Bowentech Global Services Limited (‘’Bowentech’ ’or ‘’the company’’) is an agro-commodity based company that specializes in sourcing, procurement, grading and exporting of agricultural produce, mainly cocoa beans, cashew nuts, sesame seeds and cotton. The company was founded with a desire to serve both the local and international market with quality agro-allied products. Bowentech was registered and incorporated in August 2009 under the Companies and Allied Matters Act 1990 (CAMA) of the Federal Republic of Nigeria, with the registration number – RC 809535. The company is also registered with the Nigeria Export Promotion Council as an export company.
Bowentech engages in the marketing of high-quality Cocoa Beans purchased from the various local farmer agents otherwise known as Local Buying Agents (LBA). The Cocoa Beans are sourced from Ondo states. The Cocoa Beans usually are bought dried from the LBAs, bagged in jute bags in 80kg size at 5% mold, less than 5% slate and less than 1.5% foreign matter as required by the importers. The seeds are transported to Lagos and sold off to awaiting exporters.
Bowentech is usually paid by the exporters within one week. The company is known for their ability to meet the required export standards, delivering high grade quality Cocoa Beans and cashew nuts. Over the last three years, Bowentech’s turnover has steadily witnessed growth to over N164million as at the end of 2018 season from N43million in 2014. An opportunity to augment working capital during the upcoming season will give the company the ability to increase turnover and increase weekly trade volumes. The Company currently processes over 800tons of Cocoa Bean seeds annually and has a warehouse facility that can accommodate 2,000tons of produce.
Bowentech, in a bid to take advantage of the 2019 upcoming season that will commence in April and keep meeting demand by its various clientele, requires an additional sum of N10,000,000 (Ten Million Naira Only) to augment the company’s working capital.
Borrower – Bowentech Global Service Limited
Loan Size – N10m (Ten Million Naira)
Debt issuance Structure – Units of N1 million each
Tenor – 6 months
Interest rate – 21% per annum
Repayment Interest – Payable monthly
Principal – Bullet payment at maturity
Use of proceeds – Working capital for operations
RISK AND SECURITY
1. Credit risk – is the risk that principal or interest or both may not be paid as at when due.
2. Diversion risk – is the risk that fund requested may not be used for its sole purpose or what it was
initially intended for.
3. Operational risk – is the prospect of loss arising from business processes such as mechanical failure,
human error etc.
4. Inflation risk – is the prospect of loss arising from a decline in purchasing power of money.
The following documentation have been provided to mitigate and significantly reduce the above risks and other uncertainties;
1. Personal guarantee of the key promoter with notarized statement of net worth.
2. Undated cheque(s) for the principal amount.
3. PearlMutual shall continually monitor the business closely by visiting the warehouse regularly and requesting management account information monthly.
4. Notarised letter of stock hypothecation
5. An insurance policy of Bowentech warehouse and produce with our insurance partner – AIICO Insurance Company Limited