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Trading And Investing In & Out Africa

ISSUE 49 - VOL 1
MAY 15 - JUNE 14, 2003

Dr. Bienvenu-Magloire Quenum
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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 deliver
y.

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 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. Borrowers should not expect loan to be closed by the Internet as here briefly stated

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)- Copies of 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 (1) financing group, and (2) to Dr. Quenum & Associates / Drexel Global Consulting, LLC - And to be enforced on the Loan Closing Date.

c)- Copies of Pay Order covering the cost of Business Plan drafting or improvement undertaken by Dr. Quenum & Associates on behalf of project promotor/ owner to be released by Borrower to (1) financing group, and (2) to Dr. Quenum & Associates / Drexel Global Consulting, LLC - And to be enforced on the Loan Closing Date.

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$10,000 to US$15,000 - ten thousand 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.


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 100% sure 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



More on  Insurance Guarantee


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

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.

MORE ON ESSENTIAL OILS
1- Essential Oils Desk Reference
By Essential Science Publishing (Hardcover - Oct 2007)
2- The Complete Book of Essential Oils and Aromatherapy: Over 600 Natural, Non-Toxic and Fragrant Recipes
By Valerie Ann Worwood (Paperback - Mar 1, 1993)
3- The Essential Oils Book: Creating Personal Blends for Mind & Body
By Colleen K. Dodt (Paperback - Jan 3, 1996)
4- Essential Oils Pocket Reference 3rd Edition (Spiral Bound 2004, 3rd Edition) (Spiral-bound - 2004) - Unabridged
5- Releasing Emotional Patterns with Essential Oils
By Carolyn L. Mein (Paperback - Sep 1, 1998)
6- Essential Oils Integrative Medical Guide: Building Immunity, Increasing Longevity, and Enhancing Mental Performance
By D. Gary Young N.D. and Ronald M. Lawrence M.D. Ph.D. (Hardcover - April 1, 2003)
7- Quick Reference Guide for Using Essential Oils2006 10th Edition
By Connie and Alan Higley (Spiral-bound - 2006)
8- Magical Oils by Moonlight: Understand Essential Oils, Their Blends and Uses; Choose the Appropriate Day
By Maya Heath (Paperback - April 2004)

Adobe Acrobat Reader is available here

For more details on the international trade of Essential Oils visit following link

More on essential oils' technology of production.


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

More on  Favorites' Folder backup


Freebie Of The Month

MAKE USE OF A USER-FRIENDLY BUDGET MANAGEMENT APPLICATION

Here is IngenMoney the money management application that makes life easier for the entire family.

It is a user-friendly application, which makes money management a fun. IngenMoney is built for the average family . It helps the family manages its assets and finance daily. With IngenMoney, family's members track all expenses and incomes; manage bank accounts without using obscure spreadsheets and complicated calculations.

The well designed interface guide you straight forward to input bills, obligations, loan payments, credit cards expenses, bank accounts savings and debits.

Two separate users (Husband and Wife for instance) can setup their profile and use it separately.

Click here to get IngenMoney


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