COMMON QUESTIONS ANSWERED
Our consultants have hands-on experience starting, funding, and growing their own businesses, so we understand exactly what you need.
1. What is an Alternative Funding Method?
AFM is an alternative option to the traditional approach of banking solutions like getting loans from banks & finance from private lending institutions.
2. Why it has become more popular in India now a days?
After Banks have stopped giving out loans & all the business entities are already utilized their existing options plus as there is no other possibilities to get the funds from any other sources, AFM is getting popular day by day in all the countries.
3. Why it is only the option for us?
When CIBIL score is low & When the Business/Company status is under NPA, No Bank/Private Lender/Financier will not give any financial support to them. Hence, client will have to choose AFM to meet their lending needs in inevitable situations.
4. Will it work for all the types of Businesses?
Yes, any client can choose AFM for their funding needs, there is no restriction.
5. . Startup/NPA Companies also can apply?
Yes, any business/company can apply for this; even though they are Startup/NPA.
6. What Securities/Collaterals will be taken in AFM?
International Bank Guarantees will be used as collaterals to procure the funding for AFM from the third party companies.
7. How to acquire these International Bank Guarantees?
To procure IBG, Client should have to spend 10% of face value of the loan. For Example: If a client requirement is Rs. 10 Crore ($1.5 Million approx), then they need to spend Rs. 1.00 Crore ($150,000).
8. Oh My God, Rs. 1 Cr ($150,000) to be spent! We don’t have that much of funds, what to do?
If client is having no funds, then he is not eligible for this
program, but when a client who is having little money like Rs.
70.00 Lakhs ($100,000) also can raise the funds.
For Example: With Rs. 75.00 Lakhs ($100,000), we can procure Rs. 2.50 Crore ($350,000) IBG first and we can repeat it until the client requirement is fulfilled.
9. You have explained to acquire the IBG till now, but how to raise the funds on IBG?
Our main intention of getting IBG is to raise the funds on it,
but how to raise the funds on it is not a big deal and
following steps will make you understand to get the funds
from this IBG.
Please note that IBG will not be used to get the loans in India or we will not take it on our names, getting a loan on it/ discounting here in India is a misnomer, we are not doing such activities which are completely against our Indian Banking Rules & Regulations and also not possible but please see below that how we are generating funds from this concept
a. We will just act as an intermediary for this IBG concept with the intention of generating our required funds for our business, therefore we arrange this IBG for an importer which will be forwarded to his exporter.
b. Once the exporter received this IBG, He sends the goods to Importer and then Importer sells off all the goods to their pre approved buyers and pays the exporter and to us.
c. Before we are going forward with this IBG concept, we will have a pre-arrangement with the Importer that he shall fund us the 100% of our spending value from his advances & profits, i.e., if we spend Rs. 75.00 Lakhs ($100,000) on the BG, he has to give us the loan of Rs. 75.00 Lakhs ($100,000) plus our principal investment of Rs. 75.00 Lakhs ($100,000).
d. To protect our funding concept & our investment, we always have a tri-party agreement with the Importer, Buyer & Commodity Buyers plus all shipping related documents will be in our custody until we get our loan amounts, hence, there is no chance of risk in the deal.
e. Moreover, once we received the required amount from you, we will directly deal with the banks in-order to get the IBGs means no second/third parties will involve into the transaction.
10. Why should we arrange IBG’s for the Importers, don’t they have money for their own trades?
Intelligent Question. Even though they are having funds, they cannot get the IBGs because they will not have limits to raise the BG, hence we will create that requirement to utilize this opportunity to get our loan funds, thus we select the importers who can accept our offer prior to the providing of IBG.
11. What are the chances of failure?
a. No chance of failure in the concept, because everything
will be arranged prior to our contract, as banks are also
involved; they guide us in all the steps.
b. as we do have 1000+ Importers, Exporters & Buyers in our list with whom we regularly dealt with, we go with the right people to get the desired outcome.
12. What in case if the deal is failed?
As we already told you, we will have every arrangement before entering into the contract and we take all pre- cautions before spending on the BG, even though if concepts fails means we will have a chance of getting refund our entire costs from the bank who issues IBG and it is our complete responsibility to pay you back immediately.
13. How much funds we will get on a Rs. 2.50 Cr ($350,000) IBG?
Client will get Rs. 75.00 Lakhs ($100,000) funding on a Rs. 2.50 Cr ($350,000) IBG.
14. We are expecting Rs. 100 Cr ($15 Million approx) of loan, but getting Rs. 75.00 Lakhs ($100,000) will not suffice our purpose, what to do in this case?
If you require Rs. 100 Cr ($15 Million approx) loan means, you need to spend Rs. 10 Cr ($1.5 Million approx), but instead of spending 10 Cr ($1.5 Million), we suggest the clients to spend initially smaller amounts and with the same amount we will repeat the program until you get the required funds.
15. Did not understand, Please explain more?
By spending of Rs. 75.00 Lakhs ($100,000), we will get Rs. 1.50 Crore ($200,000).
From that Rs. 1.50 Crore ($200,000), we will get Rs. 3.00 Crore ($400,000) and we will repeat it until the client gets 100.00 Crore ($15 Million approx). And also client needs to wait till the completion of program.
For Example: after rising of Rs. 1.50 Crore ($200,000), you can utilize Rs. 75.00 Lakhs ($100,000) and remaining Rs. 75.00 Lakhs ($100,000) will be used for the generation of another Rs. 1.50 Cr ($200,000)and interests will be calculated only on the utilized funds.
16. We cannot wait for “n” no. of repetitions to get our desired loan, what to do if we need funds within no time?
To get the desired loan within no time, you have to increase the initial spending means if you spend Rs. 10 Cr ($1.5 Million approx), funding will starts from Rs. 20 Cr ($3 Million approx) and in 4 cycles total Rs. 100 Cr ($15 Million approx) will be completed/ if you spend Rs.75.00 Lakhs ($100,000), funding will starts from Rs. 1.50 Cr ($200,000) and Rs. 100 Cr ($15 Million approx) can be completed in 9 cycles.
17. What is the Interest Rate?
Rate of Interest will be 4% per annum on the utilized funds.
18. 4% means 25 Paise, Is it true, If it’s true, how it is possible?
Yes, it’s really 4% only, because, we deal with the importers who can give us the loan at only 4%.
19. As you said its international program, will we get the funds in Dollars/ In Indian Rupees and in which currency we have to repay?
Even though the program is happening in abroad, Client will get funds in INR only and will have to repay in INR only for Indian Clients and others will get in their local currency.
20. How you evaluate our company/business to fund us?
By looking into Detailed Project Report, Bank Statements, Existing Loan Statements and Asset Valuation Reports, we will evaluate and will structure the loan.
21. What is the collateral requirement to give loan to us?
If there is a free-hold property, we will take to our company as a collateral/Pledged Properties will be released from the Banks and will be registered on our company and in some cases, we will take the shares from the company along with collaterals.
22. How Many days it will take to complete a loan of 10 Crore?
60 – 90 working days upon receipt of initial margin and required documents; First tranche will starts from 45th working day.
23. What’s the Minimum Value of loan amount?
We can start funding even from Rs. 1.50 Crore ($200,000) but the margin we required initially is minimum Rs. 75.00 Lakhs ($100,000) because the minimum IBG we can apply for is 2.50 Cr ($350,000) and for that we require Rs. 75.00 Lakhs ($100,000) to initiate the process.
24. What are the involved risks in the program?
There is no concept of RISK in the program because we deal everything with the banker and we don’t pay anybody until we get the IBG, therefore your paid money is safe.
25. What is the security for our Rs. 75.00 Lakhs ($100,000) and what will happen to our Rs. 75.00 Lakhs ($100,000) if the funding cannot be done?
We don’t want to put our reputation on stake for a matter of Rs. 75.00 Lakhs ($100,000) and we provide Contract, Indemnity Bond & Refund Cheque & the same can be encashed in case of no performance from our end.
26. What are the requirements to enter into this program?
CIS, KYC, DPR, Bank Statements, Existing Loan Statements & Fund Proof of Rs. 75.00 Lakhs ($100,000) to be submitted.
27. What are the requirements of post sanction?
Shares Transfer/Collateral Transfers or both should be made.
28. We have large scale of collateral securities and we do not have even Rs. 75.00 Lakhs ($100,000) to enter into the program, what to do in this case?
YOU CANNOT ENTER INTO THIS PROGRAM WITHOUT HAVING FUNDS.
29. Can we meet you directly to initiate the process?
Obviously, you should. We don’t make any contracts without meeting the clients but only after receipt of your CIS, KYC and Fund Proof of Rs. 75.00 Lakhs ($100,000).
30. How can we trust you to pay you Rs. 75.00 Lakhs ($100,000)?
When the words “RISK”, “TRUST”, “CONFIDENCE”, “FRAUD” etc., are in your mind, its better not to enter into this concept.
31. Do you provide any references before we pay you?
Being a biggest alternative investment & loan provider and also by having presence in 7 counties, we shall not provide any references of our loan clients because of non disclosure agreements.
32. Are you the Investor/Consultant/Lender/Funder?
We are the direct facilitators who works directly with the Bankers to arrange BG’s & Funds and we do have couple of high net worth individual investors, importers, exporters in our hands to fulfill the client requirements on in time.
33. What are your charges?
We are not Consultants, hence, we do not charge even single paisa from you as any type of fee but you need to pay to your consultants if anybody are there in between us.
34. Then what is your profit in the deal if you don’t charge?
Importer will pay us the arrangement fee of IBG.
35. Do you have any other programs to raise the funds quickly and without repayment?
Yes, we do have private placement programs in which we can generate the expected profits and you need not to repay the amounts because these funds will be generated from trading programs.
36. What is the minimum investment for Trade Programs and what will be the returns?
Minimum Rs. 7.00 Crore to be invested and Rs. 30 Lakhs will be paid as profit per month and it continues as long as the market conditions are good.
37. What exactly are Private Placement Programs?
These are Trade Platforms, more about this program can be explained in a face-to-face meeting.
38. What more services do you provide?
a. Financial instruments like SBLC, BG, CG for Import & Export
Trades & Discounting of International SBLCs.
b. Supply of Rice, Sugar, Crude Oil.
c. Facilitation of Big Trades.
e. Offshore Company Incorporations & Bank Accounts.
f. Project finance up to Rs. 700.00 Crore.
39. Will you be able to allow us to meet your lenders directly?
Yes, Direct Meetings with our officials can be fixed after receiving your CIS, KYS & Proof of funds at any of our following locations.
India, Dubai, Thailand, Singapore, Malaysia, Mauritiues Hongkong, UK & USA.
40. To whom we have to contact for more information & appointments?
You can contact one of our representatives at +91 94937 51199.