Is AVL Capital part of AVLC Group a Scam?
Hello and Welcome..
Today am going to focus my review from an experience I had with a Lending company AVL Capital Ltd.
AVL Capital Ltd (www AVL Capital com) is part of AVLC Group (www AVLC Group com)
AVLC Group comprises of seven registered companies; AVL Capital, PSL Capital, Advance Ventures, Wasili Kenya a micro credit Community Based Organization Becky Travents Concepts, Becky Logistics and BKY Insurance Agency
I’ve known AVL Capital for the last couple of months.. Though I hadn’t transacted with them, I just happened to know them since they were strategically located in the same building floor with a company that I worked with on certain online projects..
I knew they provide Lending facilities like short term loans (1 to 3) months, bid bond financing, trade financing and more.. Obviously I could tell from a banner that they placed outside their premises.
About 3 weeks ago (mid Nov) I had an Item i needed to clear from the mombasa port.. and some funds i had planned to use for clearance were a bit stuck until mid december. So to bridge the gap and clear the item i wanted some quick credit for 21 to 30 days to utilize in clearing that item up, have it insured so that I don’t accumalate demmarage costs.
So the first idea that came to mind was contact a friend who had used their services for bid-bond financing.. and they told me the last time they used their facility, they were prompt.
On 22nd November I headed to AVL Capital offices in Upperhill. No. 24 Lowehill Duplex Apartment (right opposite Upperhill Secondary School). This was after liasing with them over the phone the previous day. I happened to speak with the front office person who was very helpful and upto speed in sending information on email on the requirements . I also expressed that my request was urgent and that if there was a senior person in the office that I could speak to, so it happened one of the Managing Director, a Mr. Andrew Kanyutu was present, he spoke to me and expressed support and that I can continue with the application process.
From that single encounter I felt this was the company to go for.. NO beuracracy, the MD is kind enough to talk on phone even when he’s busy.. So on the day I visited their offices, I happened not to meet the MD, he had left office, but Luckily I met one other Director a Mr. Kagesha.. who happened to have been briefed about my enquiry the day before..
Mr. Kagesha (Director AVL Capital) Is a very jovial and welcoming person. I had some paperwork with the likes of bank statement, my online activities e.t.c. He was impressed by what I was doing and my unique ways of making money online as an Internet Marketer and Financial Trader.
At this stage two directors giving a greenlight?? So I was betting my chances at 80% success rate to qualifying for credit facility at AVL Capital. Having filled the application, personal information, passport photo and other requirements I was told to meet the MD the following day for as further review.
At this point, the system is through in screening and this gives more confidence, as I pass every test it gave me more confidence that I qualify for the credit facility and indeed am the target client they would want to retain.
It’s Thursday 24th Nov. 2011 I’ve submitted my application which is reviewed within 24 hours. Before the day ends I got a call and my application had passed through.
When you qualify for a credit facility, they have a loan Processing FEE of 3% or 4% if the Item you are clearing has to be insured. So I fell for 4%. I had to pay Kes. 12,800 Aprx $ 140.00.
So I paid and I was told that the funds will be available in 4 working days, but given the urgency they were will to process the same in 24 working hours i.e. by Friday 25th Nov. 2011. I was all smiles and it felt like the birds were singing my favorite song. 
Make sure you are sitting down as you read this..
On friday 25th – Am calling to see if the check is ready.. the team there.. from Admin & Operations to the Managing Director are not picking calls.. So I guess they are busy working on my check.. or just attending to my clients.. Finally the Op & Admin person called and said there was a delay and I should expect the check on 29th Tuesday. A bit upset, but I understand.. afterall its their shipping time without hussle (4 working days).
Come 29th Tuesday – No one pick my calls.. until late.. so I smell something fishy coming my way.. and I start getting pretty upset.. the Item at the port will start accumalating demmarage costs.. I’ve stopped looking for a credit facility.. As I rest assured that there is a RELIABLE company i.e. AVL Capital sorting me out..
Dec. 2, Friday the following week i.e. 7 days late than the promised date.. no feedback yet, no one picking up my calls or responding to emails. Am pretty busy.. don’t have time to physically pay them a visit.. getting desparate, my item could be accumalating demmarages.. So I wrote this email to them..
Joyce,
This facility is taking longer than i can bear..
Kindly let me know how I can cancel the request and a reimbursement of the application deposit of KES. 12, 800
My reason for cancellation are as follows:
- There is no communication on your end (no senoir person picks up my call)
- Lateness in delivering – your turnaround for an already approved request is 4 working days.. which has since passed and its 3 working days late.
- I need to clear the car with speed and will have to look for other quicker methods from Lenders who do EXACTLY what they say they will do.
Am restraining myself to remain calm, but the truth of the matter is Am NOT Amused at all and in fact very dissappointed with how things are going.
Regards,
As usual no response by email or phone.. So I followed up by call and said thay had gotten my request and would advise.
1o days Later.Monday Dec 5 am is an assurance that this company won’t honor what they said they would and had to look for alternate sourcing.. Eventually, it meant I had to cancel my application.. As usual numerous calls no answer, no commitment and I wrote the following email to operations manager and cc’ed to the MD
Good day,
I wish to withdraw my application for loan in settlement of a car duty at Mombasa port.
Following non-commitment from AVL team to deliver the loan facility in 4 working days as agreed,
I therefore take the position that AVL is not able or is unwilling to provide the said facility henceforth.In this respect, AVL should make available the following for pickup:
- Application fee – Kes. 12,800
- Postdated check in favor of AVL by XXXX (Edited- the company that had guaranteed the facility)
- my personal copy documents filed by AVL.
Going forward, am not interested in securing a loan facility with AVL as I have suffered severe damages directly and indirectly as a result of poor response in addresssing customers requirements.
NB: Kindly prepare the above for easy pick-up by 1200h, Monday, December 05, 2011
Kind Regards,
Dec. 8 Thursday.. I call them to ask whether the cancellation was honored and if my documents and application were ready.. So I was told by the Operations and Admin person at AVL Capital that the documents i.e. bank statements and pasport photo are ready for pick up but the application fee is non-refundable!!!
Tell me what???
Oh.. what a profitable business model!!
Step 1. Apply for short loan..
Step 2. We vet you and analyze your bank statements, credit worth e.t.c.
Step 3. Congratulations!! you’ve qualified for a loan proceed and apply..
Step 4. Application received. NOW pay 4% of the amount you want e.g. 500K ($5,000) pay 20k ($200)
Step 5. Take client in circles.. till their emergency is no longer important.. make them desparate to look for other means.
Step 6. Frustrate them even further until they give up
Step 7. Client Gives up and they cancel..
Step 8. Hurray.. It’s Party time (Application fee- non-refundable) – Client go to hell (No LOAN, NO refund) afterall we have some fineprint covering our ASS!
Step 9. Leverage. Do that to 40 clients in a month. 40 * 20k = 800k Approx ($8,000)
Step 10. We have a lean staff. pay rent and divide the rest among ourselves!!!
Review: There is easy money being made in this town.. Especially, with the banks raising their lending interest rates.. the public is forced to look for alternative sourcing of funds.. thats where you meet the Private Lenders who hide under the umbrella of Private Lenders Association in Kenya{PLAK}. Am nit sure if such an organization exists, but even if it did.. it would cover the interest of the lending companies not the borrowers.
From my Experience: AVL Capital in Nairobi Kenya is a scam! Stealing from the public by taking Selling what they can deliver., in this regard.. paying for application % of an amount.. that is not realized is like paying for a product that doesn’t get shipped.. This is stealing in the day light and am sure lots of people will get SCAMMED by this Rogue company unless the word gets out there pretty quick..
If I got to exeperience this with AVL Capital, am sure there are a few others who gone through the same but they don’t have access to a platform like this one to voice their word out BUT I have and am determined to ensure this company doesn’t continue to rob people while covering themselves with Terms of Service.
The directors are pretty young guys in their 30′s and they have a whole-hell of life ahead of them,, they can close the company, start a new one, probable learn from their mistakes and start afresh. Or even worse.. reharsh the whole lending-stealing methodology with even more companies.
Of shock is how some reputable corporations like ChaseBank and CIC Insurance group have partnered with these guys. With CIC they have contracted them as their agency under the name BKY Insurance Agency and I heard Chasebank provides them with Liquidity.
From an entrepreneur perspective: Now even come to think of it.. If AVL Capital has to rely on a bank to provide liquidity for them.. it could be a reason enough that the bank was taking longer to approve the funds, but if the company has had a history with the bank.. It would even be easier to get liquidity approved.. but if they don’t pay their debts.. then the delay from the bank is also escalated to the customer like me..
Now what makes it EVIL.. is if AVL Capital is dwindling financially and bank is not approving their liquidity.. based on whatever factors.. now they have to punish the little guy by stealing application fee, without necessary shipping on their promise..
AVL Capital is a start up.. and I also believe the Group is a just a marketing gimmick.. you know what they call.. Fake it till you make it.. Unfortunately, with the way they are treating clients, i don’t see them recovering anytime soon, they probably remain a start up for the 7 years or so.. In fact I wont be surprised if the closed down soon.. They might continue.. thriving on old clients who had their ran when they started… but thats all they’ll have.. if this is how they will treat new clients..
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