Or get a hedge fund to buy a bank shell, have it as an asset, and use that bank. If your startup fails, they still have the asset.
Or you may just need to have access to 13M, it's probably not the fee. So - you can just borrow 13M and use the 13M as collatoral. If you structure the deal right, it's 100% risk free. Moreover, you may be able to invest the 13M in which case you can still return an interest rate.
So you could find a fund with 13M, draw up the paperwork such that they put that in your company, but it can't be spent, and the 13M is effectively it's own collateral. Then pay the investors interest, plus some small coupon payment, or give them some equity for their risk free investment.
So long as the paid up capital isn't used for anything, it's a 'non transaction', i.e. it has no financial meaning.
That said, the 13M may be designated as collateral or some kind of requirement for the payments system.
No, because he isn't spending the money. He borrows 13M, and then the 13M just sits in an account, doing nothing, or earning say, the risk-free rate. There's no risk for the lender, because the money isn't going anywhere.
Except if the money gets used for reimbursements/damages that the new startup bank has to pay if it's mismanaged --- that is one of the reasons the money needs to be there, I assume.
No you get an asset worth x and use it as collateral against the loan valued as x. You'd have to pay interest on the loan, presumably from making a basic investment. It depends on what the requirements of that 13M are. But if it's just plain 'paid up capital' ... then the company could take the loan, 'owe' 13M, but then 'invest' the money back in the entity they borrowed it from! The regulators may not like this though. Depends.
Wouldn't "the bank itself" be the asset worth $13m? In the same buy-out as happens to a lot of sports teams, as long as you have friendly lenders, you can structure the deal to buy the asset, using the asset as the collateral (like a huuuuge car loan).
If it's always going to cost $13m to get a bank shell, then (although there might not be many buyers), the bank now has a $13m "thing" which they can take ownership of if it goes down the pan.
True, the 13M isn't the fee but its money that you need to have to start a bank. You don't need to spend it but you need it in case you have some damages/reimbursements.
I'm closely looking at partnering with a bank. I could possibly look at banks that traditionally don't have a lot of debit card sales and see if they are interested in what I have to offer.
Or get a hedge fund to buy a bank shell, have it as an asset, and use that bank. If your startup fails, they still have the asset.
Or you may just need to have access to 13M, it's probably not the fee. So - you can just borrow 13M and use the 13M as collatoral. If you structure the deal right, it's 100% risk free. Moreover, you may be able to invest the 13M in which case you can still return an interest rate.
So you could find a fund with 13M, draw up the paperwork such that they put that in your company, but it can't be spent, and the 13M is effectively it's own collateral. Then pay the investors interest, plus some small coupon payment, or give them some equity for their risk free investment.
So long as the paid up capital isn't used for anything, it's a 'non transaction', i.e. it has no financial meaning.
That said, the 13M may be designated as collateral or some kind of requirement for the payments system.