Isn’t the idea of ‘renting’ a license considered wrong? Could it have legal ramifications if we rented a license?
Allow us to explain here (in brief):
- We don’t rent the license per se, we use that term so the client understands what is being offered.
- The PLH (Principal License Holder) sponsors the project of the client.
- The project has to be in the same vertical and business, in which the PLH is in. If the PLH is in the business of pizza, the client can be in pizza delivery, pizza boxes, etc. The client cannot sell stereos. That is literally tangential to the vertical the PLH is licensed for.
- The PLH is the Program Manager. They handle everything, including funds, processing, compliance, etc. Think of the PLH launching another project/product.
- We’ve been vetted, and given a clean bill of health by various regulators (think North Carolina, Illinois, Florida, Texas, California, and Washington state).
- We’ve used these past experiences to further better the model.
- The Client that is seeking to ‘rent’ the license essentially ONLY does 1st level of customer support, pre-funding, and sales/marketing.
- The signups, KYC, customer ownership, legal contract, etc. are all with the PLH.
- In certain cases, where the match is 100% between the PLH and the Client, the Client may opt to become an authorized agent/delegate of the PLH.
- We’ve worked with over 20+ PLH
- We also work with many banks, credit unions, community banks, and trusts to do the FBO arrangements as well.