Mpower Brands’ Revolutionary Approach To Early-Stage Business Financing

April 2, 2012 - PRLog -- D.J. Sherman, the President of Mpower Brands Partnership knows how scarce equity capital for a young, aggressive company is. That’s why he had to create a unique non-bank, non-venture capital approach which is optimal for stretching a small sum of private capital to launch and successfully grow a very ambitious international venture.

“My goal is to give our equity partners the safest recovery and ROI on their capital as quickly as is reasonably possible. We conserve their precious equity contributions by allocating them to such intangibles as professional fees, marketing, media, branding and initial design; these are critical expenses which don’t have traditional collateral to support them.

On the other hand, substantially all of our manufacturing and sales costs will be addressed using trade financing. Too many entrepreneurs do not understand that confirmed purchase orders and creditworthy accounts receivable are collateral items that don’t require any waste or risk of equity,” said Mr. Sherman in a company meeting.

“Yes, this transaction-based financing is expensive, and it will certainly cost us more than typical commercial bank borrowing rates. But we are prepared to accept this increase in the cost of goods sold in order to conserve and protect the equity which our supporters have entrusted to us in the roll-out of our first new product, the MPower Escape Case. {see more about this product by going to http://www.MPowerEscapeCase.com.} There is virtually no limit to the amount of sales which we can generate and fulfill using this fiscal strategy.”

In parting, Mr. Sherman added, “Companies don’t go bankrupt because of leverage. They go bankrupt because they don’t generate sufficient sales at a sufficient margin in order to repay the money that they borrow. They wind up borrowing to cover deficits instead of to facilitate growth.”

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