Executive Summary

A. Name of the enterprise The name of the institution is The Hexagon. The reason why the group chose the name is because hexagon is composed of six sides which represent the 6 partners.

B. Location of the business The office of The Hexagon will be situated at Lachica St. Poblacion, Urdaneta City, Pangasinan to be rented. This is because the location is easy to locate, accessible and convenient to potential customers since it is found along the road. C. Descriptive Definition of the project The main concern of the institution is to financially assist those who are in dire need of fund for them to satisfy their daily needs and wants. The proposed business would also like to cater and ensure accessibility and affordability of the financial services that our credit institution could offer and extend to a majority of poor and low-income households and their microenterprises by focusing on programs and strategies to integrate microfinance in their ordinary financial system. The Hexagon grant loans at a very low interest rate and a longer term of payment compared to existing credit institution.

D. Marketing Strategy

The Hexagon offers a low interest loans and a longer period of payment which customers are looking for. The Hexagon assures the client that the service that will be offered will have to be consistently in adherence to the vision and mission of the proposed business. Standardized manner of being dynamic, responsive and accessible to meet the financial needs of target clients will be maintained in accordance to their expectations. The enterprises target market will be the residents of Urdaneta City (22,908) and the nearby towns such as Rosales(10,064) , Villasis (10,543) , Binalonan (11,538) , Pozzurobio (11,288) and Manaoag (12,571) (this includes low-income government and private employees, tricycle drivers and other vehicle owners, vendors, small business owners, and parents who are temporarily incurring budget deficiencies specifically on the tuition payments of their children studying in colleges. 5 percent (5%) of the total household population was projected as the target market for one year (3,945).

The credit institutions computation of interest will be based on the principal that will be computed using an add-on interest. Add-on interest will provide flexibility, affordability and convenience on the part of the debtors to be able to acquire better financial possibilities on the appropriate utilization of their borrowed fund. Provision of cash rebate will also be given to debtors who are proven to be paying their amortization promptly.

Promotion Strategy Promotion is the best way in introducing the service to its target market. Posting tarpaulins to areas where most people usually pass by and distributing flyers are some of the promotional activities and programs that the business will have to seriously undertake in order to extensively introduce its offered service. Walk-in or house-to-house promotional strategy will also be conducted for the target clients to be properly oriented and for them to be widely informed on the positive attributes that could be very beneficial on their part as potential and valuable debtors of The Hexagons credit service that will be offered. Word of Mouth by loyal customers will also be one of the promotional strategies to attract future customers. Collaterals that could be accepted by The Hexagon may be the debtor-applicants real estate properties (title of ownership is needed), appliances (the serial number of the appliance will be taken), motorcycles (Original OR CR issued by the Land Transportation Office), jewelries, post-dated checks and others. The client will undergo credit investigation to ensure that if the borrower is unable to meet the loan obligation when it falls due, in accordance in agreement between the parties, the creditor (lender) may sell the collateral and collect the debt from the proceeds of the sale Requirements of Clients: ID picture 2x2 ID card (2) Residence Certificate (cedula) Brgy. Clearance Business Permit Tricycle permit Picture of collateral Mayors permit

D. Mode of Financing The business will be financed through monetary contribution of the partners and personal borrowings from parents, relatives and friends. Each partner will contribute P914, 052.39 making a total investment of P5, 484,314.35.

THE HEXAGON

9:30-11:00
AM

APRIL 06, 2013