Training Document No. 54

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Self-Liquidating Loan Program

What is a Self-Liquidating Loan?

A Self-Liquidating Loan (SLL) is a private financial transaction between two participants that will not be repaid until a list of specific criteria is satisfied. The self-liquidating loan proceeds can be utilized in a business venture to acquire start-up capital and to fund normal business activities like purchasing inventory. It is a short-term working capital loan that is repaid from the liquidation of inventories. Early in the twentieth century, commercial banks made only short-term loans, and self-liquidating loans were a common variety.

ValQuest Ads Inc. has decided to fund the business operations utilizing the Self-Liquidating Loan Program. Members may receive Value Certificates by loaning a small amount of money to ValQuest Ads using the SLL Program.

Value Certificates are created in the amount of the Packing Sheet and are placed into a Value Certificate (VC) Account. The VC Account will increase the Potential Value of the business. The issuance and delivery of Value Certificates to Members will liquidate the SLL. Value Certificates are one of ValQuest Ads inventory items.

The monthly SLL is deposited into the into the Advertising Unit (AU) Account. A percentage of the AU’s are used to calculate a member’s RV bonus and commission checks. The participating Distributors will be compensated for the Alpha Personal Commission (APC) from the RV Account. AUs are the smallest unit of measurement utilized to determine the size and scope of an advertising campaign.

Distributors will also be compensated from the Beta Account as the participating Distributor adds new participating Distributors to their organization. ValQuest Ads compensates our Distributors for supporting our Authorized Redemption Centers (ARC) as they redeem the Value Certificates. Value Certificates can be redeemed as a percentage of the cost of goods and services at our Authorized Redemption Centers.

SLL BOC Rules and Regulations

  1. Each distributor will earn up to their personal RV level from their organization.
  2. A Distributor must have a minimum of one Qualified Distributor enrolled on Generation-One to receive the BOC from Generation-One.
  3. A Member must have a minimum of two Qualified Distributors enrolled on Generation-One to receive the BOC from Generation-Two.
  4. 4A Member must have a minimum of three Qualified Distributors enrolled on Generation-One to receive the BOC from Generation-Three.

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