Post: Drowning in milk

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avatar image David Costa
Investor
Level 6
  Drowning in milk
Posted 08.04.2009 00:32 CET | Edited 28.12.2014 21:10 CET


Quote from: Ebony Capital Enterprise Limited on 26.03.2009 15:39 CET

Following comments posted here on similarity of the some businesses. I have done some checks with our field officers. The Dj photos were taken during a Djeeing competition while the dairy farmers photos were taken during a farmers’ field day.  We have taken measures to ensure that in future all photos are taken at the clients’ specific business premises. The similarity in the loan amount in some businesses has been caused by the fact that Ebony places maximum loan amount cap in certain business sector and in all smaller loans. We shall do our best to give investors as much details as possible while uploading to avoid any confusion.

As Jonny noted we are all focusing on the missing middle and we try to identify businesses that have a growth potential.

James

Yes James but a DJ doesn't need 10+K Euro to start. Not in Africa nor in Europe - there is something
wrong with this. They have no serious collateral and if they can't start their business with less.......
I wouldn't give 10,000+ Euro to an aspiring DJ on some bold promises that he is going to bring business.
I don't see how this business model will work but users keep investing on everything so perhaps it is just
me...
Cheers
David


Quote from: Ebony Capital Enterprise Limited on 26.03.2009 15:39 CET

Following comments posted here on similarity of the some businesses. I have done some checks with our field officers. The Dj photos were taken during a Djeeing competition while the dairy farmers photos were taken during a farmers’ field day.  We have taken measures to ensure that in future all photos are taken at the clients’ specific business premises. The similarity in the loan amount in some businesses has been caused by the fact that Ebony places maximum loan amount cap in certain business sector and in all smaller loans. We shall do our best to give investors as much details as possible while uploading to avoid any confusion.

As Jonny noted we are all focusing on the missing middle and we try to identify businesses that have a growth potential.

James





avatar image Ebony Capital Enterprise Limited
Provider
Level 10
  Drowning in milk
Posted 26.03.2009 15:39 CET

Following comments posted here on similarity of the some businesses. I have done some checks with our field officers. The Dj photos were taken during a Djeeing competition while the dairy farmers photos were taken during a farmers’ field day.  We have taken measures to ensure that in future all photos are taken at the clients’ specific business premises. The similarity in the loan amount in some businesses has been caused by the fact that Ebony places maximum loan amount cap in certain business sector and in all smaller loans. We shall do our best to give investors as much details as possible while uploading to avoid any confusion.

As Jonny noted we are all focusing on the missing middle and we try to identify businesses that have a growth potential.

James



avatar image David Costa
Investor
Level 6
  Drowning in milk
Posted 26.03.2009 13:19 CET | Edited 26.03.2009 13:20 CET

Dear Johnni,  $0Many thanks for You are certainly right - I wasn't aware of the "missing middle" principle, sorry if this created some confusion.  Indeed the type of activity is not for me to judge. What was/is concerning is several projects with similar amounts and very similar photos :)$0 $0Regards $0 $0David Costa$0



avatar image GrowthAfrica
Provider
Level 10
  Drowning in milk
Posted 26.03.2009 08:24 CET | Edited 24.08.2015 13:45 CET

Hi David,

Sorry, I can't help but commenting on your "this is not microcredit" statement.

MyC4 was _not_ created to serve the microentrepreneur/-enterprise market; but rather the "missing middle", i.e. loans that fall inbetween what is serviced by MFIs and commercial banks. This typically means EUR 2,000-50,000; but often you would want to start providing smaller and short-term loans first, and then once the microenterprise has grown to a small enterprise assist it grow even further and become a medium sized enterprise.

Seen from this end - the more business, the more locally generated revenue, the more employment created - the better! And if that is DJ'ing, dairy farming, hair dressing or providing broadband Internet matters much less.

You should naturally still be critical and ask yourself if it really makes sense for 3 DJs to sustain, relative to their business and circumstances, large loans.

Kind regards,
Johnni Kjelsgaard



avatar image David Costa
Investor
Level 6
  Drowning in milk
Posted 26.03.2009 00:13 CET

Hello,
I am not very enthusiast about the DJ deals. It is concerning. I don't think that 12,000 euro for
this type of activity really fits well within the microcredit idea. It looks more like a jumbo credit
to me !

Even in my country (Switzerland) you can certainly start a DJ activity with way less than that.
I am not really concerned about defaults but I am about loan that might not be entirely
sincere.

Hopefully myc4 will be looking into this.
Regards
David



avatar image Kira G
Investor
Level 7
  Drowning in milk
Posted 25.03.2009 10:48 CET

My guess would be that it's more efficient for Ebony this way. Now they only have to look into the budget one time. Just check the prices of DJ equipment once and so on.

Still, by now they should know that uploading 3 similar opportunities with same closing time is a bad idea. Especially when the wanted interest rate is rather low for a loan that big.

I wonder at some of the numbers in the budget though, why can one of them get "2 full range powered speakers" For 120000, while the two other have to pay 280000 for 4...
That being said I could have wished for more information, these are large loans. For the two who rents their equipment it would have been nice to know how much they estimate that they pay for it now, since that is a clear and immediate saving. In general large investments like these should have more description of the business plan. I don't expect it when people loan 250 Euros but the they ask for 16,000 Euroes I think a more detailed business plan would be appropriate.



avatar image Peter K
Investor
Level 10
  Drowning in milk
Posted 24.03.2009 16:11 CET | Edited 23.05.2013 23:54 CET

On closer inspection, the photos os the 3 DJs are also taken in the same room. The headphones they are wearing also seems alike...This is the 3rd example I have seen of Ebony presenting 3 opportunities with identical setups: same business plan, same loan amount, same photo location. We've seen it with land rental, dairy farming, and now DJs. I do not find this wholly reassuring. Without explanation this could seem like a case of Ebony being a bit too creative in actively pursuing new opportunities.



avatar image Jean-François Corbett
Investor
Level 10
  Drowning in milk
Posted 24.03.2009 12:16 CET

Ironically, one of the three DJ loans is for a business that rents out equipment to DJs, and the two other loans are for DJs who want to buy their own equipment so they don't have to rent anymore (from the 1st business?)...

It's a dog-eat-dog world out there in DJ-land!



avatar image Philip Budden
Investor
Level 10
  Drowning in milk
Posted 24.03.2009 11:44 CET

And this week we are drowning in disc jockeys who each need a loan of 16,130 Euros.

Not popular, it seems.



avatar image Waya
Investor
Level 9
  Drowning in milk
Posted 10.03.2009 18:10 CET | Edited 10.03.2009 18:18 CET

@Dorte:

This might be the link you are looking for?
https://www.myc4.com/Portal/WebForms/Forum/DisplayForumPost.aspx?ForumPostId=6604
There was a campsite closing saturday, I believe it is also part of the project:
https://www.myc4.com/Portal/WebForms/Opportunities/ViewOpportunity.aspx?OpportunityId=4854
Apart from these, I guess well be seeing more of this businesses in the future, probably not all as large as these.

@Jean-Francois:
I wouldn't worry too much about the pictures - a reasonable explanation would be they are part of the same project, and their cases have been dealt with at the same time, and their picture taken at this occasion.

I agree it is a problem that so many large and similar opportunities close at the same time; I have said so on Ebony Foundations blog, and my understanding is, they will consider it in the future.

(And if you are worried about the pictures, you might want to ask the question on their blog, or post a link here - Ebony Foundation seems to actually answer questions on the blog :)
https://www.myc4.com/Portal/WebForms/Users/DisplayUserBlogPost.aspx?BlogId=4878&PostId=3754 )

That said, I don't think there's any real danger anyone will drown in milk - on the contrary, they may be able to have advantages by having much dairy farming in the same place; such as having a dairy and other facilities nearby.


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