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Cashpot Ltd is a money transfer intermediary based in London, that helps high street money transfer companies send money to African countries safely and securely. It is looking to raise £50,000 through rebuildingsociety.com so the company can grow by establishing distribution channels in two more African nations. Banking in Africa can be a complicated business, so Cashpot Ltd was established to eradicate some of the perceived delays in settlements experienced by high street money transfer companies and their customers. Cashpot is registered as an authorised payment institution in the UK and Kelvin Orogun, Cashpot’s managing director, recognises the value of trust and integrity when connecting financial institutions hundreds of miles apart. His team’s knowledge of local law and regulation helps high street money transfer companies operate effectively. In return, Cashpot charges 1 per cent on balances transfers, and addition margin of between 0.25 and 0.5 per cent on foreign exchange bringing total fee to average 1.35 per cent on volume traded. And it’s a growing market. Africa boasts impressive growth rates against a backdrop of global economic slowdown and is forecast to grow by 7 per cent as a continent by 2015. Kelvin estimates there to be 1,000 money transfer companies, with only a quarter covering Africa, so he is well places to capitalise on further inward investment. Growth plans Kelvin says the company has done the hard work establishing its reputation in the market and is now looking to expand into more countries with the help of a loan: “We have two routes to growth; more clients and more channels. This money will help us offer new countries to our existing clients and attract new ones who want to easily send money to Gambia, Ghana and Sierra Leone,” he said. Kelvin is looking for £50,000 to establish relationships with banks in two of these countries, with a further link to be created later in 2013. Part of a condition of working with these banks is that roughly £20,000 has to sit in a ‘pre-fund’ pot, which serves as insurance for the bank against forwarding advances. “This money is an asset to the company, but without it we face a barrier to growth. The cost of establishing a relationship is considered to be £5,000. That includes initial phone and email work culminating in a site visit to sign paperwork.” So how does Kelvin foresee growth on the back of these relationships? “I anticipate us to oversee the transfer of £100,000 a month for the next three months, rising to £500,000 within six months. This will represent healthy growth for the business.”