How FC financing works for BIG, page-63

Hey @chakay a general response to your post about the relationship with FCC.

I think I / we are mistaken to read into the $1,000pm membership fee in the Sponsorship Agreement Clause 20 from the first ASX response letter as being a customer signing up for a $12,000 video package. I thought this too.

I think what is happening is a customer is asked if they are interested in a video from BIG.

Depending on how the sales pitch goes a BIG salesperson is able to say we have a partnership with FCC that will allow us to shoot a video for you for free upfront. All you need to do is agree to a non-binding agreement that should you wish to proceed with the video you will expense it through FCC.

The FCC deal will extend to you say a minimum of $12k and need to be repaid at $1,000 pm.

The customer says yeah sure that sounds good why not. It's non binding and I'll get to see the video before I decide to buy it. If I don't buy it, it will get added to the BIG ecosystem.

BIG goes out and shoots the video, the client either accepts it or declines it. If its declined it still gets added to the BIG ecosystem as I said, which we consider to be valuable in building out the 'network effect' for BIG.

If the customer accepts it, FCC then consider the client's credit risk.

If FCC accepts the client then the video package is expensed through the FCC platform with a debit for the video package they chose.

As we know BIG already received 35% upfront, 41% security deposit is released to BIG, FCC already received 24%.

Now the client needs to pay the $1,000pm minimum membership amount which may include some interest component if payments are not kept. We don't know how this actually works and that's between the client and FCC. Hopefully the terms are favourable as that will mean its easier to get SMEs over the line when they really need to make that purchasing decision after the video is shot.

See my previous post re: conversion rates.

Interested to hear others thoughts on this.