We are inviting people to make a Business loan to us! We offer 1.5% Interest per month and shares in the Business as Collateral
Invest with us vs Buy your own Business Options - Only Change the red fields below
Invest with us at 1.5% p.m or 18% p.a. Buy a Business
Invest R 2,000,000 R 1,290,000 (Actual Purchase price offered to the Seller when buying the Business)
Franchise join Fee Included-Paid by us R 100,000 (if a Franchise the correct amount may be entered-If not a Franchise delete this amount)
Stock Included-Paid by us R 50,000 (Stock amount payable for stock in hand on Takeover date)
Rent Deposit Included-Paid by us R 150,000 (Rent Deposit payable to Landlord-Normally 2 or 3 times the Monthly rent payable)
1st Month rent Included-Paid by us R 50,000 (First month rent payable)
Exta Cash Flow needed Included-Paid by us R 100,000 (Normally 5% of the Purchase price is regarded as wise)
Emergency Funds Included-Paid by us R 50,000 (Normally 2.5% of the Purchase price is regarded as wise)
Cash to buy stock in Month ONE Included-Paid by us R 200,000 (Normally 40% of the Avg. turnover is regarded as wise)
Other: Included-Paid by us R 10,000 (Other items you may want to Budget for when Buying a specific Business e.g. repairs or revamp needed)
Total Cash available to INVEST R 2,000,000 R 2,000,000 (Total CASH amount client has available to Invest or Buy his/her own Business)
Monthly Income R 30,000 R 38,700 (Based on a reasonable R30,000 Income per million Rand Invested in buying of a Business)
Managers Salaries Included-Paid by us R 10,000 (Manager's Salary or total of Manager's salaries needed to Manage the Business Purchased)
Salary owner/current R 30,000 (Investors Current Salary at place of employment which will be forfeited when resigning)
Net Income per month R 30,000 R 8,700
Your Monthly fixed Income when investing with us will be R 30,000
Your Monthly Income when Buying your own Businesss should be R 8,700
Verdict of the Comparison: You may do better Investing with us-With R 21,300 per month!
Notes: 1) Often hopeful Business buyers are not aware of all the hidden expenses and
extra funds needed when purchasing Businesses. They do not budget for these expenses
and often fall into trouble along the way.
2) Normally optimistic Buyers do not realise how much time and
energy will be needed to manage and run the Business-not to mention all the hidden monthly expenses.
3) When Buying a franchise Turn-Over sales figures can easily be verified but if it is NOT a Franchise
the correct sales figures can hardly ever be calculated 100% (leaving the Buyer on risk)
Sellers normally inflate their Turn-Over or Sales Figures
4) Business Sellers always hide some expenses when selling. This increase their NET profits
increasing the price they can expect to receive for the Business.
5) Buyers should take less note of Financial statements (if it is a CC it will normally NOT BE AUDITED)
6) Our Focus is more on correct Management accounts and VAT returns
(good management accounts should be very comprehensive and should include minor expenses-
the more details the better)