Capital transformations
The same routes written as transformations over the institution's financial state rather than as products. A route list says vendor terms satisfy cash-position, which is what a grant says too; as a transformation the vendor term has a cash effect of zero and moves an outflow later. Written this way the rights compose, so two routes can each be admissible and not be admissible together, and the order stops being arbitrary.
- transform
- approve-demand
- family
- internal
- requires
- declared-demand
- consumes
- grants_rights
- obligations
- reversibility
- reversible
- duration_months
- 0.25
- notes
- 65 budget requests are drafted and none approved. Approval is an internal authority act with no counterparty and no cash effect; it unblocks three routes
- transform
- operate-and-evidence-revenue
- family
- internal
- requires
- consumes
- grants_rights
- obligations
- reversibility
- reversible
- duration_months
- 3
- notes
- revenue history is produced by operating, not purchased. It is the longest unavoidable step in every path that needs it, so the binding constraint it imposes is time
- transform
- secure-match-partner
- family
- partner
- requires
- declared-demand
- consumes
- grants_rights
- obligations
- reversibility
- reversible
- duration_months
- 2
- notes
- no stake or merchant_claim records a committed sponsor, so this is unpriced rather than free
- transform
- internal-committed
- family
- internal
- requires
- consumes
- grants_rights
- obligations
- reversibility
- reversible
- duration_months
- 0
- notes
- the institution's own money. Evidenced capacity is zero rather than unknown, so this is the one capital step whose cash effect is known -- and it is nothing
- transform
- sponsor-prepayment
- family
- sponsor
- requires
- match-partner
- consumes
- grants_rights
- sponsor-recognition,refund-claim
- obligations
- delivery-obligation
- reversibility
- costly
- duration_months
- 6
- notes
- revenue brought forward, carrying delivery obligation rather than interest. Refundable, so costly to unwind rather than impossible
- transform
- vendor-terms
- family
- vendor
- requires
- approved-demand
- consumes
- grants_rights
- trade-credit-claim
- obligations
- vendor-repayment
- reversibility
- reversible
- duration_months
- 3
- notes
- the route table says this satisfies cash-position. As a transformation its cash delta is zero: it moves an outflow later and adds no money. Declared beside a grant under one label, the two were indistinguishable
- transform
- grant
- family
- grant
- requires
- approved-demand,revenue-history
- consumes
- unrestricted-use
- grants_rights
- clawback-claim
- obligations
- reporting-obligation,use-restriction
- reversibility
- irreversible
- duration_months
- 12
- notes
- a taken grant restricts the use of what it funded and cannot be handed back to recover the freedom. Irreversible in the sense that matters: the path cannot walk back past it
- transform
- equipment-lease
- family
- lease
- requires
- revenue-history,collateral-free
- consumes
- collateral-free
- grants_rights
- first-lien-equipment
- obligations
- lease-payment
- reversibility
- costly
- duration_months
- 36
- notes
- avoids a capital outlay rather than supplying capital, and takes the equipment lien on the way past
- transform
- bank-debt
- family
- debt
- requires
- revenue-history,collateral-free,unrestricted-use,external-capital-route
- consumes
- collateral-free
- grants_rights
- first-lien-all-assets
- obligations
- debt-service,covenant-reporting
- reversibility
- costly
- duration_months
- 60
- notes
- requires external-capital-route, which is UNKNOWN because no capital provider route has ever been asked. Unreachable for a market reason, not a credit one
- transform
- community-equity
- family
- equity
- requires
- legal-entity
- consumes
- grants_rights
- board-observer,liquidation-preference
- obligations
- reversibility
- irreversible
- duration_months
- 0
- notes
- ownership conceded does not come back. Duration is zero because it never ends, which is the opposite of a short instrument and reads the same in a number
- transform
- revenue-share
- family
- revenue_share
- requires
- revenue-history
- consumes
- grants_rights
- revenue-first-claim
- obligations
- revenue-remittance
- reversibility
- costly
- duration_months
- 24
- notes
- pledges future revenue rather than assets. Collides with an all-asset lien over which claim sits first, which is a conflict no single row could state