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New Approach Car Trading (NACT) seeking RM300K startup fund

New Approach Car Trading (NACT) seeking RM300K startup fund

Project Cost: RM300,000.00

Amount Invested : nil

Amount Required : RM300,000.00

Knowledge / Experience Required:n/a

Proposed Investor’s Role: as consultant

Industry:
informatics / multimedia
internet
trade
consumer goods
financial services

Project Stage:
start-up

EXECUTIVE SUMMARY:

Company History:

A successful concept implemented and established in 1995 by The Founder who owned a used car and a credit companies and a group of Proffesionals comprising of Bankers, Accountant and Lawyer. It was a hit and instantly accepted by the general public and business flourished to more than 10 J/V outlets by 1997.
Unfortunately it could not sustain the 1997 ASEAN Financial Crisis and folded in year 2002.

Product / Service Description:

Cars. What is the 1st feel of being in dilemma that comes to your mind when you have made your decision on a new car Model to change?
Right. It’s your existing old car. How much will I be offered? Where or who to go for the highest price? Will I be short changed, cheated, conned?
Will my car ownership be transferred? And my existing bank loan balance settled? What about illegallity activities involved with my car after handing over?
All the above problems and doubts eradicated with NACT.

Business Opportunity:

Car Brokering. Outsourcing of inspection, refurbishment, warranty, JPJ work and end financing with a SOP win-win smart Partnership MOU to and with relevant business Operators.Due to the present scenario where most cars own banks more than its market value and Owners who;

(1) Wish to change car
(2) Do not need the extra car
(3) Could not afford bank installments much longer have no where or way to go.

NACT is the solution and the way to go.
A 1st year business volume conservative figure of 0.001% of the 1 million annual used car market worth rm20 billion work out to 100 units or 1200 units a year. Averaging rm20,000.00 per unit wouldl be rm24 million business turnover on the 1st year.

Revenue Model:

Fee & commission base orientated with trading profit. Almost wholely Internet operated Programme.
Fees, commissions & profit received from;
(1) New Car Dealers
(2) Used Car Dealers
(3) FI of Banks and Credit Companies
(4) Insurance Companies
(5) Used car Buyers

Management Team:

(1) Head of operation (1)
(2) IT Personnel (1)
(3) Customer Service (2)
(4) Driver (1)
(5) General Asistant (1)

Current Status:

Start Up. With a readied Funder revolving credit of rm2 million.

Funding Milestone:

(1) Company registration
(2) Back stage office with F & F
(3) Computers, Smartphones and wifi data packages
(4) Website Domain, Creaction & Programming
(5) Expenditures & Overheads for 6 months

Business Valuation:

20%. The rm2 million revolving credit Funder of 30% equity is verbally agreed upon and to take effect once this Programme materialized.

Expected Return On Investment: 50% ROI.

Investment Risk and Mitigation:

The mitigation of risks in this proposed Investment opportunity only needs consideration when the Management Team is not on track with the SOP. Likewise the interference from Investor with orders to alter the modus operandi is a serious risk factor. NACT is a fee & commission base business Programme. The holding cost risk of unsold inventory in the form of used car stock lies with the revolving credit Funder. Malaysia used car Industry is here to stay. Where there is new car, there will be used car. The Industry will not go obsolete. Last but not least, to avoid mitigating factors from arising, a very clear and precise MOU of respective responsibilites & liabilities if any from the Investor & Entrepreuner to be drafted and signed.

Exit Strategies:

1 year. The honorable Investor may exit after 1 year w.e.f. the date of the 1st used car successful transaction, subject to a 3 months grace period to finalized pay back premium amount accordingly.

CONTACT PERSON

Kim Choong
Kuala Lumpur