We will be buying sugar and selling it to suppliers here in West Africa. The funding is needed to obtain a bank guarantee which will be used as payment instrument to the main seller of sugar. In all, a funding of 300,000 USD is needed by 25-07-2013.
Revenue will be generated through sales of sugar. I have an agent in this business for the past 5 years and there is no loss risk in it. We buy and sell to a huge supplier in the sub-region without clearing it at the port or paying duties or port charge - the buyers takes care of them all, we sell only the bill of lading to them.
The project is about 25,000 metric tons of sugar ship load for 12 months. After two months the company's profit margin will be very clear and one can tell what the company will make by the end of the year contract.
The bank guarantee renting is the only need of the company. 60% of the total profit will be the investor's ROI, 10% for the company and 30% for me.
Banks and some few individuals are our competitors but I have been in this business for the past 5 years as an agent and have great access to most buyers in the West Africa sub-region that deal with sugar.
As an agent we are closing with the buyers thereby connecting them with the sellers for a commission fee. For us to be on top we will bring down our selling price a little to draw their attention to us.
The market for sugar in West Africa is growing at a very fast rate, and in the next 10 years it will grow at higher rates than any other commodity market because sugar is used in our everyday life here in West Africa.
The most wealthy people in West Africa I know are mostly into the sugar business and they are making huge money because it gives 100% interest of cost price. I have been in the sugar business for the past five years of my life.
The funding is needed to rent a bank guarantee from one of the world’s noble banks since the seller of sugar from Brazil demands it. After year one of this business the company could stand to raise the guarantee for the second and following years.
The investor will take 60% of the company shares but his views are also welcome on it.