I am approached by around a thousand sponsors and operators a year wanting to fund their projects. I am flabbergasted by the way they expect to fund their respective projects with no clue whatsoever as to how the process works.
Just to set the record straight: We only back operators with a proven track record (no matter what the industry is) , a 10% skin in the game of the total funding amount they are seeking, and a clear cut strategy as to HOW to execute.
Short of these three initial requirements, no need to apply.
To be perfectly straight, we only want to work with business people who can make good “common sense” business decisions. The reason we say this is that over the years we have unfortunately encountered potential clients where their attorney was leading the client, not the other way around. As such, we only want to work with business people that do take legal advice from their attorney/law firm regarding legal contracts but, at the end of the day, it is the client with the courage and conviction alone that need to make the bottom-line business decisions that are best for their business.
Our process is designed to help reasonable clients feel comfortable with our company, potential funding solution, process, timing, and costs.
Our funding (BOTH debt and equity) is more flexible and less regulated than any conventional business financing. It is also a more complicated process than just getting working capital for your project or small business.
Advantages:
1. You maintain majority control of your project and avoid giving up board seats and banish MBA vultures telling you what to do.
2. You’re not restricted by bank regulations or bank’s need for syndication which gives you more autonomy and freedom
3. Less documentation and less bureaucracy than for a traditional bank loan means you can make more money faster (and way less frustration by eluding pencil pushers)
4. Negotiable and flexible drawdown and payback schedules which give you control of your financial destiny
5. No personal guarantees which means your personal and family assets are always safe.
6. No prepayment penalty means you don’t get punished for being successful
7. Very short due diligence process which means you get funded within 45-60 days
We at Blackhawk look forward to doing business with you and to continue being your resource for deals, capital, relationships and advice.
We were recently nominated as one of the Best and Most Active Family Investment Offices in New York. You can check the link at https://lnkd.in/eRYustfm.
If none of the above makes any sense to you or you are not in agreement, then apparently in your mind you have a really easy and a straight-forward project to fund with no apparent challenges.
In that case, we recommend that you go to your local bank and see what they can do for you if any.
