Overseas Loans

by | Dec 1, 2009 | Archives

International business can be made EZ with overseas loans.

Here is an excerpt from a lesson in our course on How to Raise Money Abroad

“Loans are easy to attain if you can turn apples into cash”, I thought.

One of the first loans deal I helped organize was for a farmer who specialized in growing apples. He was a brilliant man and knew that the best apples in the world were grown in the Columbia River Valley. He was also a botanist who understood why the apples grew so well there.

As a farmer and businessman, he also understood that orchards in the Columbia River Valley were expensive. He had the brilliant idea to look for land that duplicated the conditions of the Columbia River Valley, but where prices were much lower. He found it in Arizona high up on some hills. He bought thousands of acres and set up an orchard. The apples grew well and he discovered they ripened earlier than Columbia River ones.

It did not take him long to realize that he was hundreds of miles closer to the major California markets so he could get his apples there cheaper and earlier. This farmer was doing fine but needed loans of about a million dollars to expand his operation. Such loans though were too unusual for local banks. Bankers in the Pacific Northwest knew about loans for apples, but not in Arizona. “Loans for what”, they asked.

The loans presentation we developed was one that became a standard for many other loans I helped put organize. It contained a simple four page introductory brochure describing the need for and opportunity from the loans. This was made from one piece of paper, folded once. Then a separate in-depth prospectus or offering circular that covered all the facts and figures of the loans was also created. The idea was that the simple brochure would provide all the key facts about the loans and was designed to excite the prospective lender enough to get them into the deal, or to excite enough curiosity to get those who could make loans to look at the offering circular which would answer any questions the lender might have concerning the loans.

After giving the loans considerable thought, I decided that what had to be sold first instead of loans was-APPLES! And so the brochure described apples, not the loans. I recognized that private lenders who could make loans did not understand how apple growers made money. They needed this knowledge before they could have confidence in the deal and make the loans.

See the entire lesson at How to Raise Money Abroad

May all your business be good.


See more on How to Have an Overseas Internet Business.