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1. Is ICG a lender?

2. What sort of due diligence does ICG do?

3. How much does Inventory or Working Capital Funding cost through ICG? 

4. How long does it take to get approved for financing through ICG? 

5. Does ICG keep my inquiries confidential? 

6. How will Inventory or Working Capital Financing through ICG impact my company's day-to-day operations? 

7. If my company is in the direct response industry, would ICG own my show/infomercial? 

8. What types of industries does ICG Finance? 

9. Does ICG accept and/or issue Letters of Credit? 

10. Is there a minimum and/or maximum amount that ICG will fund? 

11. Does ICG take physical possession of the inventory?


1. Is ICG a lender? 

ICG is not a lender. We fund inventory by purchasing it directly from manufacturers and holding it in our name. When you have a firm buyer for the inventory, we sell it to you so that you can hand it to your customer. 

We fund working capital by buying inventory you have on hand, thus providing you with cash. When you find a firm buyer for the inventory, we sell it back to you so that you can deliver it to your customer.

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2. What sort of due diligence does ICG do? 

ICG performs its due diligence in four main areas: 

THE BUSINESS PROCESS: 

· Is there a replicable, scalable business process that is capable of liquidating the inventory?

· What is the proof that the business process is real?

· How has the process been verified?

· What is the likelihood of the process continuing in the future?

· Can the process be managed by others if necessary? 

THE PRODUCT: 

· What are the risks inherent in the product? How well covered are these risks by insurance?

· Can the product be defective, and how? What is the risk of the product being defective?

· Can the product spoil? What are the implications of the product spoiling?

· Can the vendor deliver the product? 

INVENTORY AND CASH FLOW CONTROLS: 

· Are appropriate inventory control measures in place?

· Is there a sufficient means to oversee the flow of cash in the business so that ICG is assured of receiving the proceeds from the funded inventory? 

LIQUIDATION STRATEGY: 

· Is there a viable inventory liquidation strategy in the event that the procurement agreement* is not honored by the client?

· What are the risks of the strategy? 

*The “procurement agreement” is the agreement that binds our Clients to buy all the inventory that ICG purchases on their behalf. 

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3. How much does Inventory or Working Capital Funding cost through ICG? 

ICG will charge you a 5% mark-up on all the inventory funded. If you decide to wait more than 21 days before buying the inventory back from ICG, then we will also charge you a 1.5% stocking fee per week. This means that ICG will charge you 1.5% of the value of any inventory still under our name after the end of the third week. 

In addition to the mark-up and stocking fees, there is a one-time fee associated with the costs of the due diligence process. This “processing fee” is usually about $3,500, but it can be paid in installments. 

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4. How long does it take to get approved for financing through ICG? 

Typically, the process can be completed in two to three weeks. However, the length of the process depends on the quality of your company's records, and the specifics of your business. 

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5. Does ICG keep my inquires confidential? 

ICG keeps all current or potential client's inquires absolutely confidential. We are very concerned with your privacy, and will not share your information with others without first having your express permission to do so. 

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6. How will Inventory or Working Capital Financing through ICG impact my company's day-to-day operations? 

ICG strives to keep changes to your business to a minimum. There are some informational and procedural changes that you might be required to make, but the magnitude of these changes depends on your business's level of organization, and the thoroughness of your documentation procedures. 

In general, you should be able to provide ICG with the following reports in an accurate and timely manner: 

· Product shipments 

· Product returns 

· Credit Card Processing 

· Inventory Level Reports; including: 

· Shrinkage 

· Physical counts 

· Parts and pieces 

· Product defects 

· Customer lists 

· Accounts payable updates 

· Accounts receivable updates 

· Media efficiency reports (if applicable) 

· Program profitability (if applicable) 

· Continuity programs (if applicable) 

Most of the companies that ICG worked with in the past already ran these reports periodically, although we help some of our customers implement them from scratch. These customers found that the reports helped them improve the efficiency of their inventory, financial and managerial controls. 

Furthermore, because ICG must rely on you to liquidate the inventory once we purchase it, we ask that you do not change credit card processors, bank accounts, fulfillment houses or vendors without our prior written consent. 

Lastly, a mechanism will be implemented to provide your company with inventory at your discretion in exchange for cash or credit card receipts. This mechanism will require you to submit purchase requests and reconcile sales receipts on a periodic basis. 

ICG strongly believes that these control mechanisms are a good business practice regardless of our participation in your company, and our clients have concurred time and time again. 

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7. If my company is in the direct response industry, would ICG own my show/infomercial? 

Inventory or working capital financing through ICG allows you to keep complete control and ownership of your show/infomercial. 

Nevertheless, ICG's procurement agreement provides us with a license for the necessary marketing rights to sell the inventory we purchased in the event that you cannot fulfill your obligations under the agreement (i.e. buy the inventory back from us). These rights are limited only to the inventory purchased by ICG. 

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8. What types of industries does ICG Finance? 

We have financed businesses across a wide variety of industries. ICG will consider doing business with most any company that has a proven business process that converts inventory into cash. 

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9. Does ICG accept and/or issue Letters of Credit? 

Yes, ICG can accept letters of credit from your final customer(s), and we can also issue letters of credit to your inventory's manufacturer(s).

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10. Is there a minimum and/or maximum amount that ICG will fund? 

Funds financed by ICG typically range from $50,000 to $500,000, although we are comfortable working with smaller or larger amounts. 

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11. Does ICG take physical possession of the inventory? 

The inventory is usually kept at a third-party warehouse or at a fulfillment center. When a good, longstanding relationship has been established between us and a client, the client may choose to keep physical possession of the inventory. In these cases there must be a very efficient control over the ownership of the inventory in the warehouse (i.e., a clear separation between inventory belonging to ICG and inventory belonging to the client). ICG reserves the right to conduct periodic on-site inspections. 

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