In plain English, assume you have ‘outsourced’ all the aspects of the legal, compliance, technical, banking, payments processing, record keeping, reporting, money flow handling, monitoring, and transaction processing to a 3rd party. This 3rd party has the license.
They will do all this under YOUR BRAND NAME. Only thing is, that they need to legally mention somewhere on your website, that the services are being legally provided by them. Like “Powered by ABC License Holder”.
They will do all of the above without you touching the money, i.e. you are absolved of any legal responsibility, and the only thing you have to do is marketing, customer support, and put up the pre-funding money.
We charge a fee to broker a deal for you, i.e. we will be using the Regulatory Coverage Form submission you did, along with the Term Sheet Consideration Form that you submitted, and find you a willing licensed partner who would be able to provide you with these services, with a near match or exactly matching your expectations as requested in the term sheet.
You will liaise directly with the provider and be able to launch your service in one of three options:
- Use their tech stack (API) and build your app on top of it.
- Use their white-label solution (web &/or mobile, depending on the solution provider) and continue with that.
- Use their white-label solution (web &/or mobile, depending on the solution provider) till such time you have developed your own solution using their API.
The terms of our engagement are success-based, with a one-time non-refundable application fee. As time is a precious commodity, the only limitation that is placed here is that both ourselves and the solution providers EXPECT you to know the nomenclature and business vernacular of the industry. Neither of us will take time to explain concepts and terminologies to you. You are expected to be fully versed in that.
We have spent many hours putting out educational/information-filled videos on the subject matter. There are over 150+ videos that explain all these concepts on YouTube that you can possibly ask about this business.
The channel can be accessed here: Faisal Khan’s YouTube Channel: http://bit.ly/FKYoutubeChannel
The licensing, and all allied aspects of the business are provided by the solution provider. You have to provide the 1st level of customer support for your brand, sales & marketing effort, and pre-funding money. Needless to say, whatever the solution provider will charge you for having such a joint-deal in place, you will pay a subscription for that based on your Term Sheet Consideration.