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THE PROMOTER
The promoter is a wholly owned Ghanaian limited liability company registered and established in 2005. The company has made immense strides and would like to expand its business for taking advantage of economies of scale. The company is diligently serving its cherished partners and customers through prompt and quality delivery of services and is duly licensed by Ghana Cocoa Board to buy and sell cocoa grown in Ghana. It is a company which has all the structures, logistics and personnel but the acquiring of circulating capital has been a challenge as a result of unreliable sources of loans procured locally.
STATEMENT OF PROBLEM
The promoters have since 2005 worked toward ensuring that it is well equipped to undertake the buying and selling of cocoa effectively. It now has adequate warehouses, agents, haulage logistics, human capital and monitoring logistics. The major problem over the years has been working with inadequate working capital. As a result, there has been underutilization of the company’s resources. As per the technical assessment of the current logistical endowment of the promoters, the company needs about US$25M as working capital in order to fully employ its available operational logistics. However, a minimum of US$10M could be managed. This is required for the cocoa buying season of 2016/17. The company anticipates this will enable them to compete favorably in the produce buying for each year.
INVESTMENT APPRAISAL
The investment has a payback of about five years, and an IRR over 5 years of 152.28% and NPV of US$43,019,752.00.
LOAN TENOR AND EQUITY
The management would appreciate a loan tenor of 5 years in order to enable them turn the loan amount severally and also to overcome repayment burden.
WINDOW OF OPPORTUNITY
Due to working capital constraints encountered by almost all the Licensed Buying Companies, several farmers do not get their products purchased on timely basis. With availability of enough working capital the promoters will leverage on this in order to buy more and reduce farmers’ anxiety. Besides, they have established a competitive edge through its resolute focus on timely deliveries to COCOBOD. By making farmers more assured of on -time delivery than with competitors, farmers will be more likely be able to use their services as they can never be sure when a few hours can make an incredible difference to their potential revenues or expenses. The promoters are known in the cocoa marketing industry for its efficiency and this will be leveraged on to get more cocoa from the farmers. Moreover, they have already have in place warehouses, haulage trucks, agents and other logistics all over Ghana. Therefore the working capital will be put into use immediately upon receipt.
The promoter is a wholly owned Ghanaian limited liability company registered and established in 2005. The company has made immense strides and would like to expand its business for taking advantage of economies of scale. The company is diligently serving its cherished partners and customers through prompt and quality delivery of services and is duly licensed by Ghana Cocoa Board to buy and sell cocoa grown in Ghana. It is a company which has all the structures, logistics and personnel but the acquiring of circulating capital has been a challenge as a result of unreliable sources of loans procured locally.
STATEMENT OF PROBLEM
The promoters have since 2005 worked toward ensuring that it is well equipped to undertake the buying and selling of cocoa effectively. It now has adequate warehouses, agents, haulage logistics, human capital and monitoring logistics. The major problem over the years has been working with inadequate working capital. As a result, there has been underutilization of the company’s resources. As per the technical assessment of the current logistical endowment of the promoters, the company needs about US$25M as working capital in order to fully employ its available operational logistics. However, a minimum of US$10M could be managed. This is required for the cocoa buying season of 2016/17. The company anticipates this will enable them to compete favorably in the produce buying for each year.
INVESTMENT APPRAISAL
The investment has a payback of about five years, and an IRR over 5 years of 152.28% and NPV of US$43,019,752.00.
LOAN TENOR AND EQUITY
The management would appreciate a loan tenor of 5 years in order to enable them turn the loan amount severally and also to overcome repayment burden.
WINDOW OF OPPORTUNITY
Due to working capital constraints encountered by almost all the Licensed Buying Companies, several farmers do not get their products purchased on timely basis. With availability of enough working capital the promoters will leverage on this in order to buy more and reduce farmers’ anxiety. Besides, they have established a competitive edge through its resolute focus on timely deliveries to COCOBOD. By making farmers more assured of on -time delivery than with competitors, farmers will be more likely be able to use their services as they can never be sure when a few hours can make an incredible difference to their potential revenues or expenses. The promoters are known in the cocoa marketing industry for its efficiency and this will be leveraged on to get more cocoa from the farmers. Moreover, they have already have in place warehouses, haulage trucks, agents and other logistics all over Ghana. Therefore the working capital will be put into use immediately upon receipt.