I’ve got a reply from the management of Olive Green after my previous post on its crowdfunding loans on Capital Match and MoolahSense platform. For readers of the blog, lenders to Olive Green, I’ve reproduced its reply in full below.
Dear Sir / Mdm, I am Aloysius and I represent Olive Green. There is probably one corn starch company here locally and so that helps with the guesswork. I understand where you are coming from based on the occurrence of events that took place. I have also replied your email in details on what and how we use the funds for in Moolah’s forum.
For the public nature of your blog here and the implications involved, I wish to address the concern here again for those who are not registered users on Moolah’s post.
1) We had planned on how we want to use the raised funds this year and the next, and the 2 crowd funding companies are working closely with us to meet our goals.
2) Funds are used for cash flow of larger orders and development of new products. More details are found in my reply to you. This has also been made known to both platforms from the start. We grew from one brand and one product to 6 brands and more than 70 product types across 3 industries. I think it’s a testament in itself.
3) First project with CM was undertaken in June, meant to be completed in Sept which we did. The cheque for full principal repayment to CM investors was already prepared in advance before Moolah’s campaign kicked in. Due to existing protocols of their company, we can only wait for a later date for repayment. Given the level of transparency in this trade, it will be easy to check. If we had to take one to give back the other, we would have waited for Moolah campaign to complete before settling with them.
4) We wanted to go forth for a second round of a few campaigns as planned, after the first one with CM, but Moolah came into the picture. Put it this way, different company, different packages offered with different strengths. We then did one with the latter.
5) The other campaigns were thus taken up with CM but also within controlled limits set by them. There will be more to come set out at different time of this year and next based on our forecasted needs. Pls note that all are done within our comfort zone.
6) We know what we have signed up for right from the onset. An investor with CM can be an investor with Moolah and perhaps with other platforms as well. Why so? Possibly to spread risk, comparison of returns? We are the same too. For the larger sales contracts and projects which we have in mind, we cannot simply reply on 1 financier, bank or crowd funding source. Anyone who runs a company will know what I mean. Since we are running a legitimate business with our accounts audited right from day one, we are not afraid to utilize the services of both companies where we know both might be aware of each other’s projects. Besides all loans are taken with a personal guarantee basis. Thus you need not have to worry about the hot potato in the end, it will never exist.
Both crowd funding platforms have operated very professionally. They asked for relevant and the most updated accounts before they commit to any funding. They too have a reputation at stake.
It was not easy in the initial years when we really had to take on some of the toughest costings to bring forth an affordable product to the masses. Wouldn’t you agree cash flow problems would be trickier then?
We are have been growing in strength since 2008 official with rising sales and better bottom lines. Our products are out there in the open, locally and internationally, for people to see and you could be a user of or products . We have worked hard to gain the consumers support. Now that we have engaged the masses through crowd funding, some of those users could be investors themselves. We have a heavy responsibility towards those who trusted us with their investments. We are not going to ruin that trust.
I hope that I have addressed your question duly, and have shared our side of the story before any conclusions can be derived too quickly.
Let’s Crowd Smarter:
Since I am not a lender to Olive Green and the management has shared its side of story, I’ll consider this case closed.