Management as collateral.

Administrative Sequencing Delay (ASD factor).

ALWAYS READ THE FINE PRINT o Financial Intermediation Refers to the process of 'Indirect Finance whereby intermediaries such as Banks and Insurance Companies link savers to borrowers, by borrowing funds from the former and making loans to the latter. o Financial Intercession Comes from the stable of 'Direct Finance' covering collateral instruments- guarantee, surety-ship, and indemnity. Its self meaning to 'Plead for another' or ask a favour from one person for another. Intercession has never been commercialized while still preserving its characteristic of generosity, BLH is the first such entity in the world to do so, as new innovation excellence in the financial services industry to challenge the traditional status quo of the banking monopoly.

BLH beneficiaries. In any business the most important question one must answer is the benefit derived by a prospect purchasing a product or service. The answer to this question can decide the fate of the entity between success and failure. The more the need or want of a product or service occupies the lower order of Maslows hierarchy of human needs (food, clothing, and shelter), the more the entity is likely to succeed. The most basic needs being bodily drives, such as hunger and thirst. This products cannot be found in the streets for free, in as much as, the ancient barter system is now obsolete. BLH provides the resources necessary to procure the inputs to satisfy the above mentioned needs and it goes without need for argument that the entity is highly geared in the right direction to even satisfy the higher order of needs, the highest need is for the fulfillment of ones unique potential which Maslow called self-actualization. BLH product or service is an intangible asset or lending money to the unbanked in a special way that differentiates it from the conventional banking fraternity. The latter are heavily regulated because they use deposits, which at the end of the day must be returned to owners. It is this laws that make it impossible for the Excluded and Invisible or the unbanked to access funding from these institutions. BLH is not a panacea to the problem of intermediation (intermediating between depositors and borrowers), what it has done is to develop a unique financial intercession services refer to the definition of intercession hereinbefore intimated at the beginning of this policy guidelines, designed to accommodated the unbanked along with their known risks credit worthiness.

Havillah, peoples Banca at last.

Management as collateral.

The service is membership driven where one must be a member to Community Empowerment Fund (CEF) the work horse of BLH source of grants. Next the member is expected to contribute a certain amount throughout the life of the membership (renewable in annual installments). As the definition of intercession says it, at any one time, the contribution of any member is not meant to support the immediate needs of the contributing member. The contribution is meant to support someone else. The immediate question then arises; can a minimum contribution of say R150.00 as a once off contribution support such member? When does one qualify to receive support from CEF fund once a member? The answer to the former is NO; of interest to us should be the latter. BLH has in place whats called Administrative Sequencing Delay (ASD factor) in the same way that insurance house require a minimum paid-up period before the policy has matured, and in the case of banks credit rating or prior credit record with other institutions before they can extend credit to a prospect. All what BLH wants is a persons commitment to help others measured in terms of size of contributions portfolio. This is the period at which time the ASD factor kicks-in. This period can be considered as insurance to ones ability to raise a loan during times of need. Alternatively, nurturing ones credit rating over time for the rainy days. Although ASD may look like it is a long term investment lookalike, in actual fact it is not, for one big reason, in order to reduce the waiting time under ASD, lets remember that member contributions accounts for 30% of the total capitalization of CEF fund. It would be unfair that the burden carried by the remaining 70% of the contribution to CEF fund from alternate revenue streams be tight in grants made to members who do not show commitment to the scheme by sharing in the risks of the venture with higher contributions on their part, the very reason why the banks do not touch the Excluded and Invisible or the unbankable, and insurance companies requiring long term investors (typically 5 to 20 years on mandatory monthly premiums) before maturity, in both cases, to manage their risk exposure to this market. Vehicle and property insurances carry a burden of heavy monthly premiums and for that matter compulsory on bank assisted purchases along with high interest rates. The alternate revenue streams mentioned hereinabove comprise shareholders loans, international markets (franchising revenue, licensing fees, and royalty), networks (competition, promotion, Web Interface and aggregation- ISP services), foreign donors, government subventions, investments, etc.

Havillah, peoples Banca at last.

Management as collateral.

As a yard stick, benevolent contribution of a member must be above a thresh-hold of 15% of what a member will ultimately seek as benefit from CEF fund, e.g. if a member seeks to sort M5000.00 to pay school fees in three (3) months time since last CEF fund assistance, the member must have accumulated M750.00 as benevolent contribution into CEF fund over that time. A member may use a portion of accumulated contribution account say M500.00 of M750.00 against a CEF benefit of M4250.00. Only a balance of M250.00 may be carried forward, but must be used within 12 months before it lapses into IPO mandate funds. If a member seeks M5000.00 of assistance from CEF fund without ASD factor, immediate payment 15% of monies required as assistance must be paid as advance benevolent contribution upon which a compulsory 7 day waiting period shall apply to process all documentation necessary to give effect to the request. The 7 day applications which are equivalent to surrender of an insurance policy (i.e. pledged as security before maturity) are for urgent funding assistance and a valid reason shall be required (documentary proof which can be verified, e.g. school fee arrears with warning to expel the child, court order, family bereavement limited to close family members e.g. spouse, mother, father, brother, sister, child, etc.) BLH is not a bank but a revolving fund lookalike scheme of its kind to assist members facing a credit crunch merely on account of their disadvantaged economic social strata. Since they themselves raise the necessary capital (CEF funding) to assist themselves better explained in the slogan lets rid ourselves poverty, by ourselves, our way, a delicate balancing act had to devised between commercializing philanthropy and keeping its benevolent qualities. In other words, while under the scheme grants do not attract interest, first class collateral, credit checks including credit bureaus, and strict regulatory regime requirements found in the banking industry, the entity must make money to finance its unique complex management machinery. Such walking on a thin line is explained herein below. Assistance above M5000.00 which is the minimum grant under the scheme shall carry a prorata 15% compulsory benevolent contribution (CBC) spread over the time a member is able to accumulate the said monies (ASD factor). Grants, which are administered in a revolving fund lookalike format, must be paid in full as contribution until amount equals the value of grant extended to member in such way that the 15% benevolent contribution remains as balance throughout the live of prospects membership which cannot be refunded in any way whatsoever as this amount represents what is known as Intercessors Equity. In other words,

Havillah, peoples Banca at last.

Management as collateral.
the 15% ASD factor is a residual amount which is cumulative. Put simply, it does not form part of settlement on the grant assistance. BLH uses Management as Collateral to ensure that the revolving fund lookalike features of grants is guaranteed. This arrangement goes to the heart of the BLH scheme which differentiates it from the resent of the pack (financial services or competition). Businesses prospects are required to register a company and reserve 51% of equity to be held in trust by BLH during the life of the grant. Once the grant has been paid, the 51% reverts back to the owners. Members who seek BLH support initially must be in the employ to qualify for a grant. In all cases a management contract is necessary with a mandatory mentorship who acts as over-sight officers. Other products are being developed to assist other category of members who pose even a higher risk outside these mentioned lot of target groups. Example 1 [Business prospect application] Company with 51% held in trust by BLH. Management contract (grant assistance protocol). ASD factor (15% up-front payment + membership fee+ service charge). Development Levy (5% of total grant awarded as settlement in contribution) Mentorship. Viable proposition (business plan).

Example 2 [Individual prospect application] Employment details (salary, conduct). Employer/BLH contract (deduction agreement). Employee/BLH contract (grant assistance protocol). ASD factor (15% up-front payment + membership fee+ service charge).

Havillah, peoples Banca at last.

Management as collateral.
Mentorship (BLH contact).

BLH should therefore be considered as a vehicle to revolutionalise the financial intermediation by bring on-board the Excluded and Invisible or the unbankable in return upping their so cial strata or improving their economic standing in the society in a way never done before. We cannot therefore commit this market to a pool of borrowers locked in a vicious circle of debtors . We have to empower these people; this brings us to the sole purpose of retaining the ASD residual in order to build a solid capital base of the scheme. With a strong capital base the company can invest in other ventures such as National Lottery under the lottery Act of 1973 and a Credit Bank under the financial Institutions Act 1999. At that stage our members would subscribe to a public share offer within BLH group of subsidiary companies. Your contribution not only helps you with your immediate credit needs, it is also a long term investment as enshrined in the slogan lets rid ourselves poverty, by ourselves, our way. Public share offer in BLH itself begins two (2) years after the launch of the project. This commitment has been well advertised during the building of BLH brand in the Informative Newspaper and its sister Finite magazine. We want to come back to the ASD factor once more so that everything is very clear. We said that ASD factor in money terms does not form part of settlement of the grant awarded; it is retained every time a new grant is disbursed and settled, as intercessors equity in the BLH system to justify the Tithe ( Hebrew word for tax to help the poor, the first philanthropic enterprise known to date). There is no catch, the benefits are insurmountable, and have a look for your yourself, plain and simple:
BLH benefits versus commercial banks CEF assistance is not a loan but a grant, which is not repayable. Beneficiaries, once out of their financial demise are expected to support CEF fund in order to assist others by committing to larger contributions until amount equals grant awarded in a revolving fund lookalike format. No interest paid. No insurance paid. No bank fees paid. No liquid security or collateral requirements. No credit checks on your passed business dealings or personal transactions. No credit checks with credit bureaus. No gender or economic classification.

Havillah, peoples Banca at last.

Management as collateral.
No political allegiance. No restrictions on grants. No queuing Full Internet Website interaction services. No appointments Full Internet website interaction services. Client service Help Desk (58844882) SMS driven communication centre. Mentorship Business and personal consultancy assistance. BLH ownership scheme rip the rewards of being a member by taking equity. Exempt from CBL Financial Institutions (Know Your Customer) Guidelines 2007. Exempt from CBL Financial Institutions (Internal Control Systems) regulations 2000. Exempt from CBL Financial Institutions (Anti-Money Laundering) guidelines 2000. Exempt from CBL Financial Institutions (Liquidity requirements) regulations 2000 Exempt from Financial Institutions (Ancillary Financial Service Providers) (Licensing requirements) regulations 2003.

We now come to the final part of our policy directive under ASD protocol, that of Initial Public Offer (IPO). To us IPO means intercessors equity which was not pledged against a grant award for a period of twelve (12) months or continuous contribution for 12 months without seeking a grant. In financial terms IPO means unencumbered intercessors equity for which the member is rewarded by converting this amount into an investment tool in the BLH group of companies. The legalism surrounding IPO is such that this amount remains intercessors equity until a desire by the member is expressed to be considered under IPO mandate. At that point the intercessors equity now IPO is reclassified as cash for the subscription of equity - ordinary shares, along with the requirements of the Companies Act of 1967 as amended in the BLH group of companies as per the prospectus to be published as hereinbefore intimated. In this transaction BLH does not act as an agent or broker other than act on the instructions of the member regards IPO mandate. The process narrated here may not be manipulated to offer something else but IPO mandate as described in this part. In as much as, no cash resources from members shall be accepted for equity subscription other than through the IPO mandate investment vehicle.

Havillah, peoples Banca at last.

Management as collateral.
IPO mandate is BLH empowerment tool mentioned hereinbefore to liberate the Excluded and Invisible or the unbankable from poverty enshrined in the slogan lets rid ourselves poverty, by ourselves, our way. Once the intercessors equity cash has been converted into an IPO mandate, the residual is reduced to nil balance and the member is expected to continue to build the intercessors equity towards the contribution size with a thresh-hold of 15% plus 10% Tithe of what a member will ultimately seek as benefit from CEF fund. The minimum investment required for IPO mandate is in trenches of 1000 shares at R1.00 each valued at R20.00 a share in todays prices or R20 000 (BLHs current share price). If the amount of IPO mandate transaction is more than R20 000 but not sufficient for the next trench of shares, the balance remain in the pool of intercessors equity and available for a grant if the member so wishes. Other than intercessors equity being an investment tool under IPO mandate it will also be used to support competition and promotion in a complex permutation to extract sufficient funds for community empowerment projects. The initiative is to be known as Development Levy of which about 5% of grant awarded to business shall also be set aside for this purpose. In this stable of community empowerment, BLH plans to promote Business Plan Challenge or BPC as a driver for employment creation with M20.00 million of prizes for the winners is earmarked as the budget for the initiative in partnership with commercial banks, parastatals and foreign donors including multi-lateral agencies. BPC is designed to award money to the best business plans likely to create employment in the key sectors of the economy to benefit the rural populace of the nation. E.g. crocodile farms for meat and leather, snakes farms for leather, and medicine (Vernon to break down certain medical formulae), grape farming wine, fruits, Ostrich farm (feathers, meat), turkey birds farms (Export business to US under AGOA 4th July independence celebrations product), free range chickens organic meats processing plant, etc. All of these businesses are to be rural based, free range where applicable e.g. turkeys. The choice of the projects amongst others must deliver or liberate Lesotho from South African economic stranglehold once and for all. Development levys sole mandate is to win the hearts and minds of government and foreign donors (e.g. MCA poverty alleviation, SACU development levy, ILO women and girls empowerment, etc.) that BLH has the capacity and the infrastructure to be trusted as a partner in development to deliver quality development service of empowerment to the rural community that can put Lesotho on the road map of a notch-up from the least development state or a poor nation to a developing nation in 2020 by accelerating the achievement of the goals of the countrys 2020 National Vision agenda.

Havillah, peoples Banca at last.

Management as collateral.

We would not have done justice to our campaign to promote BLH brand, if we didnt discuss the emotional tantrums of prospects based on selfish attitude towards anything that breaks the rules of normality. The Bank brand name has been build over 410 years and one can understand why even the regulatory authorities zealously protect the banking industry amongst others on account of the name Bank. Whats not clear is why philanthropic brand which is far older than the Bank brand name has lagged far behind the banking industry and yet it is the most important tool in the empowerment of the poor. It remains the back bone of development efforts to rid poverty in the worlds poorest countries as grants and aid. We now know why, for one thing, Philanthropy has never been commercialized while still preserving its characteristic of generosity, BLH is the first such entity in the world to do so, as new innovation excellence in the financial services industry to challenge the traditional status quo of the monopoly of banks. BLH band is rooted in the altruism of its members while banks, in the words of Sonneborn, one of the founders of the McDonald Restaurants once said in 1956 (356 years since the existence of modern banking) The fundamental concept of banking is that you only lend money to people who dont need it. The people who need money arent good risks, and banks are not in business to lend money to people who are not good risks. Altruism Unselfish devotion to the interest and welfare of others. Disinterest regard as a principle of action. Self sacrificing behavior.

Why should I be BLH member? o Credit rating cleansing ritual - financial inclusion. o ownership of BLH - intercessors equity under IPO mandate.

Havillah, peoples Banca at last.

Management as collateral.

ASD factor, in essence is;

Management as collateral or shepherding.

A popular Sesotho adage.

Moketa ho tsosoa o itekang.

Havillah, peoples Banca at last.

Management as collateral.

Havillah, peoples Banca at last.