Funded by EUSL
Funding tomorrows sustainable businesses
Part of EUSL Core
Care to Change the World
Introduction
We live in everchanging times and if nothing else the last few years have been proof of that. Since the explotion of social media and digitalization, mankind have moved away from tangible assets and moved towards something that has a value that is harder to define. Terms such as ’value driven’, ’horizontal’, ’green’ and ’social’ has quickly become key factors for how the world is driven.
For the more conservative part of the population, this is difficult. Especially for the wealthy, conservative people who made their fortunes on non-sustainable businesses. They don’t want to change but studies show that tomorrows investments are spelled E-S-G, Environmental, Social, Governance.
Funded by EUSL will be a European organization bringing in capital and knowledge to small and medium enterprises in the EU by creating bonds based on ESG-criteria, stipulated by the bylaws for the organization. This makes it simple for an investor, meaning the actual project doesn’t have to exist right now, but they know that whatever happens, their investment will go into an ESG-project. We are funding tomorrows sustainable and inclusive businesses through different programs that we create together with our investors.
Time, time and time again
Somehow we are always short of it. Some are spending more time telling others how busy they are, but most of us are just short on time, at all times. For us it started in 2008, when the Icelandic volcano had an erruption and for several days flights were cancelled all over the world due to it. Back then, something happened. People started with very short pickup times, meetings, conferences and seminars had very short foresight.
Funded by EUSL has a modern thinking about time. We remove what takes time and is considered difficult, doing the grunt work if you will, and have the financials available when needed. We want to remove the processing times that are usually several months.
Model
There are plenty of filters out there, in common terms brokers. The investors and financers can seldom be out in the public, as they would be swarmed with requests. Here is where a broker comes into the picture, going through each application and qualify them. First step is usually to bring them to either another co-broker or directly to the investor. If it passes there, it will take a long time to process the actual application, create and fill the bond. Most of the time its a syndication when it involves larger amounts of money
Funded by EUSL changes all that by working closely with reliable brokers. With the ESG-criteras, they know very well what to look after and what is required by an investor. Funded by EUSL is membershipdriven, meaning the brokers becomes members of Funded by EUSL. In essence this mean a broker have signing rights for a bond EUSL has already created and filled up. In practise this means a project can be funded in days, instead of weeks or months.
The brokers have to live by the bylaws of Funded by EUSL but besides that there is not really much to it. Funded by EUSL is a European organization with the EU as its home base. All projects have to be located here, or at least have some ties to it.
Process
The whole purpose with this model is to cut down on time. By allowing the brokers signing rights for a project they are free to sign and fund it themselves, without going to Funded by EUSL or an investor. The process is fairly short and be divided into the following four steps:
- Borrower sends in a request
- Broker goes over the documentation
- Broker negotiates the best deal for all parties
- Signing
There are quite a lot of paperwork and legal processes involved but Funded by EUSL works a lot with the governance part of ESG and will provide all parties with sufficient documentation to handle the process. When an agreement is made, funded by EUSL also uses something called the LMA process, which is an EU standard for moving large amount of funds from one country to another. This means all funds will have history and be accepted by all financial institutions upon arrival. It also mitigates all risks of money laundering.
To be and act as a member
Becoming a member is a straight forward process. As with all memberships, it includes a membership fee. Its an annual fee which for the first year includes one bond. Once a member of the Funded by EUSL organization, you represent us to 100%. See it as a franchise of sorts. Your task is to find clients who need funding in small or large projects, matching the ESG criteria defined in the bylaws. You will get support when needed and are free to negotiate your own deals. A membership in Funded by EUSL means a lot of freedom but also a lot of responsibility. Funded by EUSL is part of the European Social Label, verified by the largest companies in the world including Google, Meta and Microsoft. Also being part of an EU organization raises high demands on governance and ethics.
If you feel this is up your alley and wish to become a member of Funded by EUSL, please do not hesitate to contact us.
