Cash, Credit Investment A Partnership Approach Chris Cook Partnerships Consulting LLP .

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Money, Credit & Investment A Partnership Approach Chris Cook Partnerships Consulting LLP. What is Money?. Money = Barter Network + Credit + Value Unit Barter = Exchange of Value Credit = Time to Pay allows “ Split Barter” Transaction 1 – (now) Buyer receives Value receiving Credit
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Cash, Credit & Investment A Partnership Approach Chris Cook Partnerships Consulting LLP

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What is Money? Cash = Barter Network + Credit + Value Unit Barter = Exchange of Value Credit = Time to Pay permits " Split Barter" Transaction 1 – (now) Buyer gets Value accepting Credit Transaction 2 – (later) Buyer gives Value settles Credit Transactions require a " Value Unit"

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What is Value? Esteem can be characterized just in relative terms Value is the " Relativity of Desire" Value is " Money\'s Worth" Value might be Static or Dynamic Capital is Static Value Money is Dynamic Value, existing just in the moment of trade Economics is the Physics of Value

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Creating Value Assets or " Property" deliver a surge of Value accessible for Exchange eg arrive, influence plant, licensed innovation Individuals\' chance = stream of Value as work or administrations Credit is not Value but rather a case over Value " Asset-based" Finance is Investment " Deficit-based" Finance is Credit/Debt

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Investment - "Resource Based " Finance Ownership through " Property" in resources and their income streams Legal "wrapper" around resources and incomes Limited Liability Company Trust Limited Liability Partnership - " Open Corporate"

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Companies Statutory premise – Companies Acts Types Limited by Guarantee - " Not-For-Profit" Limited by Shares – " For Profit" Private Public GM eg IPS, CIC Issues Conflicts – " shareholder esteem" and CSR Management – the Principal/Agency issue

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Trusts Common Law basis– judge made Examples Canadian Income/Royalty Trusts Macquarie Bank plan of action Issues Risk Aversion Management Taxation Legal many-sided quality and cost

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Limited Liability Partnerships Q. At the point when is an organization not an association? A. At the point when it\'s a UK Limited Liability Partnership ("LLP") Q. What is it if it\'s not an organization? A. A corporate body: with constrained obligation: and… … er, that is it! Not to be mistaken for a US LLP Nearest connection US LLC

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Why an "Open" Corporate? Open to any "partner" to be a Member, the length of they subscribe to the "Part Agreement" A lawful "wrapper" – like a "trust", however without the disadvantages - for any advantages or incomes anyplace on the planet Tax straightforward

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The "Capital Partnership" "Capital User" Member "Capital Provider" Investor Member Jointly obtain a beneficial resource

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Return on Capital " Capital Rental" U ser pays Investor an income partake in Money (or "Cash\'s Worth") for whatever length of time that Capital is utilized Rental paid before due date is Investment Outcome "Co-proprietorship"

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Return of Capital might be returned over the long haul as yield (eg vitality) Capital Provider/Investor buys generation forward at today\'s cost Capital User gets premium free credit

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Community Partnership Community Capital Rental LLP Trustee Ownership % Investors Managers

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Community Partnership Trustee Member Investor Member Developer/Manager Member Occupier Member

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Community Land Partnership ( " CLP") Land freehold held in trust – like a Community Land Trust But no rent, no occupancy and no getting to create and keep up property Co-possession between " Occupier" and " Investor"

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CLP Example - £4m Investment Community resource - £200k swelling connected rental Capital Repayment £4m Capital cost, reimbursed more than 50 years £80k beginning Capital reimbursement = 40% of incomes so of 40% incomes (rather than £80k) reimbursed every year Capital Rental 2% at first = £80k or 40% of Revenues Reduces with Capital: following 25 years = 20% of incomes Community holds adjust of 20% (expanding) If Community has a terrible year so do Investors

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Community Energy Partnership ( " CEP") Asset held in trust Investors pay now for future vitality creation Developer/Operator submits no capital and shares generation, subsequently adjusting premiums Community gets premium free advance from Investors and adjust of vitality creation

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CEP – 1 MegaWatt Wind Turbine Cost £1m = 20k Mw/hrs at £50.00 Mw/hr 2,500 Mw/hr every year = 50k Mw/hrs more than 20 years ie 40% of creation sold to Investors Community " Co-proprietor" offers 40% of creation at today\'s cost for a long time allots 10% of generation to Developer/Operator gets Balance of half as vitality profit Investor " Co-proprietors" purchase vitality at today\'s cost substantial 20 years: beats gold!

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Credit - " Deficit-based" Finance Interest-bearing (from Credit Institutions) "Resource sponsored"/Secured by a claim on resources (home loan or "charge") unsecured Non enthusiasm bearing (" Trade Credit" from providers or staff)

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Mutual Credit – the " Guarantee Society" or " Clearing Union" " Common Bond" - geographic or utilitarian Sellers stretch out exchange credit subject to a Guarantee Buyers have " Guarantee Limit" pay concurred arrangement into " Default Fund" Service Provider works system and sets ensure limits gets membership/benefit charge from all individuals

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Guarantee Society Buyers Subscription/Service Charge $ Provision Pool Manager $ Trading and Clearing in $ and $\'s worth Default Rebate $ Repayment $ Subscription/Service Charge Sellers

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How it Works An offers thing to B for $1000 - 60 days credit B pays 1% every month arrangement into Pool B pays just $500 on due date Alternatives A gives more opportunity to pay An acknowledges deal installment of " $500 worth" A gets $500 from Pool and either Pool offers expansion to B, gathering $500 over concurred period B pays " Debt to Society" in hours at concurred rate; or Pool composes obligation off Combination of the above

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The Community Pool is not " contributed" in bank stores Pool puts resources into future incomes of group possessed resources eg future property rentals as well as vitality creation Dividend from pool to group individuals not able to pay, in fuel neediness and so forth and so on

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Conclusion Community Assets offer ascent to floods of sans debt " Money\'s Worth" accessible for Exchange Individuals\' Time constitutes " Money\'s Worth" accessible for Exchange Money\'s Worth flows on a Barter Network A shared certification brings about a " Clearing Union" where " Time to Pay" is without premium however with shared expenses and shared defaults.

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Consequences Money has no " fetched" when issued Public does not have to get to contribute A " National Equity" and also a National Debt Community Dividends from " Commons" resources in Community Ownership A Society comprising of a Partnership of Partnerships ie neither Hierarchy nor Anarchy however " Synarchy"

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