trade platform representative.

Advertisements

7 Comments

Filed under Articles On Finance

Project Finance 101: Writing A Successful Plan

Project Finance 101:
The Business Plan

As the program director of the Major Infrastructure Funding Program says, it isn’t the business that fails, it’s the business plan.

The idea is that someone who knows nothing about the details and specifics can read the plan and understand what you are trying to do, how you will do it, with whom you will do it, and how will it meet the stated goals of the project.

 

For example, if you were to be trying to place an Internet-connected laptop to every child in a village, and engage teachers who would teach them in concert with an on-line system, you would need to show how you will use the funds; i.e. buying the laptops, distributing them, teaching the children how to use them, and then monitoring them to track their progress and help them succeed (staff/personnel).

 

What we are looking for is projects that will have humanitarian benefit, such as a hospital in an under-served area; a project that would be beneficial to the environment; a program for jobs-creation.

Each project owner needs to show that the business plan has been thoroughly developed, and the financial needs of the project are spelled out clearly with defined milestones where an additional tranche of the funding would be needed.

Executive Summary & Business Plan Content
  1. Overview: The Executive Summary and Business Plan form one document.  These notes are for the assistance of those requiring guidance on the content.
  2. They are not exhaustive, as each business and project will be different, and the document will therefore have to be tailored according to the particular situation.   Every letter and figure must be readily legible (at least 10pt.)
  3. Essential Requirements:  All documentation must be in clear English or a clear, certified, English translation in the case of any supporting document in local language. All amounts must be stated in 000’s or millions and currency in  Euro €, quoting the exchange rate used for conversion from local currency. Local terms, technical terminology, and acronyms must be explained – the investor must easily understand what is being proposed.
  4. The Executive Summary: This is really a brief Summary of the Business Plan, in order (a) to provide financiers and investors with a “snapshot” of the Company and its management, and an outline of the project, and (b) most importantly, to attract their interest in reading the full Business Plan, and funding the project.

It will therefore contain the following summarized information about:

  • The Company – it’s Management, and trading results for past three years.
  • The Project – background, market, summary and justification of proposal
  • Implementation of the Project and the timescale.
  • Project Cost.
  • Capital Contribution by the Company/Promoters.
  • Funding requirement – amount, modus (loan or investment), and proposed terms thereof.
  • Financial projections for 5 years – Gross Revenues, Operating Profit (after tax, interest and depreciation), Cash flow, Net Assets, and Return on Investment. – Only those items.

The Executive Summary should be constructed under the above-named headings, and should normally be contained in two A-4 sized pages, although it may, under certain circumstances, go up to a maximum of four pages.

Leave a comment

Filed under Articles On Finance

Bullet, Shmullet: Why it is so hard to ‘catch a bullet’.

Bullet, Shmullet: Why it is so hard to ‘catch a bullet’..

Leave a comment

Filed under Articles On Finance

TRUST. Has it become a 4-letter word in the day and age of the Internet?

 

By Michael J. Weiner, President/CEO, PreConstruction Catalysts Inc.

There was a time, perhaps you remember, when you could look someone in the eye and decide if you would trust them or not. Business was done on a handshake, and relationships always preceded some kind of deal. A relationship based on Trust was paramount. Even banks used the word in their names.

Then along came the Internet. All of a sudden, anyone could get online. A double-edged sword, the Internet allowed us to communicate with people all over the world, in ways we could not imagine. The other side of the sword, it seemed, has been the incredible amplification of those who are up to no good, and using the Net for bad purposes.

The last decade created such a deafening volume of people trying to lie, cheat and steal, most of the genuine people who are building relationships and working together to accomplish mutual goals disappeared, like the head of a tortoise pulling into its shell. It wasn’t long before the amount of ‘noise’ reached epic proportions and drowned out all semblance of reality, to be replaced by wishful thinking, unrealistic expectations and parasitic personalities pouring forth from all corners of the earth.

With this background, it is no wonder that investors have clammed up, and became hyper-suspicious about dealings with people who claim to be one thing, yet turn out to be another. The stories about alternative investments and the ‘opportunities’ have resembled just enough truth to make it seem real. In reality, the smokescreen is nearly impossible to pierce without a lot of wasted time chasing down genuine from fake.

Trust and the Internet have seemingly become mutually exclusive of the other. Yet there are indeed genuine, authentic people who are also using the Internet as a tool for creating new relationships that are honest and filled with possibilities, in ways that establish the foundation of a relationship. As an investor, what are some of the signs you should look for, before you think about trusting a new connection.

First, what have you found out about the person? Do they appear on the Internet in a favorable way? Do you have a feeling of open-mindedness when you read some of their writings? Is the person approachable, and do you get a feeling they know what they are talking about? Will this person meet you on the phone, or if convenient, in person? What is the person offering, and does it make sense?

Authenticity is easy to spot once you have done some homework, and had a conversation. It isn’t practical to meet face to face in person all the time, but on the positive side of the Internet, it is possible to get the next best thing with tools like Skype.

You do need to be careful as you pick your way through the noise, and there are ways to learn more about a person if you feel you can trust them. Ask questions, listen closely to the answers, and then decide if you wish to cultivate something more, which will lead you to a successful investment. It also never hurts to listen to your gut.

Byline: Michael Weiner is President and CEO of PreConstruction Catalysts, Inc., works with Ultra High Net Worth Investors for direct entry into Managed Buy/Sell Private Placement Programs, Humanitarian Infrastructure Project Funding, Limited Partnerships and other niche “outside the box” Alternative opportunities. His website is http://preconstructioncatalysts.com. He can be reached at mike@preconstructioncatalysts.com or in Washington, DC at 202-657-6960. Michael is in Washington, DC, and works worldwide with international investors and project developers.

Leave a comment

Filed under Articles On Finance

Protocol for Entry in PPP-Trade Program

There is a certain protocol, or order, in which the client is brought into the program. These are mandated by the trade platform and the government agencies which require them.

STEP 1. The Client first provides his documentation as requested. This is the “Request For An Invitation” to be considered by our banker.

    • Client Information       Sheet and Passport of Bank Account Owner
    • Board Resolution (if a       corporation) and Authorization to Verify (ATV)
    • Current Bank account       statement (no older than 10 days) signed by two authorized bank officers
    • Letter of Exclusivity

There is NO NEED for a face to face meeting. Everything is done electronically.

STEP 2. After successfully passing through the mandatory compliance due-diligence, you will receive the Contract (called an Asset Management Agreement) which is where the profits will be stated, along with the other terms of the agreement.

STEP 3. When the funds have been correctly blocked in your account (or the instrument), the trader will establish a separate account which is where the line of credit will be used for the trader.

STEP 4. If you request, the trader will also advise how to set up an account for you to receive the profits from the trading.

It is not a complicated process. It is made to be complicated by brokers and naive intermediaries, but the real program is simple when you follow the above steps, in the correct order.

You are working with me directly, which means you are working with the platform. I am here to guide you and assist you, but it is up to you to produce the needed documents that I must have in order to start.

Leave a comment

Filed under Articles On Finance