Business Plan
Objective - The Company's main objective is to create both the business and legal framework within which specific consumer related vehicle finance problems can be addressed. Consequently the following services will be provided to consumers.
(1) Where the consumer is under financial pressure and wishes to avoid repossession and possible blacklisting the Company subject to certain conditions will take over the asset and and place the vehicle in the Company's rental pool.
(2) Where the consumer is unable to obtain vehicle finance through conventional means the Company subject to certain conditions and qualifying criteria will provide the consumer with a vehicle on a rental basis with an option to
(2) Where the consumer is unable to obtain vehicle finance through conventional means the Company subject to certain conditions and qualifying criteria will provide the consumer with a vehicle on a rental basis with an option to
Market Demand - Research has shown a huge demand for the services described above.
On the one hand consumers at various stages of the vehicle finance lifecycle are subjected to financial pressure resulting from a multitude of factors such as rising interest rates, divorce, job loss etc. This results in the consumer being unable to maintain vehicle finance instalments and consequently the consumer requires a way out of the contractual arrangements with the finance house. In general the finance house is unsympathetic and will repossess the vehicle and sell on auction. This ultimately leads to the consumer owing the finance house, litigation and blacklisting.
On the other hand we have consumers who do not qualify for finance due to existing blacklistings or stringent vehicle finance acceptance criteria. Research has shown that consumers in this category can be just as diligent in terms of vehicle finance repayments provided an appropriate risk model is applied.
On the other hand we have consumers who do not qualify for finance due to existing blacklistings or stringent vehicle finance acceptance criteria. Research has shown that consumers in this category can be just as diligent in terms of vehicle finance repayments provided an appropriate risk model is applied.
Market Position - The strength in this business venture lies in the fact that this will be the only legal business of it's kind operating in this market allowing the business maximum market penetration and a rapid growth opportunity.
Risk Management - The Company will provide a comprehensive risk management service. These services will include consumer risk assessment, rental collections, credit control, vehicle insurance and tracking, vehicle recovery and asset management.
Profitability - Based on the Company's financial projections the business venture reflects a highly profitable return.
Investments - The objective with attracting investments is to create an investment fund professionally managed by external fund managers that will be utilized specifically for security purposes in the financing of motor vehicles for rental purposes and achieving the desired investor ROI. funds are placed in a specialized medium risk investment vehicle that provides moderate capital appreciation with a sustainable level of monthly income over the investment period. A certain percentage of the funds will be set aside as a buffer against potential losses.
Investors - Investors can expect to receive a projected return on investment exceeding 25% per annum. The minimum investment is set at R50000 with a minimum investment period of 5 years.
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