Arbitrage Opportunity - Business Loan for R1 million, paid back within a month.

[Sly21C]

Hi All,

So I have discovered an arbitrage opportunity in the financial industry. I won't go into detail about the opportunity because someone can easily copy it , but it basically involves me sending money overseas, buying an asset and reselling it back locally after about 5 or so days. The profit margin is about 1,5%, and because the profit margin is almost guaranteed (96% guaranteed) I think it's something to look into. I've done it before using my own money and as a citizen The main issue is that I am limited to sending money overseas at a maximum of R1 million a year.

My question is, is it in any way possible to get a business loan of a minimum of R100k and pay it back within a month? It would be great if I could borrow R1 million, the said amount will be paid back within a month also.

I currently don't have any business registered in my name, and I am aware that business loans are awarded only to businesses that have been in operation for at least a year.

Regards
Sly21C

[adrianh]

LoL - speak to your Nigerian cousin

[Dave A]

it basically involves me sending money overseas, buying an asset and reselling it back locally after about 5 or so days. The profit margin is about 1,5%, and because the profit margin is almost guaranteed (96% guaranteed) I think it's something to look into.

At those odds it is not worth looking into, let alone actually doing. I strongly suggest you let it go and move on.

[Sly21C]

At those odds it is not worth looking into, let alone actually doing. I strongly suggest you let it go and move on.

I have done it, and have succeeded. The only issue is the R1 million annual limit.

So you're saying, in your experience, there's absolutely no way to get funding?

[Dave A]

Risk R1 million for a potential R15 000.00 return?
Or is that a share of R15 000.00 if I am financing you?

Take that to the bank and they're going to want security for the bar.
Take that to the Dragon's Den or any angel investor and they'll be wondering who let you through the door to waste their time.

If you've done it before, keep reinvesting to build your stake if you have so much confidence in it. Hope you make a fortune, but the risk vs return profile does not appeal to me.

[Blurock]

@Sly21C, you have the right name.