WLPC PREPAYMENT QUESTIONS
WHAT IS MY RETURN ON PREPAYMENTS?
You get double the value of your money back over five years in monthly payments from the WLPC income stream. If you prepurchase $10,000 you get a monthly income stream of $333. Prepayments are not a financial investment in the normal sense of the word but they are similar to an annuity. Doubling your money translates to a yearly return on investment of approximately 50% or a monthly return on investment of approximately 2.75%
HOW MUCH OF THE WLPC INCOME STREAM CAN I BUY?
You make an offer to WLPC and WLPC will let you know how much WLPC will accept. You can specify the products where your money is spent or allow WLPC to spend your prepayment on any product. WLPC does not start building unless it has funds to get to the prototype stage of any product. You will get your money back if within a year the construction of products you specified has not started.
If WLPC does not accept your offer your request goes on a waiting list.
HOW SECURE ARE MY PREPAYMENTS?
The security of prepayments is determined by the viability of WLPC software sales. You can examine WLPC expenditures, income and cash reserves at any time. Your prepayments are treated as unsecured liabilities. WLPC does not intend to borrow money nor seek equity investment.
WHAT IF WLPC DOES NOT MAKE ENOUGH SALES TO USE PREPAYMENT MONTHLY AMOUNT
Prepayments are only used to pay for WLPC services. If WLPC does not sell enough services to satisfy the prepayment terms the value of your prepayments is increased by your amount unused during the month.
HOW CAN WLPC OFFER SUCH GOOD TERMS?
WLPC software sales have a low marginal cost. WLPC software construction costs are low compared to traditional software systems. WLPC believes in sharing the profits from sales with customers and with other buyers of prepayments.
WLPC software sales are expected to exhibit viral growth with an increase in surplus because of the low marginal cost of each transaction and because WLPC customers have an interest in WLPC increasing sales.
WHAT HAPPENS IF WLPC RECEIVES MORE REQUESTS FOR PREPAYMENTS THAN IT CAN ACCEPT?
WLPC considers prepayment requests on a daily basis. If more requests on any day are received than WLPC needs then requests are filled in reverse order of size.
WHAT IF I NEED MY PREPAYMENTS BACK IMMEDIATELY?
WLPC will provide you with a way to make your intentions known to other prepayment holders. You make private arrangements using the WLPC platform to transfer the prepayments without telling WLPC.
WHAT ARE THE ACCOUNTING ENTRIES FOR WLPC PREPAYMENTS?
When you purchase a WLPC Prepayment, you create a long-term unsecured asset. WLPC records the amount as unearned income. When you use the unsecured asset to purchase WLPC software your unsecured asset becomes an expense to you and WLPC unearned income changes to earned income.
If you receive cash for part of your unsecured asset with a discount by selling to another prepayment holder, you record the discount in your books as a Capital Gain. If you sell undiscounted prepayments to another member, it is a transfer of Capital.
CAN WLPC PAY INVOICES WITH WLPC PREPAYMENTS?
If a vendor or a contractor wishes they can receive prepayments as payments for an invoice. The prepayment appears on the vendor's books as a long-term unsecured asset. WLPC records the amount as unearned income. When the vendor receives a payment from WLPC the amount is deducted from the unsecured asset account and transferred to the income account. In WLPC the unearned income is reduced and the amount paid becomes an expense.