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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 1527
Experience:  Practicing Attorney with 10 years experience
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I have a question about what is required in partnering up

Customer Question

I have a question about what is required in partnering up with a bank to be able to facilitate powering an app that would be a digital wallet/online money transfers similar to PayPal/ Venmo/Square Cash? I have built an app that can do this but need to know how to get to the next step in the process having run out of cash. Can you give me advice please?
JA: You just pay a $5 deposit now and the rest only when you get a reply from the Corporate Lawyer. All of this is 100% satisfaction guaranteed, so you can get a refund if you're not happy for any reason. What state are you in? And have you consulted a local attorney?
Customer: TX. No I have not
JA: Has anything been officially filed? If so, what?
Customer: Nothing yet
JA: Anything else you want the lawyer to know before I connect you?
Customer: No
Submitted: 1 month ago.
Category: Business Law
Expert:  Asad Rahman replied 1 month ago.

There are a couple of approaches. You can solicit investment from investors but they would expect ownership. You could apply for a business loan with a bank or line of credit. You could use your own assets of collateral or offer to pay certain royalties as collateral.

Customer: replied 1 month ago.
I know that I can use my own assets or get a line of credit. I am trying to partner up with a bank because of the licensing requirements in the US to do this type of business. Are these worries warranted? Are there any special licensing requirements? I have already spent a lot to develop the app to where it is right now. What would be required to be fully functional without having to elicit investors? My thought process was to partner up with a smaller bank where I can leverage their systems for security and licensing issues for a transactional fee. Could you please advise on a general road map and what would be required?
Expert:  Asad Rahman replied 1 month ago.

No, getting business permits is not that difficult. I think you would be better served contacting investors or existing software companies. I have not seen banks be that involved in the operation of a business so I do not recommend that as an approach.

Customer: replied 1 month ago.
1. When you say existing software companies, who do you mean? I have already built a platform.2. What I have read is that to be licensed to do money transfers in the 44 states in the US that allow this requires license registration in upwards of $50 to $100 thousand in the major states plus bond requirements. I don't have that kind of money.3. How does PayPal facilitate transfers between different bank accounts without having access to the individual banks systems and what legal requirements does that entail?
Expert:  Asad Rahman replied 1 month ago.

I am going to opt out so that one of our IP experts can possibly help.

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