What steps are involved to allow short term use of funds
risks and how the money is returned.

“Helping people is a good thing.
Helping people AND getting your money back is BETTER!”

By Tim Roach
Copyright 2009

Information page: What we are doing and why.

Information page: The people we are working with are not looking for handouts, just an honest helping hand.

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Before I start giving the basic ideas of our concept. Let me point out that to use the money in the Philippines I have to exchange money from one currency to another. Since exchange rates are continually changing, I constantly need to compare which company or group is giving the best exchange rates with the lowest over all fees. As I have learned, just because one company had a good exchange rate last week does not mean the same company is the most advantageous rate this week. So while I am going to list basic steps below, I may change the methods from time to time, in order to obtain the best rates we can. (I am also open to suggestions of companies I might not have considered.)

Let’s start with some terms that I will be using:

Block or Cash Block:
A block is $500usd. The minimum about we will transfer between currencies. There can be multiple contributors per block. I will be putting in my own cash to make the blocks even $500 increments, when needed. For example if there are 3 people allowing me to use $100 dollars each, I will put in $200 of my own money to make an even block.

Groups or Cash Groups:
A group is usually made up of 5 blocks Two Thousand Five Hundred US Dollars($2,500.00usd). Ideally minimize fees and transfer charges as well as obtain better exchange rates, we try to transfer several groups at one time.

Fees and transfer fees:
These are charges that other companies charge for transferring and exchanging the currencies. Other than constantly looking for better exchange rates and lower processing fees from other companies, I have no control over these fees/charges. (these third party expenses are also what heavily "eat away" the profits I try to return.)

Holding Account(s):
A secure neutral third party transaction processor. Where the funds are stored until we are ready to transfer the Groups. This also adds security to the transfer, by transferring funds through the holding account rather than directly to me, I never see any of your financial information, no credit card information, no bank account information, nothing. (For both of our security interests I do not want to know anything about your financial accounts.)

I usually I recommend using PayPal. I choose PayPal because it is well established and secure and I have personally used it for several years, as well as helped clients set up PayPal accounts for their businesses.



The steps and what happens:

Once you decide you want to do a good deed, help the people I am trying to help. The best thing to do (before you send anything) is email me so that I can give you up-to-date information as to what our current status is. As well as how best to process the amount you would like to allow me to temporarily use.

Generally, for amounts under One Thousand U.S.Dollars ($1,000.00usd) I will be suggesting for you to transfer the funds into my PayPal "holding account". Larger amounts, I may recommend other methods of processing. Please email me for more information.

After I receive conformation of the funds being in the holding area, I will send you a conformation email.

The funds may stay in the holding account for a while. Usually waiting until the rates are more attractive for exchange to Philippine Pesos. Plus, the funds are safer (and it is physically safer for me) if the funds are outside the country until I actually need to transfer them to the Philippines. While it is not overly dangerous where I am located. As anywhere on the planet, there are a few "opportunistic" individuals and groups. So I try to make any "opportunities" they might consider as difficult as possible. The "fail-safe" procedure I have in place, should something serious happen to me (accidental or otherwise), any funds that are in the holding area will be returned unused (less the transfer fees that are charged by other companies).

When I do transfer the funds, I will inform everyone involved in the Cash Group(s) transfer of the exchange rates, fees paid for the transfer, how much was received once the transfer was complete, as well as other pertinent information.

As with any business venture there is risk.

The greatest risk, is the risk to myself (literally my life). There are some locations here where, people will not even blink at killing a person for 500 pesos (about $11usd). Since we are "stepping on the toes" of some very bad people the risk obviously increases. However, I try to do everything I possibly can to minimize the risk. From avoiding overly dangerous areas and situations, to making the funds as invisible as possible. Very few people know (or can even guess) when the funds are moved into the country and even fewer know where the money is located. Until we physically pay the grower. We also always rotate the payment location, to minimize risk.

As for the less dramatic risks, such as quality of rice, prices etc. The quality of rice obviously fluctuates from season to season as well as the price. However, since we are the buyer, and not the grower, if the quality is to low or the price to high, we can avoid many of the less advantageous deals. Since we started we have been "taken" a few times (usually not bad, only lost a little, in most cases we broke even). However, each time we made a mistake, we learned important lessons. Each time taking steps and creating/modifying procedures to make sure we do not make the same mistakes again. As a result, it is not very often that anyone sneaks anything by us these days. Plus we, obviously, tend to avoid working with the dishonest growers a second time. Though we learned valuable lessons from the less honest growers, we also think it is best to let them work with the dishonest buyers.

The drying and milling stage has relativity minimal risk, though we do keep a close eye on the work being done, to insure quality.

As for the sales stage, as stated on the other pages, most of our sales are going to area restaurants. This gives us a fairly stable and consistent sales base. We are also expanding into the retail convenience and grocery store markets. As we build the reputation for having a consistent and good quality, as well as being able to supply the volume, there is the potential for supplying some of the regional/national retail chains with rice.

After we make the sale(s) at the retail level, I am finished with your funds. And will start the process of returning the money.

The first step in the return process is waiting for the exchange rates to be advantageous to transfer the money from Philippine Pesos back to US Dollars. I also compare the transfer companies to try to find a company with the best exchange rate as well as lowest fees at the time of transfer.

Once we start the transfer process, I will email everyone in the Money Group(s) the information regarding the amount we are transferring, the fees we are being charged, etc.

Once the money gets transferred back into US Dollars I will move it to the holding account and distribute the funds back to each member of the money groups and blocks.

My goal is to not only return the money you allowed me to use but also include some interest (I can not guarantee either but that is my goal and sincere intent). Obviously with profit margins that are tight, a lot/most of the profit is "eaten up" in the exchange rate and transfer fees. This is why I am constantly looking for methods that minimize costs and maximize the returns. (realistic suggestions are welcome.)

With this Business Venture I not only want it to help people, but in the process I want all of us to come out ahead.

I am sure you have many questions, please feel free to email me. I will try to answer quickly, but sometimes it does take me a few days to get to the emails. So please be patient.


helpinghand.jpg
“Helping people is a good thing.
Helping people AND getting your money back is BETTER!”



Information page: What we are doing and why.

Information page: The people we are working with are not looking for handouts, just an honest helping hand.


helpinghand.jpg
Helping Hand
Donation Page

Return
Home
Philippine
Project
Main
Page

Email
mail
PHproject@
troach.org



Page Last Updated: 2/25/2009 3:00:06 PM