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Dream Big Start Small

No matter what you want to achieve in life, you need to dream big and start small. Everyone has something they want to achieve in life, be it financial freedom, starting that great business, having a great relationship with someone they love, or to travel the world, we all have something we want out of life.

We get funding requests from newbie business owners, for outrageous sums that their business cannot justify or have the capacity to manage. We highlight a few below to battress our admonition and honest self-business appraisal before putting a figure on the financing you need. The specific names of the businesses and their owners have obviously been eliminated in line with our privacy and confidentiality policies, but elaborated below for prospective borrowers to learn from when borrowing from us (or any other lender):

Scenario 1: Data Analytic Company

We got a request for $500,000 for a supposedly data analytic company incorporated in 2018. This business has never had any paying clients or customers for the past three(3) years - No historical sales data, and had no employees as it was run by the 28th year old founder himself and one part-time worker.

This business has not track record to lend to without a collateral, so we requested for a collateral which they were unable to provide except to say they had a man in the society to guarantee for the loan - where in the world is moral capital a guarantee for a loan of such an amount for a company with no proof of capacity or competence?

This supposed business never applied formally and the last time we checked, they are no more a going concern. 

Observation / Lesson: Before you apply for funding for your business, make sure you meet the requirements and position your business in a positive light to justify the amount you're requesting.



Scenario 2: Education-based Business

This was a sole proprietor business requesting for $200,000 (GHS1.2m), even as it's been clearly stated severally on this platform that the maximum lending amount for sole proprietor business is GHS5,000. This business owner was asked to convert his business to a Limited Liability Company (LLC) before his application could be considered.

This business has never renewed it's Sole Proprietor business registration at the RGD, has never used the business accounts he claimed he opened for this business, so this business was unable to provide us any business bank statement, let alone any filed business accounts or proof of tax payments as all businesses done by this business owner was treated as personal, over the table payments or to his personal mobile money account.

Additionally, this business had no employees and no permanent office location (not a problem with us, so long as your business has a professional website, which it did not have but was made to setup one as a mandatory condition to apply for funding with us).

This business neither was abreast with the details of the business plan he paid someone to help him do.

We were not surprised when this business owner complained that for over 5yrs he's not had any lender or investor trust in his big dreams and plans - and we ask ourselves, whic serious fund provider worth their salt would throw money at a such poorly run 'business' such as this?

As it's our mission to de-risk almost all applications to provide some funding to registered businesses, we committed to lend to this business by instalment disbursement tied to milestones. The interesting part - our initial commitment to drawdown an initial GHS300,000 for import of some education products was subsequently slashed to GHS100,000 when it was obvious this business owner lacked the experience to carry out such a high value transaction from China to Ghana, when the this business has never handled and/or transacted business cash in excess of GHS20,000 before - no verifiable business records was available or provided and was orally admitted by the borrower himself.

There is still the committment to lend when certain measures we have laid out have been instituted.

Observation / Lessons: How did this borrower arrive at the GHS1.2m with no available business records and no collateral?



Scenario 3: Supplement Import Business

It's obvious most people looking for funding from us do not commit the time to read our requirements. This initially Sole Proprietor registered was made to convert his business to an LLC, as he sought to borrow GHS430,000, far in excess of the GHS5,000 cap for sole proprietor businesses.


Scenario 4: Poultry Business

Funding request with a credible business plan was in excess of GHS730,000. Majority shareholder is a permanent employee in the public sector with net monthly income above GHS6,000 from his day job but looking to switch careers to become a commercial poultry farmer with initial foray into poultry and iminent addition of the cassava value chain.

This borrower has already proved his fully-paid for farmland as collateral in addition to the asset-based lending for the remaining quota. His request amount has been granted but with an initial funds drawdown amount of GHS100,000 to get the poultry house setup and procure the initial day-old chicks. Release of funds has been held on until the Avian flu abates. Subsequent release of the remaining funds has been tied to certain milestones.

Observation / Lesson: This registered business already had an LLC-registered business, setup a business bank account and website for his agribusiness even before getting into contact with us - He only moved his website hosting to our servers as a requirement for funding with us.

This applicant being adequately educated (MBA graduate) has still enlisted the services of qualified external experts to be part of his team.


Scenario 5: School Operator I

A limited liability company registered school licensed by the GES, with evidence provided and currently operating with about 100 students in their own premises (not rented). This applicant keeps their books and provided business (school) bank statement to support their application for a construction loan in excess of GHS5m (to be disbursed in stages tied to construction phases), for the construction of a bigger school facility (loan to be secured against this yet-to-be built school campus on their own land they provided documentation for as part of the collateral.)

Observation / Lesson: There's no reason why not to lend to this business as they have provided an upfront collateral in the land owned in the school's own name, a going concern with evidence of operations provided and independently verified by our team.


Scenario 6: School Operator II
A sole proprietor registered school requested for GHS200,000+ to develop their new campus and move away from their rented premises. No evidence of business registration has been provided by this school operator, no business bank account and/or statement provided for even the sole proprietor business.

Observation / Lessons: This business has been asked to convert their business to a limited liability company for the amount of loan being requested, in addition to all the other supporting documentation we need.