- Country: India
- Industry: Logistics, Distribution
- Stage: Seed
- Investment size: $19,000 / min. $15,000
A lease all company who would be experts in the leasing business in India having tie-ups with all the sectors to make everything available to the common man at minimal costs.
The idea is to provide leasing services from everything ranging from vehicles; bikes, cars, mobile phones, laptops to home appliances or everything one can think of. This will work particularly in an area inhabited by immigrants and students who have limited income and unlimited needs.
Our business would be to get their unlimited needs fulfilled using their limited money and cash in. The idea is to earn from the lease service charge, which would be in addition to the monthly or quarterly rent they would be paying which would anyways go to the company we have the tie-up with. Looking at numbers if we are leasing 10 cars with an additional lease charge of say $100 per month we are looking at a revenue of $12000 a year from just 10 cars. From appliances to real estate and property the same goes on increasing depending on the pricing of the service we are providing.
This is straightforward payback scheme as the profit is on the additional charge. After the initial tying up with the companies; the next stage is to secure the commodities and services we would be providing which would be done by insurance. And then the next stage would be to enter into contracts with customers to keep the product we are leasing in a good condition and when they return; the same has to comeback in a state which is ready to be re-leased or sold if needed. The sale part would also be an option in the end of the lease if the customer's want to.
To ensure that the customer does not abuse the service and run away with the product for such a low price; we would do a complete fool proof background verification check of the customer before handing over the product. For the investors they get 50% of the profit sharing and shares as per the clauses, which may be decided.
Interested investors can establish contact with us on Merar Investment Network.
There is no other player in the Indian market with this line of business so the advantage is a direct monopoly in the market.
Rationale for the deal
I as an entrepreneur am looking to exploit the needs of the common man. I am a part of them and I know what would sell to them and in what prices. The idea is to provide what they need at prices they can afford and a little service charge every month is no big deal for the needy.
Use of financing
The investment would be needed for entering into contracts with the product providers and paying them their initial rent costs if needed. Once the initial rent paid is recovered the same would reap huge profits.
The idea is to get back to second hand car and vehicle providers and for mobile phones and electronic appliances to get to all the wholesale retailers explaining them the project. The idea is new and hence there would be a lot of streamlining which would be done once the initial roadblocks is surpassed.
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