|
Welcome
to AFRICABIZ, 
Welcome
to AFRICABIZ HTML Email edition.Previous issue available at this
link
Loans available up to US$40million per project - Click here
Dear faithful reader,
HOW
FINANCING RESEARCH BROKERAGE WORKS
Dr. Quenum & Associates / Drexel Global Consulting, LLC are in the business of financing
research for more than a decade. Starting from 1999, they setup BusinessAfrica.net
to make use of the Internet. The formidable tool to promote, market and develop
their business worldwide. 24 hours around the clock.
Indeed, the Internet
lowers the costs to managing the business. Clients, loan researchers, make contact
easily through Businessafrica.net platform, read posted instructions and documentation
about financing and make hard copies as here
explained. When satisfied with what they read, they contact Dr. Quenum & Associates
/ Drexel Global Consulting, LLC by electronic mail.
Clients also forward Executive
Summary and other preliminary documentation to Dr. Quenum & Associates /
Drexel Global Consulting, LLC on a fly as attachments to their message sent through
Dr. Quenum & Associates's support/contact console - opening
a support ticket.
Everything done just punching the Submit Button from one's computer. It is
fast. Clients do not need to send snail-mail and wait for weeks to get a reply.
Therefore, some clients,
loan researchers (not all of them thanks God) expect a fast outcome for the result
of their loan application. They expect completion of the deal done through the
Internet and loan conditions (interest rate, loan period, grace period) sent to
them as soon as the application introduced to Dr. Quenum & Associates / Drexel Global Consulting, LLC
Unfortunately, Financing Research business does not work
that way! There is a great misunderstanding that we decide to clarify with this
delivery.
A
CASE STUDY TO FINANCING RESEARCH
Let
us consider the case of a Southern Asia company which requested a loan package
of US$ 70,000,000.00 to expand its business through the takeover of several gold
mines. We will name the company The Mining Co. The requested package
loan represents the first phase of Mining Co. expansion drive. The second phase
needs US$: 180,000,000.00
It is important to keep in mind the total
loan when Phase -I and Phase -II are implemented is US$: 250,000,000.00.
So Mining Co. introduces a loan request to Dr. Quenum & Associates / Drexel Global Consulting, LLC by electronic mail and Attached to it: 1- An Executive Summary. 2-
An Adobe PDF document describing and picturing the several mines that Mining Co.
wants to control.
The Executive Summary listed the Management team of
Mining Co. On paper everything looks perfect. The Chief Executive, the Technical
manager, the Finance Director have extensive experience in gold Mining. The Cash
Flow summary also looks good.
The Executive Summary and the descriptive
PDF document convince Dr. Quenum & Associates / Drexel Global Consulting, LLC, Ltd's management
that the request is a good one, which deserves introduction to financing partners.
Now starts the exploratory business of phone calls, emails and faxes
sent to partners financing sources in Asia, Europe and America. Some of them are
not available. They are on the move. Other have heavy workload. At the end replies
are obtained for the exploratory thrust only after two to three weeks. Meanwhile
the borrower growing impatient. We are at the Internet Age. Aren't we? Nowadays
everything done at the speed of the light! Please do notice that we have not taken
yet a cent from Mining Co. No upfront fess claimed by Dr. Quenum & Associates
/ Drexel Global Consulting, LLC from Mining Co.
For this project two trips to an European capital city were necessary to meet financing source, which expresses
interests in the venture. Traveling to meet a financing source's management happens
often during the exploratory period to introduce a loan request to a financing
partner. And that is normal. Internet or not Internet, there is nothing such as
face-to-face meetings to discuss and untangle misunderstandings.
After
the second meeting, the financing source accepts to take the loan file in consideration
and two weeks later we, Dr. Quenum & Associates / Drexel Global Consulting, LLC, got
a confirmation email asking for a meeting with the borrower in Southeast Asia.
Why Southeast Asia? In fact at Singapore, because the financing source has there
a branch bank with a desk specialized in gold-mining.
The financing source
lists the following items to discuss at the meeting place:
| 1-
Cash Flows of the takeover targets
2- Management team assessment
3- Production capacity of assets
4- Possible equity participation
and production purchase
5- Acquisition cost
6- Primary
and secondary exit strategy
7- Financing structure |
The
listing shows clearly the willingness of the financing source to consider
its involvement in the loan's structuring and financing.
Items N°
4 and 5 are a hint of their probable involvement in the financing. They are
ready to consider Equity participation and or buying contract. We celebrated
and sent an email / letter to Mining Co.'s management in which we exposed conditions
at which Dr. Quenum & Associates / Drexel Global Consulting, LLC will assist to finding
financing for their project. They read as follows:
| 1-
Attached is the draft of a Non Disclosure Non Circumvent Agreement (NDNC). Please
sign each of the two parts (Fees / Commission Payment Contract and Confidentiality
Agreement) of the NDNC Agreement in triplicate copies and send them back to Drexel Global Consulting, LLC at the address above mentioned, by Express Courier (UPS, DHL). A signed
copy will be sent back to you.
2- Once the NDNC Agreement fully
signed by both parties and released to Dr. Quenum And Associates / Drexel Global Consulting, LLC, Dr. Quenum And Associates / Drexel Global Consulting, LLC will start planning for the meeting
at Singapore with decision makers and representatives of the financing source.
3- Mining Co. to provide one air return full economy ticket
to Dr. Quenum And Associates / Drexel Global Consulting, LLC. Cleveland / Singapore or Amsterdam
/ Singapore depending on who of the top managers of Dr. Quenum And Associates
/ Drexel Global Consulting, LLC will be attending the Singapore's meeting.
4-
Mining Co. to pay for hotel cost and accommodation at Singapore first-class hotel
from day of arrival to departure date from Singapore for Dr. Quenum And Associates
/ Drexel Global Consulting, LLC's manager who attends the meeting.
5- We
are confident, since the preliminary discussions held with the financing source,
the meeting at Singapore will open the way to the settlement / Closing of the
deal, which may take place either again at Singapore or at Sydney.
6-
For the Settlement / Closing's meeting, Mining Co.:
a) To provide
two air return full economy tickets for two tops managers of Dr. Quenum
And Associates / Drexel Global Consulting, LLC. Cleveland / Singapore or Sydney and Amsterdam
/ Singapore or Sydney. And to pay for hotel costs and accommodation, in first-class
hotel at Singapore or Sydney, from day of arrival to closing date / departure
date.
b) Mining Co. to pay to Dr. Quenum And Associates / Drexel Global Consulting, LLC, before departure of their representatives to the Closing meeting at Singapore
or Sydney, a flat fee of US$: 10,000 (ten thousand United States Dollar).
C) Before Closing meeting, Mining Co. to sign on behalf of Dr. Quenum
And Associates / Drexel Global Consulting, LLC a PAY ORDER (Specimen attached as PAY ORDER.doc).
That Pay order given to the financing source bankers the day of loan Closing as
proof of fees and commissions owed by Mining Co. to Dr. Quenum And Associates
/ Drexel Global Consulting, LLC | As
you can see, everything laid down clearly. No string attached. There is no mention
of upfront fees. Fees payment when settlement date agreed on.
Mining
Co. management replied with a negative mail. Stating that they are real company
(insinuating that Dr. Quenum & Associates / Drexel Global Consulting, LLC are Internet
companies. Which is not true and if even true not illegal!). That they will not
pay for people to make trips all over the world. That they will not pay upfront
fees. Which we have never claimed for.
Obviously, Mining Co.'s management
had not read our letter and the attached documents (NDNC and Pay Order's wording).
Drafts of the two parts of the NDNC Agreement are here
for your attention. You will notice that fees / commissions paid to Dr. Quenum
& Associates / Drexel Global Consulting, LLC only at Closing date. Not before. So there
is no any upfront fees' claim from us.
In fact, Mining Co. was expecting
us to release our financing source information and contacts' names just like that.
For nothing.
In his rude letter addressed to us, Mining Co.'s management
expresses astonishment that Management and Cash Flows mentioned as items to discuss
at the Singapore meeting. They consider the Executive Summary self-explanatory.
It "shows" the management is competent with extensive experience in
gold-mining. Full stop. And why travel long-distance? (for us not for them as
they are next door to Singapore!). As if when they request a loan from their city's
bankers, the management of the bank comes to their office to beg to finance the
business!
This attitude of the borrower is common. Once borrowers
introduce their financing research request for US$ 10, 20, 70 or 100 million and
more, they are convinced that we will fall all over ourselves to take the business.
They believe they are giving us the opportunity of our lifetime. A big deal not
to be missed. Therefore they expect everything from us. At no cost for themselves.
Mining Co.'s management states in its rebuttal letter that they do not
sign any document before they are 100% sure to getting the loan. Which means that
they will not sign the Non Disclosure Non Circumvent Agreement.
So
we replied to the rude letter, explaining point by point the why of the items
to discuss at the Singapore's meeting.
MANAGEMENT
COMPETENCE IS PARAMOUNT TO LENDERS
Everyone
knows that an Executive Summary or even a Business Plan can be sexed up, that
is drafted in such a way to make everything looks perfect. Therefore,
lenders used to grill borrowers about the management experience to dig out the
truth. And
nothing better than a face-to-face meeting to do that.
The Cash Flows item to discuss (please
remark the "s" at the end of "Flows") means that all
the Cash Flows of the takeover targets will be examined to detect possible flaws
and find solutions on how to adjust costs and reduce Cash Flow's leaks. Which
justifies point 5 of items to discuss: Primary and secondary exit strategy. The
Executive Summary introduced to us exposed only briefs about Mining Co.'s Cash
Flow.
As odd as it
may sound to you, the rude rebuttal letter from Mining Co. management did not
made any mention of points 4 and 5, which deal with Equity participation of the
financing source and possible purchasing contract of the production.
NON
DISCLOSURE NON CIRCUMVENT AGREEMENT STANDS AS A PROOF THAT WE HAVE THE CONTRACT
TO DO THE FINANCING RESEARCH
Now why
Dr. Quenum & Associates / Drexel Global Consulting, LLC request a Non Disclosure Non
Circumvent Agreement before releasing their financing source information and contacts'
names to a borrower?
Our Non Disclosure Non Circumvent Agreement
(NDNC) is in two inseparable parts covering 1- The Confidentiality for
the release of the financing source information and contacts' names; and 2-
Fees and Commissions Contract. It protects our interest in case of loan
success and closing. It is the guarantee that fees and commission owed to
us are fully paid at the Closing of the deal. Clear and simple.
Building a database of reliable
financing sources is hard work. Time-consuming and cost-effective. It took us
10 years to do so! Financing sources' databases are the assets of financing
research's brokers. And they have to be paid for their hard work. They cannot
give away information about their financing sources for peanuts!
Therefore the need of a NDNC Agreement.
Remember
the loan in question concerns the first phase of the project. There is a
second phase, which needs also financing. That is: US$: 180,000,000.00
What
will happen if Dr. Quenum & Associates / Drexel Global Consulting, LLC
do not protect their valuable assets (the financing source information released
to Mining Co.) by a NDNC Agreement? Mining Co. may run away with the information
as soon as they got it and make the deal at our expenses. Do you think that's
normal? We are not stupid. And what happens to our interests if they do
make use of our financing partners for the second phase without keeping
us informed and compensated?
That is what we explained to Mining
Co.'s management. We were burned 12 years ago when newcomers to the trade. Now
we make sure that our interests are protected by a NDNC Agreement. We follow
a simple rule: no NDNC Agreement with us, no business with us
And
we asked Mining Co.'s management, in our reply to their rude rebuttal mail, if
they are expecting us to bear the expenses of trips undertaken to further analyze
and make bankable their project?
THERE
IS A SAYING IN THE TRADE: "YOU GET WHAT YOU PAY FOR"
Here is a company, which wants to borrow US$: 70,000,000.00 and is not
ready to bear the cost of one of the real persons who undertook preliminary negotiations
with a promising financing source. Ready for equity participation and production
purchase.
Total cost of the trip and accommodation at first meeting
at Singapore: No more than US$: 2,500! Total cost for Loan Closing's trip: US$:
5,000 maximum. And the US$: 10,000 fees we claimed before the Closing meeting
justified. Please do notice that no compensation claimed for the first meeting
trip to Singapore. Dr. Quenum & Associates / Drexel Global Consulting, LLC's
top management would be leaving their working base for a 4 to 7-day trip without
compensation. US$ 10,000 fees claimed before the Loan Closing's trip at Sydney
or again at Singapore will cover the days of absence from their base and other
incurred exploratory expenses above outlined.
We know that the total of fees we are claiming
for, introducing a financing source ready to take equity participation and
or entering purchasing contract, is far below the competition's rate, which
often is around US$ 100,000.00 - for financing magnitude similar to the one
in question in this case!
WE
ARE ABLE TO ASSIST FINDING FINANCING IN THE SIZE OF US$: 70,000,000.00
UPWARDS. BUT WE DO NOT GIVE AWAY OUR ASSETS (FINANCING SOURCE INFORMATION AND
CONTACTS) FOR NOTHING.
This story
about Mining Co. is a true one. It happened. And it summarizes the misunderstanding,
which sometimes arises between some borrowers and financing brokerage companies.
We decided to expose it to make our clients aware of our procedure and conditions
to assist in financing research:
| 1-
A face-to-face meeting with financing source is compulsory.
2-
Said meetings to take place somewhere in Europe, Asia or America (sometimes one
meeting is not even enough! One is enough if Business Plan and borrower's management
team which attends the meeting is convincing and know well the bones and flesh
of its business.)
3- A representative of Dr. Quenum & Associates
/ Drexel Global Consulting, LLC to attend; and costs of trip and hotel accommodation chargeable
to borrower.
4- Indications to Loan Conditions (interest
rate, loan period, grace period) released at first meeting.
5-
There is no way for Dr. Quenum & Associates / Drexel Global Consulting, LLC could
release financing source information and contacts' names before the first meeting
took place and a Non Disclosure Non Circumvent Agreement signed with borrower.
6- Dr. Quenum & Associates / Drexel Global Consulting, LLC to attend the
Settlement / Closing session against:
a)- Two Full Economy Air-Return
tickets provided by borrower to Dr. Quenum & Associates / Drexel Global Consulting, LLC.
b)- A Pay Order covering the amount of fees / commissions (related
to the Loan Success) and stated
in the NDNC Agreement (Confidentiality Contract) to be released by Borrower
to Dr. Quenum & Associates / Drexel Global Consulting, LLC
7- Before
Dr. Quenum & Associates / Drexel Global Consulting, LLC agree on
final arrangement for the loan Closing session with financing partners,
Dr. Quenum & Associates / Drexel Global Consulting, LLC to get compensation fees from
borrower for all preliminary expenses (trips to financing sources headquarters;
absence days from their working base - More or less a flat fee of US$ 10 to
15,000 - ten to fifteen thousand United States Dollar.) |
We are confident we have reliable financing sources and, thanks God, several financing
research businesses. We deliver and expect payment for our hard work of finding
financing in the size of US$ 70,000,000.00 upwards.
We deliver because
when decision made at our level to take care of a loan request we are already
certain - at 51% - that one of our financing partners will show keen interest
to take part in the financing venture.
After preliminary discussions
and meetings with the most suitable financing source (willing to take action)
our certainty for the loan completion is 55%.
And when said financing
source confirms its participation to a first meeting with the borrower, we now
reach 60%.
That is when we contact the borrower and start making arrangement
for the signature of a Non Disclosure Non Circumvent Agreement / NDNC,
and taking necessary steps for a trip to the first meeting place).
When a borrower signs the NDNC Agreement;
provides trip ticket(s) and attend the first contact-meeting with the financing
source representatives, it is up to his management team to do the rest of the
job further convincing the financing source to engage in project's
financing.
Borrower's management team attending the meeting should know the bones and
flesh of their business. They have to be prepared to give the best and accurate
answers to questions and proposals put forward by the financing source. They
have to produce original copies of Security,
Bank Guarantee and Collateral documents to backup their loan request. (Click
here for Frequently Asked Questions about Security, Bond and Collateral)
It is up to the borrower's representatives at the first
contact-meeting to perform well and raise the percentage of success for the deal
to near 80%. Dr. Quenum & Associates / Drexel Global Consulting, LLC are available
to assist borrower prepare for the meeting and perform accordingly, giving advises
and making suggestions to improving the quality of Security and collateral offered.
Because, everything said, the final guarantee to Loan Closing / success boils
down to the kind of Security, Collateral or Bank Guarantee offered.
The Security offered could be backed and or enhanced by a Financial
Indemnity Bond to increase the chance of Loan Success. Dr. Quenum & Associates
/ Drexel Global Consulting, LLC are available to study and propose Bank Guarantee enhancement
(Financial engineering).
Now the financing source's decision makers
return to their headquarters to take final decision to engaging in the deal and
complete paper works. The final decision within a frame time of one week to
three months.
Meanwhile if no Act of God (Coup, collapse of
an international foreign exchange currency, terrorism acts, catastrophes, floods
and wars) occurs and hampers completing the financing, the success for the Closing
session may reach 90%.
There is no certainty of 100% success
in financing research business before the Closing session takes place!
Anyone who wants to be sure at 100% that he will get a loan before introducing
a loan research's request to a financing brokerage company may just stay put.
No risk, no success in any line of business!
So you see, even if
first contact made through the Internet, to complete a loan request through the
Internet is impossible!
WE
KNOW WE ARE COMPETITIVE
However,
once Dr. Quenum & Associates / Drexel Global Consulting, LLC attend the first contact-meeting
between the borrower and the financing source, the success of the borrower's project
become their constant concern. They dig into their expertise in financing research
engineering to make the deal a final success.
Loans available up to US$40million per project - Click here
"CONTRIBUTOR'S
GUIDELINES" are
available here.
We invite you to contribute to AFRICABIZ ONLINE MONTHLY ISSUE - with articles
related to "How Africa Could Bridge The Developing Gap".
Many
thanks for subscribing to Africabiz. See you on June 15, 2003.
Dr.
B.M. Quenum
Click here for contact & support console
|
| Business
Opportunities
FLOWERS AND FRAGRANCE PLANTS AGRIBUSINESS AS INCOME BUILDING POWER FOR AN AFRICAN
COMMUNITY / PART III: TECHNIQUES TO PRODUCING ESSENTIAL
OILS
Previous issue gives briefs
about the characteristics of four plants, which are the most used to produce essential
oils - Geranium, Citronella, Eucalyptus and Lemongrass.
Malawi is
doubtless (as here
explained) the destination for investors interested to setup essential oils industries
on medium and large scale basis. They can quickly start the operation. Raw materials
are aplenty and costs competitive i.e. salaries of hands and staff, availability
of various taxes and fiscal incentives granted by Malawi's government.
The production of essentials oils is a complement to the delivery
dedicated to nutriments and supplements; as essential oils from Lemon grass
provide the basic raw material (citral) for the production of Vitamins A and E.
- BRIEFS ABOUT PRODUCTION TECHNOLOGY
The
condition to develop essential oils' industry, on small, medium or large-scale
industrial basis, is of course the availability of the raw material. The agricultural
development of the raw materials (plants, seeds, nuts here
listed) used to produce essential oils are not exposed in this delivery. People
interested in the matter should refer to other sources for data and information.
There are all kinds and size of steam distillation apparatus and equipment
available for sale to producing essential oils. They are based on the principle
shown on the diagram below: [Courtesy of Maison
Mousse]
 |
| Schematic
Diagram of A Steam Distillation Unit | Description
of the ingredients of the distillation are here
extensively exposed. There are in the trade apparatus and equipment from 2 liters
of countenance for the primary boiler up to several hundred liters. Pricing ranges
from US$ 300-400 upward each. Next issue
deals with a small-scale operation with only 2 liters of countenance for the boiling
vessel.
Adobe
Acrobat Reader is available here
For
more details on the international trade of Essential Oils visit following link
Control Your Desktop
HOW
TO BACKUP YOUR FAVORITES FOLDERS
There are on the Net score of programs that backup the Favorites' folder. [Search
for Microsoft Outlook or Outlook Express Backup tools in your search engine].
However, in line with what we recommended
about Total Commander (Formerly named Windows Commander)
Windows Commander / Total Commander is a must have. It features several utilities
packed into a single tool that improves your productivity (FTP utility with Server
to Server possibility, User-friendly File Management tool to move, copy, synchronize,
compare, split and recombine large files; two horizontal or vertical panels, small
footprint and independent of system's Registry).
-
MAKE A BACKUP OF YOUR C:/WINDOWS/FAVORITES USING TOTAL COMMANDER
|
1- Create in partition D:/ or E:/ a new folder named for instance D:/Favorites_BackUp
2- Open C:/WINDOWS/FAVORITES at the left side panel and D:/Favorites_BackUp
at the right side.
3- Highlight all files and Folders in C:/WINDOWS/FAVORITES
and Drag-And-Drop them into D:/Favorites_BackUp
4- Once you
Reinstall your operating system just do the reverse: Drag-And-Drop files and
folders in D:/Favorites_BackUp into C:/WINDOWS/FAVORITES to restore your favorites
URL. |
Make sure to often update often D:/Favorites_BackUp
|
