Wednesday, 31 May 2017

What can you do with a gemstone portfolio?

There are people who sit on hard assets like gemstone portfolios whose belief is that the value of assets is based on the price they will receive if and when the gemstones are sold. There is a market whereby dealers buy, sell and trade gemstones and other precious assets depending on the supply and demand of trade.

However, there are other ways to generate value within the portfolio without having to sell the gemstones within it. Nowadays there are finance facilities which will offer you a yearly interest rate for ceding your prized asset into their fund. Finance can be structured to secure precious stones in return giving the asset holder a return on investment. The way the structure works is that owners of latent/non performing assets can assign their gemstones/precious metals etc., into these specialized funds. Asset holders still retain ownership and sit back and let the assets yield an annual return. This is a great way to unlock value within the asset.

There are many humanitarian and renewable energy projects worldwide who need funding to help communities thrive and prosper. Gemstones can help securitise a structured funding model for projects come to life. They become collateral. Collateral backs a project and with the finance model in place, banks can structure a loan to fund the projects. Thereby not only are the asset owners unlocking latent value within the asset, they could also be contributing to good causes by assigning their assets into the fund which in turn enables the program to fund projects.

There are other hard assets that could be accepted include; 
  • Government Bonds
  • Precious Metals
  • Rare Earth Metals
  • Base Metals
  • Real Estate / both commercial and residential properties

Sunday, 21 May 2017

Look Out For Potential Scammers

  Here are some important things you need to research before taking on a funder or intermediary service. There are so many individuals out there who state they can do large project funding but are not able to put you in front of a lender or at worse, they disappear. These instances are quite common so we have written this essential guide for you.

Important questions to Ask Yourself

These are some leading questions you might want to find out to help you decide if the intermediary/funder can get your business funded. Not all are scams but if they can't provide you evidence or they don't appear transparent, there might be problems further down the line.

  • Do they have a history of funding project
  • Can they demonstrate project mandates/success
  • Can they give referrals/testimonials
  • How much information do they share about their company on the web? (References from other websites)
  • Do they have a legitimate source(s) of funding 
If you are performing due diligence on a broker they should be able to tell you who they go through when the loan and security agreement is issued. Banks and other alternative financing companies have access to capital lines such as hedge funds, family offices, or direct lines of capital.

Writing a project funding propsal

One thing that might stand out is do these companies understand your business and know what they are saying or are they trying to bluff you? 

**Ask specific questions, they should be able to answer without misguiding you.

Do they stay in contact and answer your questions or do they seem to "dodge the bullet?".

Just be careful with some questions your ask! Some funders won't discuss how they operate, this is because their business might be running on trademark rights so by asking the funder about themselves you might not be doing yourself any favours.

Tell tale signs of a potential scam artist

On many social platform websites like LinkedIn and Google Plus there are many registered users who advertise their services for business funding. There are a couple of things you can do to safeguard your business project proposal from falling into the wrong hands or worst, being sold to by a scam artist. The questions to ask yourself is:

  • Do they appear legitimate? Have a business set up?
  • Are they registered in their home country?
  • Do they have a corporate identity?
  • Do they have a company email address?
  • How transparent and open are they? 
  • Intermediaries do not handle client money.
  • Do they seem to only be interested in money?
  • How much information can someone give you about project finance?
  • How often are you communicating?
STAY AWAY from those who write from generic email account such as Gmail or Yahoo as they are most likely to be fraudulent.  

Want to know the secrets of getting funded?

Monday, 15 August 2016

Fees and Costs - Project Finance

Now that you have your business ready for funding, you probably want to know about paying fees and costs for a big project? Many businesses refuse to pay upfront fees and exhaustive list of charges but the biggest question is;

What exactly might you expect to pay?

Thursday, 19 May 2016

Understanding Guarantee Letters

It is quite hard to get a bank loan so entrepreneurs are open to other forms of project funding. When entrepreneurs turn to an international project funder, a number of guarantee letters might be involved to enable the funding to go ahead. You can be prepared with a bank guarantee or you might be asked by the funder to get a bank guarantee issued. To reduce confusion let's use the below analogy as an example:

The Debtor - Seller - You
The Beneficiary - Buyer - In this example, us
The Guarantor - The Bank

Collateral - When you use physical goods or property such as a house that you own to obtain a loan, it is known as "collateral". You must pledge one or more of your assets as security for a loan. This can also be secured against company assets. Should you fail to repay the loan, the lender is legally entitled to your physical goods.

Friday, 15 January 2016

Here's what you need to know about; Renewable Energy Funding

Now is the time to get your renewable energy project financed. With countries reaching agreements at the COP21, there is a need for companies to go "green" and implement a business strategy that will eventually enhance the sectors below.

Thursday, 14 January 2016

Top Tips: Get Your Business Funded

Large Project Loans

It can be difficult for startup businesses to get a loan from a bank because there's no history of financials. Instead if the bank chooses to do so, they might give you a loan based on your credit score. 
Project financing proposal meeting
There are alternative options to get large project finance and that is through the likes of private investors, venture capitalists and other non banking financiers. There is a huge risk to large project loans from a lender's point of view. Not because of the size of the project but because lenders might need to mitigate their risk.