Below are several examples of our Courtesy Deposit product in use. These examples provide a very good idea of the many applications for our Courtesy Deposit product. These are just examples and there are many, many other potential uses for our product. We welcome and will review any alternative use for our product as long as our fundamental requirements are met.
Business Loan –
Jack C owns a Consulting business that assists individuals with personal in-home health related issues. Jack needs to raise money so that he can pre-pay his vendors in order to receive a much better discount on the products he provides to his customers. He is seeking $500,000. He has a professional loan proposal prepared and attaches our product to his proposal. (Jack requests a 1 million dollar deposit to be made by Deposit Capital, so his cost is $30,000) Jack’s banker says no to his loan because Jack’s business only has $400,000 in annual sales and he is a very conservative banker. In need of a lender, Jack then joins our 95% program and within 10 days, we have helped him submit loan proposal with our product attached at ten new banks we identify for him. Each of these banks receives a small Sample Deposit. Two of the banks like Jack’s proposal and make Jack an offer to fund his proposal with our product attached. Jack accepts one and receives his $500,000 funding.
Line of Credit –
Darrel M. owns a software company, which has developed their own proprietary software product. His business is only 2 years old but consistently turns in an excellent performance. His sales have gone from zero to $750,000. He is seeking a cash credit line for $1,000,000 so he can expand. Darrel is not a finance or banking expert and has no banker to go to. He joins our 95% program and has a professional financing proposal prepared with our product attached. Darrel knows his project is not the strongest and wants to really motivate a lender to fund his proposal. So Darrell requests Deposit Capital to make a $2,225,000 deposit, three times his financing proposal amount. His cost for this transfer is $66.750. He sends the package out to the ten banks and receives funding approvals from 3 of them. He accepts one and soon his business is on its way to success.
Loan Consultant –
Steven S. has a business firm that does accounting, bookkeeping and minor financing to businesses. He serves about 35 to 50 clients a year. Steven knows that if our product is attached to all his clients financing proposals the chances of their receiving funding will be much greater. Steven charges his clients $20,000. Steven earns $5,000 of this fee to prepare the financing proposal and then pays $25,000 for his client to join Deposit Capital’s 95% program. His client receives funding and then Steven is paid a success fee as well. Steven advertises his services and now services 75 to 100 clients a year.
Mortgage Broker –
Gina K. owns a mortgage brokering company. Her company generates about 15 new loans per month for her customers. She knows what motivates bankers and lenders, and advises all her mortgage-seeking customers to attach our product to their bank lending application proposals. Gina’s success has increased significantly and streamlined the approval process now that many lenders know our product is attached to her mortgage applications.
Real Estate Developer –
Thomas W. is a real estate developer. Thomas develops small tracks of town homes and apartments. Thomas is seeking a $7,000,000 financing for his project. Thomas knows several lenders so he does not join Deposit Capital 95% program. He requests Deposit Capital to arrange a $14,000,000 deposit into his lenders bank. Thomas’ fee is $420,000.
Real Estate Investor –
Vincent N.’s business is to buy fixer upper homes, renovate them and the sell them for a profit. Vincent is seeking $600,000 in financing to help his business grow. He has a banker he has worked with for 5 years and plans on sending this banker his financing package. He discusses the Deposit Capital product with his banker and his banker says, “Let’s see it”. So Vincent submits his financing package with the Deposit Capital product description attached to his financing proposal. His banker now understands what Vincent was talking about and agrees to the financing. Now Vincent can grow his business.
Residential Mortgage –
Cheryl G. is a single mom with a nice job wanting to purchase a second home for an investment. She knows she may barely qualify for another mortgage and it would certainly be at a high interest rate. She enters Deposit Capital’s 95% program and within a short time has 3 lenders willing to finance her second home investment. She returns to the same lender and obtains a new mortgage for her prime residence by attaching the Deposit Capital product to her refinance mortgage application. Cheryl G. is on her way to doing this many times.
Business Owner –
Walter D. is a business owner. He owns several hardware stores in a major US city. Walter wants to retire and he has received several offers from others who would like to purchase his business. None of the potential buyers has been able to qualify for financing. Walter advises them all to join Deposit capitals 95% program. Three do sign up with Deposit Capital 95% program and receive financing offers to buy Walter’s business. Walter accepts one.Mike D owns a small chain of convenience stores and wants to take less of a day-to-day role in the business. He realizes he needs to hire an experienced individual to take over the reins of the company and to provide him with adequate financial reserves so that the new hire can do his job. Mike realizes this is not an “A” typical financing request and knows his proposal needs some help. Mike has a professional financial proposal put together with the Deposit Capital product attached in order to accomplish this goal. Mike enters the 95% program and within a short time receives the necessary financing, hires his man, and begins to enjoy his newfound leisure time.
Business Start-up –
Tim A. has an excellent new business idea. He is experienced in his field and is seeking a $250,000 financing to start his new business. He has spoken to three bankers and sends all three his financing proposal. All three bankers deny his financing request. The denials suggest the proposal is just not good enough for the loan committee to approve the risk-reward tradeoff involved in making the loan. Tim then requests Deposit Capital to arrange a $500,000 deposit for him. That is enough for one of the previous three denial lenders to approve his financing. Tim now has his own business.
Business Acquisition –
Pat R. has been working at the same business for 15 years. The owners now want to sell the firm, and Pat really wants to buy it. He has a professional financing package prepared and joins the Deposit Capital program. Within 2 months, Pat R. is the proud owner of his own business.
Franchise Purchase –
Barry C. wants to purchase a new submarine sandwich franchise. He qualifies in all points except for the financial requirements. He hires a third party to professionally prepare a financing proposal and is advised to attach the Deposit Capital product to the financing proposal. Barry seeks out his own potential lenders and after 8 months receives the necessary financing to purchase the new franchise.
Business Expansion –
Cary A. is a CEO of a company that sells business support services to other businesses. He wants to secure his role as CEO and expand the business. He realizes he will need significant capital to accomplish this goal. He has a professional financing proposal prepared and hires a third party to secure his financing. The third party suggests he incorporate the Deposit Capital product into his financing proposal. Cary agrees and the third party hired obtains his financing for him much quicker.
Bridge Loan –
Jim P. operates a large printing company in California. Jim has identified, negotiated and secured all the necessary financing for an acquisition. Closing will take 6-9 months and this limits the available resources to Jim’s company. He does not want to break-up the acquisition so he is now seeking a Bridge loan to carry his business through this phase. Jim has no banker to help him so he enters deposit Capital’s 95% program. Jim has a professional bridge financing proposal prepared and within 45 days acquires the necessary short term bridge financing he needs.
Equipment Acquisition –
James W. owns a small regional freight airline carrier and wants to expand his freight business. He realizes he needs to acquire 2-3 additional aircraft. He also realizes his current operation cannot support a financing proposal to accomplish this. Jim has a professional financing proposal prepared and seeks out different ways to enhance his financing proposal and create motivation for a lender to say yes. He requests Deposit Capital to arrange a $5,000,000 deposit with his lender. After visiting many lenders, James secures the necessary approvals for his financing and acquires the aircraft.
Working Capital Needs –
Marshall S. operates 4 nightclubs is New York City. He realizes with the proper renovations he could generate significantly more revenues from his operations. Being in the nightclub business, he cannot locate acceptable lenders. Marshall enters the Deposit Capital 95% program. He has a professional financing proposal prepared with the Deposit Capital product attached and after several attempts obtains the necessary financing. This method proves successful for Marshall for his acquisitions as well.
Hard Money Lender/Borrower –
Andrew R. operates a regional consumer and business financing operation. He sees many loan proposals he would like to approve but they are just outside his approval criteria. He now suggests to the borrower to attach Deposit Capital’s product to the financing proposal. Andrew now approves many more proposals.
Retail Store –
Cheryl H. owns a women’s retail clothing store. She wants to increase the number of brands she carries. The designer asks for a $100,000 deposit on future purchases. Cheryl’s business cannot get any additional financing. Cheryl suggests to the designer that she will arrange a $250,000 deposit to be made at the designer’s bank on “behalf of Cheryl’s company”. The designer knows they cannot touch the deposit but acknowledges Cheryl’s financial capabilities and accepts. Cheryl’s store gets the new brands and attracts many more customers than before.
Bryan W. is an investor. He makes conservative investments of all sorts. Bryan has identified an investment that requires $550,000. Bryan chooses not to use his money and has identified a private individual who can loan him the money. So Bryan has a professional financing proposal prepared and has Deposit Capital arrange a $1,100,000 deposit be made at the individual’s bank that he is borrowing the money from. The individual lender receives a reduced interest rate from his bank and makes the private loan to Bryan.
Fixed Income Investor –
Hal S. is a fixed income investor. He identified an arbitrage situation in the international marketplace that allows for a 14% annual return. Hal has a professional financing proposal prepared and enters the Deposit Capital 95% program. He is seeking $9,000,000 in financing. Two of the ten banks approve his financing including a non-USA bank that will guarantee the deposits arranged by Deposit Capital. Hal closes the financing and receives an annual 1.5% arbitrage fee on $4,500,000 for 10 years, risk free.
Venture Capital –
Steven R. operates a small venture capital firm. He advises many of his potential recipients to attach the Deposit Capital product to their financing proposal. As with any lender, when Steven sees a financing proposal that is different from the next one and has incentive or extras the others do not Steven is motivated to approve it. This enables Steven to approve many more financings a year. Steven keeps his banking relationship in very good order at no cost to his venture capital firm.
Capitalization Needs –
A small group of local businessmen want to start their own bank. They have recruited their bank president and raised $1,000,000 to start their bank. Their president suggests they engage Deposit Capital to arrange a $10,000,000 deposit to be made at their newly formed bank. This will enable the new bank to get going much more quickly. The group engages Deposit Capital to make the $10,000,000 deposit for a $300,000 fee. The new bank attracts $34,000,000 in deposits the first year.
Relationship Deposit –
Roger D. has just moved into a new city. He wants to establish a solid banking relationship but does not know which bank/banker is best suited for him. He identifies three potential banking relationships and engages Deposit Capital to deposit $250,000 in each of the three banks. His cost for the total in $750,000 in transfers is $22,500. As far as Roger is concerned, this is money well spent to identify the best baking relationship as well as providing evidence to the new banker that Roger D. is a customer to accommodate.