Wakala; participation in the purchase/sale of cars via SB Automotive
SB Automotive (SBA) is an established company in Zuidland, specialized in the purchase and sale of passenger cars. The focus is on the mid-range segment, with a price range of €10,000 to €100,000. The range consists of reliable family cars, comfortable sedans and luxuriously equipped models that combine quality and affordability. SBA strives for an excellent price-quality ratio, personal service and a transparent buying experience.
Due to the growing demand, SBA wants to expand its fleet. That is why the company is looking for investors for a temporary collaboration of 3 years.
SBA is headed by three owners. Two have completed a HBO education in Logistics and one of them completed a study in International Business Management. They have been active in the automotive industry for years, where their passion lies. SBA's goal is to become a trusted address for every car enthusiast.
The collaboration takes place on the basis of a Wakala (power of attorney) agreement. This means that the investors' deposit is managed by SBA to purchase and sell cars, with the proceeds being divided; 60% for SBA and 40% for the investor.
The investors' investment is managed separately and is not combined with other funds or assets of SBA.
You will not receive shares in SBA; this is a temporary collaboration. After three years, the investment will be fully repaid and you will enjoy profit distributions in the meantime.
The offer
SBA wants to raise a maximum of €250,000.
You can participate from €20,000.
The money will be used to buy and sell cars, with the following Return on Investment (ROI) expected for the investors.
Year ROI
1 36%
2 41%
3 41% and full investment back
The underlying figures for calculating the ROI are explained during the online information sessions.
Below you will find answers to frequently asked questions:
What is the Chamber of Commerce number of SBA?
The company is located in Zuidland and is registered with the Chamber of Commerce under number 94924937.
Website: https://sbautomotive.nl
What is a Wakala?
Wakala literally means power of attorney. With participation, you give power of attorney to SBA to buy and sell cars with your investment for three years. The funds are managed separately from other activities within SBA, which will also be shown to you periodically in a transparent manner.
Why does the entrepreneur get 60% and the investor 40%?
The proceeds are divided based on this division: 60% for the entrepreneur and 40% for the investor. Afterwards, everyone gets their investment back. The entrepreneur gets a higher percentage because indirect costs are not charged during the three years and they are borne by themselves. Only direct costs are included, such as: advertising costs for these specific cars, collecting the cars and the like.
What is the potential yield with an investment of €250,000?
The expected returns are discussed during the information sessions.
The ROIs mentioned are based on a total investment of €250,000.
Is the return guaranteed?
No, the return is an expectation based on multiple purchase and sales cycles over three years. SBA has extensive experience, which helps to effectively manage risks and unexpected scenarios.
Will I become a co-owner of SBA?
No, this is a temporary collaboration of three years.
Are the cars collateral for the investors?
Yes, the investors have the first claim to funds from the sale of the cars if the Wakala is stopped earlier, for whatever reason. As a result, the cars are collateral for the investors and this is included in the Wakala agreement.
How often will I be informed as an investor?
You have direct contact with the owner of SBA. The frequency and form of communication are determined in consultation, for example a quarterly consultation.
Is a temporary collaboration Islamically permitted? Yes, a Wakala agreement is Islamically permitted.
The agreement still needs to be drawn up, pending registration of participants. After that, the agreement will be drawn up, of course Sharia compliant.
How can I find out more and/or participate?
We organize online information sessions in which we answer all your questions.
Would you prefer a 1-on-1 conversation with the owner? Let us know via WhatsApp on +31639243751 and we will connect you directly.