The Great Shock of April 15th - You Need Better Tools!!!

Yesterday I spoke with one CPA that was completely unaware that their Client had purchased an additional building (over $2M in cost), and another CPA that upon delivery of our Cost Segregation report didn’t understand where we got our figures from only to find out the Client spent over $300K in renovations last year that they failed to tell the CPA about.

Most business Owners are guilty of … running their business. As business Owners, we make decisions today that are good for our company and good for our bottom line, with little to no regard of how it affects our tax strategy (and it usually wouldn’t cross our minds to call our CPA in the middle of summer to review something for next April).

What Can I Do About It?

Step #1 for most business Owners I’ve talked to is:

Pound their fist on the desk angrily while complaining about the government

When that ceases to provide relief move on to the below Step 2

Step #2 (True Step #1)

For some business Owners, you bit the bullet and made a payment on tax day, for others you either filed extensions or simply filed without making a payment and are going to wait for the dreaded IRS bills to arrive.

In either instance, the good news is that just because tax is coming doesn’t mean your numbers are written in stone. There is over $200B in Federal Tax Incentives allocated to small and mid sized businesses to help offset your liability.

We’ve developed a simple online tool for business owners to check in 30 seconds if you qualify for any Federal Programs.

Tap Here Now

4 types of Proof of Funds and their uses

There are 4 types of POFs, plus BG/SBLC (see below) and SWIFT

1. Brokerage Accounts
2. Escrow Accounts
3. Attorney Escrow Accounts
4. Bank Accounts (on a case by case basis/US banks only)

Sample Quote Shown Below From 9/16/13

Note: There will be a letter issued by a licensed and insured title and escrow company stating that an account has been established in the client's name and the dollar amount.

Brokerage account POFs from $5M to $2.5B
Escrow account POFs from $100K to $30M
Attorney escrow accounts POFs from $100K to $1M
Bank account POFs from $300K to $1M.

For brokerage accounts and bank accounts, they are account statements or verification letters. Depending on the transaction, for brokerage accounts, the SBLC verbiage can also accompany the account.

For the attorney and escrow accounts, an escrow confirmation letter or attorney letter will be issued confirming the balance.

Larry @  Lgpotter33@gmail.com

A proof of funds is a document that indicates that a person has the ability and funds available to use for a transaction of some sort. Normally, it comes in the form of a bank, security or custody statement. The purpose of the POF is to ensure that the funds required for a transaction are obtainable and legitimate.

What banks can be dealt with? Any bank, but in most cases, it is the most convenient bank to the transaction.

Accounts will be established in the client’s name and can be verified. Accounts can only be verified via SWIFT if there is collateral for the funds.

Note: There is never an obligation to continue beyond a one month period.

For brokerage accounts, a brokerage account will be opened in the name of whoever would be necessary for you.  The account can be verified via email, phone, online and online via access code.  The client will also have online access to their account.

For escrow accounts, an escrow account will be established at a licensed title & escrow company in your name or your client's name for a small fee.  The account can be verified via phone, fax, email, etc. The letter issued by the title company will state that they confirm that an escrow account has been established on a certain date for a certain dollar amount and will give the escrow account number.  It will also state that the information can be verified via phone, email, etc. 

Brokerage accounts can be in Euro or USD and will be much cheaper. Escrow accounts have to be in USD.


For bank POFs in the client's name, the client will need to provide collateral. When they provide the collateral, there are no restrictions on the funds. Pretty much any kind of collateral would be acceptable. It would be much easier for them to present collateral and we can let them know if it is acceptable or not. Any asset that can be liquidated or sold on an open market will suffice. As an example, depending on the asset, you would need between $10.5M and $20M in assets for a $10M loan.

The only other option would be a bank account POF in the name of the lender.  The lender would first have to approve the use of the account.

A Proof of funds is not a loan, rather an inexpensive and efficient way to affix a strong partner to your current financial profile and buy time during transactions. Sometimes referred to as ’leased funds’ or a ‘cash collateral’ account, Proof of funds are real accounts with actual debt-secured, cash-backed deposits.

Pricing can be effected by:

• Issuing bank
• Verbiage
• Term of SBLC/BG/LG
• Face value
• Use of SBLC/BG/LG

Sample Quote (9/16/13): For one client, the cheapest route was the brokerage account for a $13M POF  at

- 0.860% per 30 days 

- 1.520% if the 60 days is paid in the first payment

To obtain a quote, the provider needs to know the amount required, USD or Euros and how long needed.

Proof of Funds Have Been Successfully Used For:

*Gold, Petroleum, Commodities Transactions
*Private Investment Opportunities
*Collateral
*Leverage Funding for Commercial Real Estate
*Balance Sheet Enhancement
*Demonstrate Proof of Funds


SWIFTS - As you know, they are electronic notices sent from one bank to another. 

The MT799/MT999/MT199 Swift's are FREE FORMAT MESSAGES useful for Proof of Funds 

The MT760 Swift is a guarantee of value

A MT103 is a bank wire. 

We typically have capability to send SWIFT MT799, MT99, MT199 and MT760 on cash and SBLC/BG's.

All accounts are issued in your name and can also include 3rd party beneficiary information as well.

Note: Can issue instruments from HSBC or Barclays UK. Yes, we can issue RWA pre advice before the instrument is sent out. 

SBLC/BG for LENDING: 5M - 100M+ 

NON-LENDING: 5M- 500M

Larry @  lgpotter33@gmail.com

Note: Anybody looking to exchange currency can go directly to the FOREX market.


Thought: Understand that your insecurities are gifts to be unwrapped for personal growth and maturity.

What is a Proof of Funds/Verified Funds?

This service while not a loan, is a perfect inexpensive and quick way to JV with a strong partner to your current financial profile. This allows you to show reserves or buy time in your transactions with verified funds. 

There are different formats which may include online account access, phone/fax verification, bank letters, verification of deposit form (VOD), Swifts, TELEX, DTC or Euroclear screens and/or account statements.

NOTE: A proof of funds is NOT a loan. 

Final terms and conditions of any transaction are always determined on a case by case basis.

   lgpotter33@@gmail.com

Proof of Funds Programs

Their are many Proof of Funds - Verification of Funds providers.

Usually, the Minimum is $100K - Maximum is $500M

For some, All funds are seasoned.

With some providers, the funds are in a bank account in your name. No piggy back accounts.

Service is Guaranteed by Some.

Can be used for any purpose including:

• Net Worth Requirements
• Proof of Collateral
• Liquidity Requirements
• Show of Down payment
• Bond Requirements
• Blocked Funds for Investments
• Cash Collateral
• Escrow Deposit

NOTE: This is NOT a loan. This service is providing Proof of Funds.

Final terms and conditions are always determined on a case by case basis.

   lgpotter33@@gmail.com

Brokers, intermediaries protected.

DISCLAIMER: Poster is not a Securities Dealer, Broker or US Investment Adviser. Sender is a Consultant only and makes neither warranties nor representations as to the Buyer, Seller nor Transaction. Receipt of these documents is acknowledgment and acceptance that this is privileged, proprietary and confidential and will not be forwarded to any party(s) without prior written consent from the sender. Any email letter and any and all attachments and related documents are never considered to be a solicitation for any purpose in any form or content. This is intended to only be educational and you should do your own due diligence. We are not selling anything. Upon receipt of any such documents you, as the Recipient, hereby acknowledge this Warning and Disclaimer. These Confidential communications are protected under Gramm-Leach-Bailey Act 15 USC, Sub chapter 1, sections 6801-6809 and other laws addressing the disclosure of Non-Public Personal Information. Any misuse of this material will result in prosecution to the fullest extent of the law. Note: This communication and any documents, or files, attached to it, constitute an electronic communication within the scope of the Electronic Communication Privacy Act, 18 USCA 2510. This communication may contain confidential, or privileged information intended for the sole use of the designated recipients(s). The unlawful interception, use, or disclosure of such information is strictly prohibited under 18 USCA 2511 and any applicable laws.

What is a SBLC?

A SBLC or Standby Letter of Credit is a method of asset enhancement used to increase a client's investment potential.

A Standby Letter of Credit can be used internationally or nationally to support business transactions in numerous ways, which allows businesses to reach their investment project goals swiftly, securely and simply.

A SBLC is just a type of Bank Instrument that is issued to non profit organizations, individuals, trust, endowments, corporations, pension funds or to any entity that is payable.

The SBLC allows a client to accomplish their goals by substituting the credit of the bank for that of the client, for the purpose of facilitating business or trade.

There are basically two types: standby and commercial. The latter is the primary payment mechanism for a transaction, whereas the SBLC is a secondary payment mechanism.

Some of the uses of a Standby Letter of Credit (SBLC) include:

• Lessen common international trading risks
• Ease the establishment of new business relationships between companies and individuals
• Optimize cash flow by freeing up company capital which might otherwise be locked up as deposits
• Maintain capital for company business expenses
• Expedite trade and transactions both domestically and internationally
• Support the payment of financial agreement and/or obligations
• Help maintain investment plans
• Since the SBLC is normally less costly than other modes of guarantee and are simpler and faster, it reduces expenses

Normally, these instruments are issued from HSBC London, Barclays bank and DEUTSCHE BANK London and Germany.

               lgpotter33@@gmail.com

DISCLAIMER: Poster is not a Securities Dealer, Broker or US Investment Adviser. Sender is a Consultant only and makes neither warranties nor representations as to the Buyer, Seller nor Transaction. Receipt of these documents is acknowledgment and acceptance that this is privileged, proprietary and confidential and will not be forwarded to any party(s) without prior written consent from the sender. Any email letter and any and all attachments and related documents are never considered to be a solicitation for any purpose in any form or content. This is intended to only be educational and you should do your own due diligence. We are not selling anything. Upon receipt of any such documents you, as the Recipient, hereby acknowledge this Warning and Disclaimer. These Confidential communications are protected under Gramm-Leach-Bailey Act 15 USC, Sub chapter 1, sections 6801-6809 and other laws addressing the disclosure of Non-Public Personal Information. Any misuse of this material will result in prosecution to the fullest extent of the law. Note: This communication and any documents, or files, attached to it, constitute an electronic communication within the scope of the Electronic Communication Privacy Act, 18 USCA 2510. This communication may contain confidential, or privileged information intended for the sole use of the designated recipients(s). The unlawful interception, use, or disclosure of such information is strictly prohibited under 18 USCA 2511 and any applicable laws.

Facts About SBLC, POF and BG Services and Escrow

If a provider requires an escrow, to my understanding, it is not an advance payment because funds in escrow does not get released until the instrument has been verified and confirmed by receiving bank.

   

lgpotter33@@gmail.com

Who Needs A Proof Of Funds?

A proof of funds letter can help a business get additional financing for technology, real estate, high cost machinery, or construction by showing that there is money to cover the transaction.

The POF indicates legitimacy to all parties involved no matter what type of project.

A Proof of Funds is great when you want to prove that you’ve got the ability to pay outright, but you don’t want to use your own funds.

Most small or mid size companies that are positioned for growth do not have the financial ability to make their future plans happen. That is where an investor group with POF security can be the key to taking a business to the next level.

Keep in mind that this doesn’t mean that a business owner or entrepreneur doesn’t have to come up with their own funding, they do. Any serious business owner will have funds of their own to invest as well as a solid plan to get a return on theirr investment.

                 lgpotter33@@gmail.com