Materials Handling Industrial Storage Systems Manufacturer Seeks Loan

We are a producer of racking and shelving storage systems for the manufacturing and retail businesses. Funding is needed to take the company to the next level.

We established a partnership with a Chinese manufacturer and want to distribute their products across the country, which will increase our turnover by 80%. 20% of the wholesalers expressed their willingness to cooperate.

We are a new materials handling company started in September 2011 with all the staff having the same goals, the sales team started together as a new force with dedicated service levels and client satisfaction, the installation team pride themselves in a good job done. We started because of the poor service levels and the bulling of the bigger manufacturing companies. A group of sales reps and technical guys got together with their experience in the market and started our company.

Our Director has 9 years’ experience in Sales and Marketing, and for the last 18 months before September 2011 he has been the reason his former company had a growth of 80% in Sales, Turnover and Profit. Due to the Marketing strategy and new systems implemented the company is on a new high and has quickly recovered from 2009 debts and losses.

Previously, for the period 2008-2009, he had a turnover of more than 10 mil and before that he had averages of 5 to 6 mil turnover per year.

We have now started negotiations with other wholesalers in South Africa and Africa to supply them on wholesale basis with products from a manufacturing company in China we have established a partnership with.

The products are of highest standard and have the respective international certificates to prove that. The prices are so good that the local manufactures will struggle to compete.

We are a fully operational company in need of additional funding to take the business to the next level. To achieve this it is looking for about $1mil.

The amount will be paid back over a period of 120 mounts. All details are to be set up by the lender.

Alternatively, the investor can buy the material and we will pay back the debt every time stock is sold.

There are 5 major manufacturing companies in South Africa and with the increases of electricity and fuel prices they have no choice but to increase the price of the material to such levels that it is even harder for the retailer to get racking from the shop or warehouse.

Our biggest advantage over the competition is that we have found the right manufacturer who has a high quality produce at an attractive price and we have developed a stable partnership with him. Over the past year all inquiries from other South African companies to the China supplier were forwarded to us meaning that we are the preferred supplier for Africa and that no one can go behind our back to our manufacturer.

There is a big demand for quality and cheaper racking and shelving systems in South Africa. The current manufactures are suffering from high costs and ripping off end users but still failing to support their own wholesales. Everyone is looking for a way out and we found ours. I have 10years experiences in this field and know where the shortfall is. This is what makes our project such a good opportunity.

The finance is for the following:
• Opening offices/warehouse in Gauteng and providing $500k worth of stock
• Opening an office /warehouse in Cape Town and providing $400k worth of stock
• Covering operational expenses – $100k
• Covering transportation costs (plane)

$1 000 000 / 120 = approx. $9000 pay back per month over period of 120 months

We are looking for debt investment.

The overall amount is $ 1 000 000.00 at about 5-7% interest rate over a period of 120 months.

We will pay back $9000.00 per month.

Please feel free to suggest other options.