We are seeking resolution for all cases.
DRAFT
Replacing Personal Guarantees?
Areopa’s ethos and proposal
At the end of the day, if you need to provide a guarantee, then you should provide the things that you borrow the money for as the guarantee. It cannot be that you give, for example, somebody’s home or house if you are an IT company. No. It should be the IT that you make. That is what you have to do. There should be a causal relationship between those two.
Areopa is specialized in accounting for the causal relationship between intangible assets and money streams. We work together with a fund from which we give the commercial banks a guarantee for up to 100% of the value of what an organization borrows against their intangible assets.
Unfortunately, this is not always possible for all types of activities/business. We are primarily considering this approach for innovative SMEs with circa 100+ employees for this service, though there could be exceptions. Plus, it is conditional on a number of things.
We are going to, first of all, do a high-level estimation. We are going to check the present and future value of the intangible assets of that organization.
Based on our daily experience we notice that 85% of the knowledge is in the heads of the people and thus at risk as people can leave the company, get sick or become unavailable for other reasons. We will ensure that at least 50% of the key knowledge (the intellectual capital) is captured, stored and made re-usable even if the key knowledge carriers leave the organization.We are also going to do an innovation due diligence during which we are going to check that everything the company plans to do in the future makes sense and that their organizational and commercialization models are structured in a manner that will enable them to do that. In other words .. we will check if additional revenue streams can be ‘opened’ using the intellectual capital to create more revenue and that this works as a leverage.
We will develop a liaison plan where organizations in the supply chain that either supply or benefit from the key knowledge can take over the company under certain conditions (and based on Intellectual Capital Accounting we can put a realistic value on these assets in $ or in £).
We will take out an insurance policy to back up our plan that is based on the above three steps.
So it's a pretty intensive and costly analysis of the candidate who is going to get the loan.
Based on this analysis, if it all works out, we give the commercial bank a guarantee, a cash guarantee where the fund will be guarantor for 100% of all the money that they lend to the company plus the interest and costs if they cannot pay it back.