Friday, March 30, 2007

Screaming for Capital

Yesterday was the last day for filing candidacies for the local elections. I should have known months back that the elections would present me with oppurtunities for my Agri-Financing Business, but I did'nt. More elections will come, and I should be prepared next time. Lessons learned.

The other day, I was offered large tracts of rice land for pawning (20 years), but I was not capital ready. I accepted one, which I promised I will deliver the funds within April. More was offered, but my capital can only accomodate one. Hahaha.

So? I must pay all my outstanding loans within the next two weeks, so I can apply for a re-loan. This money (which will serve as capital), I will loan to the guy that offered me 8 hectares of rice land. I will tie his land for 20 years, which means that he cannot redeem his land for the next 20 years. The land will produce rice 2 to 3x a year - which would serve as profit for the loaned amount. The capital outlay would be recovered in two years - 18 years profit. I could not ask more than that, hehehe.

This re-loaned amount (charging me 12% p.a.) I will target to pay by September, so I can apply for a reloan again - which I will provide to those running in the Barangay elections come October (definitely more clients would be available by then). I am targeting to acquire 15 to 20 hectares of riceland this year.

I have been telling myself - make do with what you have, do not overextend your finances, choose clients carefully.

Going to this business is a bit corrupting to the soul. I will endure, besides if I don't take them, a more hungry shark would. Remember I charge them less than what the current market is offering.