Alternative forms of raising funds cannot work for little Investment projects.
Alternative Finance structure is based on bankable assets normally with two available options: 1) to trade the Asset on the Secondary Financial Market by licensed/regulated traders or 2) to sell the Asset to a private buyer (this option is commonly named ‘Monetization’). Generally speaking the market has appetite for assets with a minimum face value of 10 million EUR/USD/GBP, then it is easy to understand that it does not work for minor Assets or Investment value.
The Client must have finance knowledge about the possible Alternative Finance banking transactions.
It needs that the Client shows to have an appropriate finance knowledge and also he must know about how the principal Depositary Trusts and Clearing Corporations works and about the work of a Trade Desk manager as well. He needs to have a basic knowledge about the process of liquidating such assets by converting them into legal tender and which is the role of collateral securities issued by leading global banks. Now, according our experience very often a Client is not fully aware of the process to start such financial transactions and this is why we advise that it would be better the lawyer and/or the financial advisor to contact us on behalf of the client company.
In the last years a huge number of incapable people and scammers try to fraud non-expert clients.
Because in the last years a growing number of Investors and Asset Owners started to have interest for the many finance opportunities of Alternative Finance, also a huge number of incapable people – or worse – scammer people started to use the Internet and Web Platforms to present themselves able to close a positive transaction concerning bankable assets. Normally the fraud scheme is to ask for an upfront fee but there are also some fraudulent organization much more sophisticated. And these incapable and scammer people are the same people that try to discredit the few professional players on the market who are truly capable of closing this type of financial transaction.