What's Hypothecated Here?

To hypothecate is to pledge money by edict to a specific purpose.

A word used around government debate and pitch where politicians ring-fence certain tax income for a particular, often pet, project.

(Not always of the pork-barrel kind note, although 'earmarking' is perhaps more generally recognised language.)

The timing of highlighting this term comes from the (quite rightly) sanctions enforced sale of a Russian oligarch London assets.

With three or four billion quid about to be put into a frozen bank account, there is a clamour for these proceeds to be distributed to worthy pockets. From those in Ukraine to people at home at the grassroots of the activity concerned.

Whatever the legalities of due process, all sides see such pronouncements as vote-winners, given that key local elections occur right now across the country.

In our solution selling space, the use of this word may well help distinguish us from others in the frame.

We all know about budgets. And the extent to which spend on what we offer is pre-signed off to use or non-budgetary expenditure, allowable within whichever criteria.

What the pledge of this type of spend brings into play, is also the dividends of what we may bring, or remove, over existing monies.

Those savings we unleash through workflow improvements and tech enabled reductions, or less commonly, the extra revenues we let them tap.

In my old days of selling to business owners, I recall with joy showing them how they could make more money through enhanced sales, then ask with a smile, 'what you gonna spend all that on, hey?!'

The introduction of the concept of hypothecated funds could well be the lever that resets your prospect's thinking, and sets you apart from competing alternatives.

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