CHAPTER I

PROBLEMS AND ITS SETTING

THEOROTICAL BACKGROUND

“The lending industry thrives better of financial

crunch”. Where crisis arrives, people thrive to cope and

stretch out what little they have to cater to their

different needs and uses. Inevitably, times will come when

people tend to seek out other means to cater to these needs

in a faster way. This is where the lending industry comes

in to the rescue and save the day. Now this is not to say

that lending companies are only for desperate times. It is

cruel to assume, although highly common, that lenders,

leech on the difficulties of other people. But when we try

to put a better perspective on it, lenders actually are

there to offer assistance in times when it is needed the

most.

Borrower range from small business entrepreneurs who need

the start-up capital for their business to individuals who

are in need of money to finance their desire to work

abroad. These are people of different walks life who have

one thing in common, and that is the end for immediate

money. Furthermore, this need must be coupled with the will

to pay back the principal and the interest if their

liability. It is a risk worth taking and as for the

lenders; this is a good venture to go into. With the proper

measures taken when assessing the capability of the

borrower, certain control procedures to assure that

receivables are being adequately turned over, and

substantive deliberation of other factors that will affect

the business, this would be a profitable one. Both parties

gain something; it is a win-win situations.

REVIEW OF RELATED STUDIES

A lending institution is any type of financial

organization or institution that provides loans to

borrowers. There are many different types of lenders in the

marketplace today, ranging from banks and credit unions

to mortgage and payday loan companies. The range of loan

types offered by any one financial institution will vary,

depending on the structure of the organization. Typically,

all lenders will charge some rate of interest for the

amount of funds borrowed, and require the borrower to

commit to a contract that spells out the terms for

repayment.

Source: (http://www.wisegeek.com/what-is-a-lending-

institution.htm)
 Lending Company shall refer to a corporation engaged in

granting loans from its own capital funds or from funds

sourced from not more than nineteen (19) persons. It shall

not be deemed to include banking institutions, investment

houses, savings and loan associations, financing companies,

pawnshops, insurance companies, cooperatives and other

credit institutions already regulated by law. The term

shall be synonymous with lending investors.

Source:(http://www.lawphil.net/statutes/repacts/ra2007/ra_9

474_2007.html)

REVIEW OF RELATED LITERATURE

Lending policies should be clearly defined and set forth

in such a manner as to provide effective supervision by the

directors and senior officers. The board of directors of

every bank has the legal responsibility to formulate

lending policies and to supervise their implementation.

Therefore examiners should encourage establishment and

maintenance of written, up-to-date lending policies which

have been approved by the board of directors. A lending

policy should not be a static document, but must be

reviewed periodically and revised in light of changing

circumstances surrounding the borrowing needs of the bank’s

customers as well as changes that may occur within the bank

itself.

Loans to business enterprises for commercial or

industrial purposes, whether proprietorship, partnerships

or corporations, are commonly described as commercial

loans. In asset distribution, commercial or business loans

frequently comprise one of the most important assets of a

bank. They may be secured or unsecured and have short or

long –term maturities. Such loans include working capital

advances, term loans and loans to individual for business

purposes.

(https://www.fdic.gov/regulations/safety/manual/section3-

2.pdf)

THE PROBLEM

Statement of the problem

This is a proposed study on building up a Lending

Institution in Sibulan, Negros Oriental. Specifically, this

study seeks to answer the following specific questions:

 1. Is the proposed “Lending Institution” in Sibulan,

Negros Oriental feasible from the Management point of

view?

2. Is the proposed “Lending Institution” in Sibulan,

Negros Oriental feasible from the Marketing point of

view?

3. Is the proposed “Lending Institution” in Sibulan,

Negros Oriental feasible from the Technical point of

view?

4. Is the proposed “Lending Institution” in Sibulan,

Negros Oriental feasible from the Financial point of

view?

5. Is the proposed “Lending Institution” in Sibulan,

Negros Oriental feasible from the Socio-economic point

of view?

Significance of the Problem

This study will be a great challenge to the researchers,

and will definitely test their patience and will. It is a

great avenue to contribute to the society, and to test the

effectiveness of the study especially for those who are

interested in starting a lending business in Sibulan,

Negros Oriental. This study will hopefully eradicate the

five- six “Bombay” lending which offers unreasonable rates,

and therefore submerging the borrowers deeper into the

liability instead of helping them and serving them with the

best interest in mind. Furthermore, this study will serve

as a big stepping stone for the researchers in facing and

surpassing the different difficulties experience in the

business world, especially in the lending business.

Scope and Limitation

This lending institution will be built in commercial

space located at Sibulan, Negros Oriental. The feasibility

covers the five aspects namely: Management aspect – to know

who are the people has the capacity and the skill to manage

the business, Marketing aspect- to know if the people is

interested to borrow in this lending institution, Technical

Aspect- to know what are the equipment to be used

throughout the operation, Financial Aspect – to know how

much will be the income for the next years operation,

Socio- economic aspect – to know if this is beneficial to

the people in the area.

Assumption of the study

MAJOR ASSUMPTIONS

METHODOLOGY

This chapter includes the Research Design, Research

Design, Research Respondent, Research Instrument, and

Statistical of Data and Research Procedure.

Research Design
 The researchers would like to flow ___ questionnaires

and conduct an interview to the people of Sibulan and the

surroundings are like Dumaguete, whether or not they would

like to have a lending institution in the area. The

questionnaires would target the five aspects of the

feasibility study. An interview would be done as well to

the existing lending institution in Sibulan and Dumaguete.

Research Environment

Sibulan is a town of rising economy. Fishing and farming

are the people mains source of income. Boats depart from

and the town of Liloan, a province in Cebu everyday. Its

central business district area is 5 kilometers away from

Dumaguete, the capital of the Province of Negros Oriental.

For this reason, there are several establishments built in

Sibulan. In addition to this, there are several resorts

&tourist spots people visit to. It is a place where people

can enjoy the provincial life while still having the

comforts of the city nearby.

Research Respondents

The respondents in this study are the people of Sibulan

and even Dumaguete especially those people who would like

to have a lending institution in Sibulan.

Research Instruments
 The researchers would like to know whether or not people

living in Sibulan as well as the places around it would

like to have a lending institution in the area. Finding

questionnaires to the respondents and conducting an

interview would be done by the researchers.

Statistical Treatment of Data

The data gathered shall be analyzed by the researchers

to prove whether the lending institution in Sibulan would

be feasible in the Management, Marketing, Technical,

Financial and Socio- Economic aspects.

Research Procedures

The researchers shall gather data via questionnaires and

interview on people of Sibulan and nearby areas surrounding

the place.

DEFINITION OF TERMS

Bank – a financial institution that accepts deposits from

the public and creates credit.

Banking institution – mean any bank, trust company, bank

and trust company ,stock savings bank, or mutual savings

bank, which is now or may hereafter be organized under the

laws of this state.

Borrowers – a legal term for a person or entity that

obtains funds from a business or individual for a specified

period of time upon condition of promising to repay the

loan.

Capital – wealth in the form of money or other assets owned

by person or organization or available or contributed for a

particular purpose such as starting a company or investing.

Contract - a written or spoken agreement, especially once

concerning employment, sales, or tenancy that is intended

to be enforced by law.

Cooperative – an organization that is owned jointly by its

members, who share profits and benefits.

Corporation – a company or group of people authorized to

act as a single entity and recognized as such in law.

Credit Union –is a member – owned financial cooperative,

democratically controlled by its members, and operated for

the purpose of promoting thrift, providing credit at

competitive rates, and providing other financial services

to its members.

Finance company - a company concerned primarily with

providing money.

Insurance – is a contract represented by a policy, in which

an individual or entity receives financial protection or

reimbursement against losses from an insurance company.

Interest – is a payment from a borrower or deposit- taking

financial institution to a lender or depositor of an amount

above repayment of the principal sum. It is distinct from a

fee which the borrower may pay the lender or some third

party.

Investment house – works primarily for corporations and

government. These banks help raise money for their clients

through debts and stock offerings.

Lender – is an individual , a public group, a private group

or a financial institution that makes funds available to

another with the expectation that the funds will be repaid,

in addition to any interest and/ or fees, either in

increments (as in a monthly mortgage payment) or as a lump

sum.

Lending Institution – a financial institution that makes

loans.

Loan – a thing that is borrowed, especially a sum of money

that is expected to be paid back with interest.

Mortgage – is a debt instrument, secured by the collateral

of specified real estate property that the borrower is

obliged to pay back with a predetermined set of payments.

Organization – an organize body of people with a particular

purpose, especially a business, society association, etc.

Pawnshop – a pawnbroker’s shop, especially one where

unredeemed items are sold to the public.

Payday loan – is a type of short- term borrowing where an

individual borrows a small amount at a very high rate of

interest. The borrower typically writes a post –dated

personal check in the amount they wish to borrow plus fee

in exchange for cash.

Repayment –the action of paying back of a loan.

ORGANIZATION OF THE STUDY

CHAPTER I – This chapter is all about problems and its

settings which includes the historical background, review

of related studies, review of related literature. Next is

the Problem which includes the statement of the problem,

significance of the study and scope and limitations.

Another is the Methodology which includes the research

design, research respondents, research instrument, and

statistical treatment of data, research environment and

research procedures. Lastly, this chapter includes the

definition of terms and major assumptions.

CHAPTER II- This chapter is all about the presentation,

analysis and interpretation of data which includes the

management aspect, marketing aspect, technical aspect,

financial aspect and socio- economic aspect.

CHAPTER III- This chapter is all about the summary of

findings, conclusion and recommendation.

CHAPTER II

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter is all about the presentation, analysis

and interpretation of data which includes the management

aspect, marketing aspect, technical aspect, financial

aspect and socio-economic aspect.

MANAGEMENT ASPECT

One of the aspects of feasibility study is the

management aspect which implies a clear and precise

identification of duties and responsibilities, flow of

authority and manpower level requirement. This chapter

discusses the following: capitalization, management during

the pre-operating period, business ownership, and proposed

name of the business, organizational set-up, manpower

requirements, salaries, compensation and benefits of the

employees, leave / absences /unauthorized absences of the

employees, operating hours and the policies and

regulations. This lending institution will be in a form

of corporation. This corporation will be simple and will be

run by 6 personnel.

Capitalization

This project will have a capital of P8, 000,000 and the

incorporators who are willing to finance this study will

divide the said amount. Each incorporator will contribute

P1,600,000.00 to the capital .

Management during the pre-operating period

Once this project feasibility study will be proved

feasible, the requirements to be accomplished in order for

the business to operate are the following:

 For the Securities and Exchange Commission

Certificate of Incorporation

- Articles of Incorporation

- By Laws

- Treasurer’s Affidavit

 Bureau of Internal Revenue

- BIR Form 1903( Application for Registration for

Partnership /Corporation)

 Local Government Units where your business is

located:

- Barangay
 o Barangay Clearance

- Mayor’s Office

o Application Form for Business Permit

o Health Certificate

o Sanitary Certificate

o Engineering Clearance

o Fire Safety Clearance

o Zoning Clearance

o Official Receipts

 For the employees they need to be registered to the

following:

- Social Security System

- Philippine Health Insurance Corporation

- Home Development and Mutual Fund

Business Ownership

Wilson B. Ladion – Filipino, married of legal age. A

resident of San Juan, Siquijor. He is willing to finance

the proposed study in the amount of P1,000,000.00.

Redeen Formento - Filipino, married of legal age. A

resident of Sibulan, Negros Oriental. He is willing to

finance the proposed study in the amount of P1,000,000.00.

 Jose Ariel R. Villacampa – Filipino, married of legal

age. A resident of Bais City, Negros Oriental. He is

willing to finance the proposed study in the amount of P

1,000,000.00.

Rock T. Montejo – Filipino, married of legal age. A

resident of Sibulan, Negros Oriental. He is willing to

finance the proposed study in the amount of P1,000,000.00.

Juan B. Bacongallo – Filipino, married of legal age. A

resident of Sibulan, Negros Oriental. He is willing to

finance the proposed study in the amount of P1,000,000.00.

Proposed Name of the Business

The researchers decided that our business will be named “

EZ Cash Lending Incorporated.

Organizational Set-up

Incorporators

General Manager
 Field Collector/ Credit Accountant
Investigator

Posting Clerk Cashier

Manpower Requirements

This proposed project will have 6 personnel which

composed of: 1 General Manager, 1 Posting Clerk, 1 Cashier,

2 Field Collector/ Credit investigator, 1 Accountant.

Qualification, Standard and Functions of Personnel

Position Job Description Job Specification

General Manager - shall be - male or

responsible female

for planning, - 23 to 35

directing , years of age

and - Graduate of

overseeing a related

the business
 operations courses

- shall check - have a

and monitor pleasing

the financial personality

status of the - have a 2

institution years of

- shall experience in

approved the managing an

applicants lending

for loans institution

- Shall meet or any

the customers business

need and entity

recommend the - have an

right loan excellent

offers to communication

help meet the skills

customer - must have a

satisfaction. leadership

skills

Accountant -shall calculate - Male or

and check to make female

sure payments, - must at least

amounts and 25 years old

records are - must be a

correct graduate of

- shall manage the BS

petty cash Accountancy

transactions preferably

- shall prepare CPA

the payroll - must have an

-shall be background

responsible for knowledge

keeping the about

records, and accounting

receipts provided - must be

by the cashier. responsible

-shall make a and honest to

monthly financial his/ her job

report to be - must be a

present in the computer

manager. literate

- must have a

good
 communication

skills

- must have an

experience

working in

accounting

field.

Cashier -shall take charge - male or

all the money female at

received by the least 25

business. years old

- shall - must be

responsible for honest and

the cash receipts responsible

and disbursements - must be

graduate of

any business

courses.

- must have an

experience in

this field.

Collector/ Credit -shall - male female

Investigator investigate the at least 25

background of the years old

borrower - must have a

- shall approved good

the loan communication

application prior skills

to the manager’s - must have a

approval good

personality

Posting Clerk -shall compile the - Male or

receipts, compute female at

the fees and least 25

charges. years old

-shall post the - Must have a

transactions in background of

the ledgers. accounting

-shall prepare an - Must be

itemized statement responsible

to his or her
of the bills . work.

- Must be a

computer

literate.
 - Must be a

graduate of

any business

courses.

Hiring Process

The applicant must bring the following:

1. Resume

2. Application Letter

3. Police clearance

4. Any supporting documents, if any, with regards to

the applied position

Salaries, Compensation and Benefit

The salaries of the employees are the following:

 General Manager – P370 per day

 Accountant – P360 per day

 Posting Clerk and Cashier – 350 per day

 Collector or Credit Investigator – 324 per day

Employees are required to duty 6 days a week. Each

employee will have a rest day which is Sunday. Employees

must work at least 8 hours and beyond that the employee

will be compensated with overtime pay.

Employees are also provided with benefits such as SSS,

Phil Health, Pag-IBIG. Holiday’s works will be compensated

with the rate provided by the labor code. Salaries and

wages are paid semi- monthly and will be given on the 5th

and 20th of the month.

Leave/Absences/Unauthorized Absence

All employees will have a service incentive live which

includes the sick and vacation leave. This service

incentive leave will be convertible to cash unless this

will not be used. For female employees they will have

maternity leave and for married male employees they will

have a paternity leave. The employee will fill up an

absence form one week before the scheduled leave of

absences which will be verified by the manager.

Operating Hours

The lending institution will have its business hours from

8:00 o’clock in the morning until 12:00 noon and will

resume on 1:30 in the afternoon until 5:30 in the

afternoon. All personnel have a lunch break and each of

them will be given a time card to be punch in the bandy

clock in order to know the time the employee started,

finish and had overtime in their work.

Policies and Regulations

Sanction/ Disciplinary Actions

This discusses the classification of sanctions to be

given for a violation of employment policies.

First Warning: Oral Reprimand

Second Warning: Written Reprimand

Third Warning: Suspension of 3 days

Last Warning: Dismissal

Lending Policy

1. The lending institution will have its business hours

from 8:00 A.M until 12:00 noon and resumes 1:30 until

6:00 P.M. The employees have their lunch break.

2. The field collector must conduct a credit

investigation to the borrowers.

3. The collection of money from the field collectors will

be remitted to the cashier at the end of the day.

4. The posting clerk will record the transactions

5. The money that is being collected will be deposited in

the bank in the succeeding days.

6. If the employees will steal the money from the

collections, that employee will subject to

termination.

7. Employees must exercise professional decorum.

Cause of Termination

1. The employee does unnecessary things in his or her

work. (e.g. stealing the money, misappropriation of

funds for personal use.)

2. Inability to do his or her work and the

responsibilities they have in their said position.

3. Lateness, absenteeism and persistent absence without

any valid reason.

4. Intolerable treatment to the customers.

Project Time Table

MARKETING ASPECT

The marketing aspect comprises of the examination of

the target market conditions of the proposed business. The

data of which are used are gathered through interviews,

questionnaires and other data gathering procedures. This

aspect shows the demand from past, present and future, and

supply conditions of the services to be offered and the

methods of distribution to the customers. The researchers

established the marketing strategy that is suitable to the

business. Varying advertising and promotional methods will

be used to market to the public which would entice

customers.

General Description of the Market

Lending Institutions are commonly known as credit

providers. These institutions give money to borrowers with

the expectation that it would be repaid after a certain

time and with interest. There are several organizations

that offer loans such as banks, pawnshops, credit unions

and other financial institutions.

The different kinds of financial institutions are

scattered all throughout the City of Dumaguete, of which

people of the city as well as from neighboring

municipalities and cities are availing. These institutions

serve the people in several ways like for personal use, for

a start-up capital for their businesses, medical use and

others. The main purpose of which these financial

institutions, including lending institutions are to improve

the lifestyle of the people in a way that would help the

economy in return.

Target Market

The immediate target market of the proposed business

is the entire population of the Municipality of Sibulan.

However, it shall not be limited to it. Neighboring cities

and municipalities may avail of the services offered by the

proposed lending institution. The Municipality of Sibulan

has a population of 59,455 based of the 2015 CENSUS.

Demand

Demand is the consumer’s desire or need to buy or

avail certain good or services.

Billions of transactions occur every day, and the

ultimate medium is money. Every transaction whether to buy

food ingredients for a meal that is to be served to a

family or to pay the tuition fee of a son or daughter

requires money, if not to say cash. In today’s fast- paced

generation, it is with utmost need that the people have

cash for their undertakings and daily transactions.

Money can be earned through salary compensation,

business earnings and other means. Oftentimes, money is

spent carelessly and not well- budgeted to the point of

shortfall. Other times, money is needed immediately but is

not yet available. There are also cases, mostly on low-

income families, when the amount of money earned is so

deficient for their different undertakings (e.g. to pay

tuition fees at school)

Thus, the need of money arises every single day. It

is a constant battle to keep your cash balance sufficient

and not just to think short-term when it comes to spending.

It is definitely to one’s advantage having a stable

spending power that can equate, if not exceed, one’s

expenses. But what about those who aren’t?

This is where “borrowing” comes in.

People need to have a Plan B when it comes to their

expenses. When all else fails, it is probable that people

will resort to borrowing money from whatever source they

can think of: whether from their family or friends, or from

lending institutions.

The Municipality of Sibulan, being one of them many

municipalities in the province of Negros Oriental, consists

mostly of middle- income earners.

Projected Population

Given:

Census: Year 2015: 59,455

Year 2010: 51,519

Gap: (2015-2010) = 5 years

Increase in Population per year = 3%

Table 1

Projected Population

Year Previous Year Rate of Total

Population Increase Population

2011 51,519 0.03 53,065

 2012 53,065 0.03 54,657

2013 54,657 0.03 56,296

2014 56,296 0.03 57,985

2015 57,985 0.03 59,725

2016 59,725 0.03 61,516

2017 61,516 0.03 63,362

2018 63,362 0.03 65,263

2019 65,263 0.03 67,221

2020 67,221 0.03 69,237

2021 69,237 0.03 71,314

2022 71,314 0.03 73,454

2023 73,454 0.03 75,658

Presentation of Survey Questionnaire Results

Question no. 1: What is your Marital Status?

Marital Status Percentage

Married

Single

Question no. 2: Number of children in the family

Number of Children Percentage

1-2 Children
 3-4 Children

5 and above

Question no.3: What are the sources of your income?

Source of Income Percentage

Salary or Compensation

Business

Others

Question no.4: How much is your monthly income?

Income Percentage

Below 10,000

10,000- 15,000

15,000- 20,000

20,0000-25,000

25,000 and above

Question no.5: Are you willing to borrow money?

If yes, from whom?

Sources Percentage

Family or Friends

Banks

Cooperative
 Bombay

Lending Company

If no, you are free not to proceed. We thank you for your

participation.

Question no.6 What is your purpose for borrowing money?

Purpose Percentage

Personal Use

Business Purpose

Medical or Health Purpose

Educational Purpose

Others

Supply

Supply is a fundamental economic concept

that describes the total amount of a specific good or

service that is available to consumers. This related

closely to the demand for a good or service at a specific

price; all else being equal, the supply provided by

producers will rise if the price rises because all firms

look to maximize profit.

Sibulan is a nearby municipality to Dumaguete City: The

former being a non-modernized and small area, and the

latter the center of trade in the province of Negros

Oriental. The researchers plan to establish a lending

company in Sibulan to help boost the economy, among other

reasons. Furthermore, Sibulan consists mostly of middle-

income earners who are in need of the services provided by

our proposed business.

The availability of supply is based on assessing the

existing probable competitor’s share of the researchers

target market.

At present, there are three major competitors of the

business, namely Dumaguete Cathedral Credit Cooperative-

Sibulan Branch, RUSCO Lending Corp. and Barili Rural Bank.

These establishments cater to the borrowing needs of the

people of Sibulan.

Competitors Analysis

The following are the considered competitors of the

business:

 Dumaguete Cathedral Credit Cooperative-Sibulan Branch

– located at Poblacion, Sibulan, Negrs Oriental, and

offers share capital/equity based loans to their

members
  RUSCO Lending Corp. – located at Airport Area,

Sibulan, Negros Oriental and enables customers to loan

with very small amount of interest.

 Barili Rural Bank- located at Poblacion, Sibulan,

Negros Oriental and offers low-interest amounts to

customers.

Demand Supply Gap Analysis

This analysis helps in determining the current market

offering of EZ Cash Lending Inc. The gap is being

determined by subtracting the projected supply from the

projected demand. It also shows the number of people whom

JOWRFATESS Lending Inc. needs to supply or rendered

service.

Assumption:

1. Assume that 60% of the population is employed and

will apply for a loan to a financial institution in

a year.

2. There is a demand of 30% of the population; only 70%

of it will be catered by other competitors. With

this the EZ Cash Lending Inc. market share is 30%.

3. The increase of demand is proportionate to the

increase of the population.

Demand = the number services demanded per year

 Supply = the availability of the competitors to

supply

Formula: Demand and Supply Gap = Demand – Supply

Table 2

Demand- Supply Gap

Year Demand Supply Demand-Supply

Gap

2019 11,747 8,223 3,524

2020 12,100 8,470 3,630

2021 12,463 8,724 3,739

2022 12,837 8,986 3,851

2023 13,223 9,255 3,968

General Marketing Practices

Generally, in constructing any institution, it starts on

the certain permits and license to operate. Next would be

preparing the office equipment and supplies and hiring the

employees. Other technical aspects shall follow.

The terms and conditions to be followed in the lending

institutions are the following;

1. The interest of the loan shall be at the rate of two

percent (2%) per month.

2. Payments are due on or before 30th of the month

starting on.
 3. A surcharge of 1% daily shall be charged to those

who fail to pay on the deadline or the delinquent

accounts.

4. Notice of payment will be sent to the borrowers with

delinquent accounts starting from the day after the

payment is due and the days following.

The Project Marketing Program

There are factors that affect marketing strategies and

this includes the competitors, population growth, and

marketing tools such as advertisements and income charges.

Income charges determine the range of how much the

borrower can acquire. The institution can offer any rate in

order to serve the community, but nevertheless more

advantageous if offered at lower rates since it would

attract more borrowers and in turn serve more people and

the economy as a whole. Population growth determines the

increase or decrease of the number of applicants or

borrowers in a certain period.

Advertising affects the market, making the market

aware of what the lending institution is offering and can

increase the number of applicants. Lastly, competitors are

another factor to be considered since they are there to

give services that are in the same industry or line of

business. Gaining competitive advantage is a must because

this would be the determining factor for the customers to

avail of the services offered of the business.

Marketing Mix

Product/Services

EZ Cash Lending Inc. aims to cater to customers who

need small- amount loans. The amounts that can be borrowed

depend on the salary or the lender. It is requires that the

lender fill-up a promissory note and other documents upon

borrowing.

Loans can start from Php 1,000 to Php 5000, and can

reach up to Php 30,000. The interest charge is a 1.5% rate

per month. Given the demand for borrowing, it is the aim of

the researchers to extend service to the customers in a

less- hassle way. Access of money is easier, and there are

fewer documents to be submitted by the borrower, making

these transactions much convenient in the fast – paced

world of today.

Place

The premises of EZZ Cash Lending Inc. will be located

at the commercial area of Khan Commercial Arcade in

Barangay Tubtubon, National Highway, Sibulan, Negros

Oriental. The researchers think it fit to rent a commercial

space. Since it is a commercial area, there are other

businesses within the vicinity making it easier for the

customers to come not only for the purpose. Customers of

the other commercial spaces within the area can also be

potential customers of EZ Cash Lending Inc. Furthermore,

the commercial area is along the National Highway making it

easier for the customers to come and avail of the services

offered. The place is also situated near and in between the

City of Dumaguete and Poblacion, Sibualan.

Promotion

Business use various marketing tools to communicate

information, stimulate customers interest and motivate

action. EZ Cash Lending Inc. plans to promote their

services through these different marketing tools: (1)

Traditional Media- there will be tarpaulins posted in the

strategic places around Sibulan, Negros Oriental.(2) Social

Media- It would be easier to reach out and promote to

potential customers about the business through social media

sites which include, but not limited to Facebook, Twitter

and Instagram. (3) Word of Mouth – families, relatives and

friends of the prospects owners could also serve at

promoters and help disseminate information about new

business to others.

Projected Sales
Systems and Forms Design

TECHNICAL ASPECT

The technical aspect deals with the different resources

relevant for the proposed business operations, gathering

said resources, and allocation to their proper designation

and functions. This part will show the analysis of the

technical considerations of the planned project. In

addition, the operations and other procedures of the

business will be taken into account whether or not they are

in conformance to the existing and accepted principle,

standards, practices, rules and regulations. The cost of

which the business will incur shall be the best estimate

and will be at par with the expenses of other existing

business and industry.

In the analysis of the technical feasibility of the

project, the following technical requirements must be

examines if applicable in the operation of the project:

 Product or Services

 Materials Handling

 Project Layout
  Project Site

 Floor Plan

 Evacuation Plan

 Building and Facilities

 Machineries and Equipment

 Utilities

 Waste and Water Disposal Method

 Total Production Cost

 System and Form Design

Objectives:

a. To identify the products and or services that the

proposed business will have and their processes and

narrative.

b. To describe the geographical location of the proposed

project.

c. To illustrate the layout of the office of the

business.

d. To determine the supplies, machineries and equipment

to be used in the operation of business.

e. To define the terms of payment.

f. To outlines the requirements and regulations of the

business.
 g. To establish the method of proper waste disposal of

the business and the maintenance.

Product/Services

Borrowing Process

The applicant’s first step, aside from making sure he is

qualified, is to gather all the requirements needed in

availing the loan. After this, the lender must submit the

aforesaid requirements to the accountant who verifies them.

When verified, it is forwarded to the manager who approves

the loan. The cashier then issues the check to the

borrower. The data gathered from the lender is kept in

storage and inputted by the posting clerk in his computer.

The collector must also be notified of the information

given since he will be the one in charge of the collection.

Requirement for Loan Applicants

Initially, the applicant must submit the following in

order to avail of the loan:

a. Latest payroll slip

b. Certificate of employment

c. Photocopy of the company’s ID

d. Fully- accomplished loan form

e. Two recent 2x2 ID pictures

If the applicant is self- employed, he must submit the

following:

a. Latest Income Tax Return

b. Fully- accomplished loan form

c. Two recent 2x2 ID drill

Application Schedule

All persons who are gainfully employed or self- employed

with the family income of at least Php5, 000 and who can

present all of the needed requirements mentioned above can

avail of the loan. After five (5) years of operations

families with a monthly income of P5, 000 below can avail

of the character loan. This is only limited to 20 families

a year who have passed the inspection of the credit or

character investigator.

Terms of Payment

The amount of loan and its corresponding terms of payment

5000 and below – 14 months payable

5001 – 10000 - 16 months payable

10001 – 15000 - 18 months payable

15001 – 20000 - 20 months payable

20001 – 25000 - 22 months payable

25001 – 30000 - 24 months payable

Project Site

The proposed lending institution will be located at Stall

52, Building 2, Khan Commercial Arcade, situated in

Barangay Tubtubon, National Highway, Sibulan, Negros

Oriental; it is just along the way to Poblacion, Sibulan.

The proponent owners choose this location because it is

accessible and it is about a kilometer in Poblacion,

Sibulan and about 4 kilometer away in Dumaguete City.

Project Layout

Offices Supplies

The office supplies like receipt forms, ledgers, bond

papers, ball pen, folders and other office supplies will be

purchase and ordered in the local market in Dumaguete City.

Business Hours

The employees will render there services in the following

schedules:

Monday to Friday

8:00 A.M – 12:00 NN

1:30 P.M – 5:30 P.M

Saturday

8:00 A.M – 12:00 NN

Building and facilities

To have an efficient operation the proposed project will

use these following facilities:

Computer – all data will be entered, manipulated, viewed

and stored in the computer.

Printer - device that accepts text and graphic output form

a computer and transfers the information to paper, usually

to standard size, sheets of paper.

Filing Cabinet- used to store paper documents in file

folders.

Calculator- use to calculate the transactions manually.

Telephones- used to facilitate the messages, inquiries and

information for applicants and clients.

Air conditioner unit- to create a cooler atmosphere

CCTV- primarily used for surveillance cameras in our

business.

Generator- this machine serves as a producer of electrical

energy in case there will be blackouts.

Office Supplies – this are used in the office by

individuals who are engaged in written communication, and

recording or bookkeeping.

Floor Plan

Machinery and Equipment

Utilities

The main source of electricity is NORECO II. The office

is already equipped with electrical lines and there is a

need of installing a separate meter. The source of water is

the SIWAD (Sibulan Water District) which needs to install a

separate water meter. Telephone and internet will be

installed by the Globe Telecom.

Waste and Waste Disposal

This lending institution is an eco- friendly institution.

The waste disposal that we made is we separate the

biodegrable and non- biodegrable. Aside from that the

papers that we used these papers can be recycle except to

those papers that has confidential information and those

that will be kept in the respective files. The garbage

collector will mainly collect the garbage every day and do

the proper disposal of it.

Production Cost

OFFICE SUPPLIES

Name Quantity Unit Price Amount

Ball pen 10 5.00 50.00

Stapler 2 180.00 360.00

Staple wire 10 10.00 100.000

Scotch tape 10 10.00 100.000

Tape Dispenser 2 230.00 460.00

Bond paper 1 ream 191.00 191.00

Folder 100 5.25

Ruler 3 12.95 38.85

 Ink

Logbook 3 47.50

TOTAL

OFFICE EQUIPMENT

Name Quantity Unit Price Amount

Air conditioner 1 24, 999.50 24,999.50

Computer 2 32,900.00 65,800.00

Printer 2 2,700.00 5,400.00

Calculator 3 350.00 1,050.00

Generator 1 19,824.00 19,824.00

CCTV cameras 4 domes and 2 10,426.00 10,426.00

indoor –

outdoor cameras

Wall fans 2

Total 127,499.50

FURNITURE AND FIXTURES

Name Quantity Unit price Amount

Office Tables 4 1,744.00 6,976.00

Filing Cabinets 1 3,750.00 3,750.00

Computer Desk 2 1,999.00 3,998.00

Mono-block 10 359.75 3,597.50

 Chairs

Computer Chairs 4 709.04 2,836.16

Sofa 1 5,999 5,999.00

Total 27,156.66

CLEANING EQUIPMENT

Name Quantity Unit Price Total

Toilet brush 1 300.00 300.00

Toilet pump 1 125.00 125.00

Mop 1 629.00 629.00

Hand wash soap 2 20.00 20.00

Twig Broom 1 10.00 10.00

Dust Pan 1 50.00 50.00

Dust Broom 1 33.oo 33.00

Total 1,167.00

System and Forms Design

FINANCIAL ASPECT

TOTAL PROJECT COST

DEPRECIATION AND AMORTIZATION

INCOME STATEMENT

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CASH FLOWS

FINANCIAL STATEMENT ANALYSIS

BREAK-EVEN ANALYSIS

SOCIO ECONOMIC ASPET

CHAPTER III

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION

SUMMARY

Restatement of the Problem

CONCLUSION