Professional Documents
Culture Documents
In
Partial Fulfillment
Of the Requirements
In (Mgt. 3)
MICROFINANCE
Submitted to:
JOEL SARILLO
Submitted by:
ALVIN CRIS DECHAVES
ACD Savings and Credit Cooperative
LOCATION
Vision
competitive, viable and sustainable with capacity for fulfilling members’ economic and
social needs.
Mission
services and products while increasing the community’s savings, providing loans and
offering services to support our members and their communities in poverty alleviation
efforts.
Core Values
(interactive); safety and security (protect your funds and personal information).
Description
This business plan was established using a participatory process that involved
Initially, an internal scan helped to assess the adequacy and completeness of systems
and procedures; to identify the operational challenges facing ACD Savings and Credit
Cooperative the; to give recommendations; and to establish the ACD Savings and Credit
Cooperative financial position. The internal scan reviewed all operational areas including
To be able the project be implemented the project will ensure first the papers and basic
Regulation Act of 2007 an Act Governing the Establishment, Operation and Regulation
of Lending Companies. To name those documents and requirements, the project will
Commission (SEC), other documentary requirements shall secure from the Municipality
where the business will be located. The business will grant loan to the borrowers with a
reasonable interest rate of 2% per month. The company will also deduct an advance one
(1) month interest from the proceeds of loan as well as the other fees. The loan must be
payable within one (1) month up to six (6) months term base on the amount borrowed
and the agreement between the borrower and the company. Since the target market of
the project will be the employees of LGUs, other offices and Schools and also the
between the lending company and their respective employers to deduct a corresponding
amount from their monthly salary and remit the same to the lending company. This will
ensure the smooth collection of loans. On the other hand, on the part of the pensioners
they will surrender their Passbooks, or ATMs to the company as collateral since this is
the only way to protect and as assurance to pay their lent amount. And for some
instances, for the convenient collection of matured loans, the company will propose to the
bank where the monthly pensions of pensioners are remitted in the area to debit the
account of the pensioners with matured loan once their pensions credited to their
respective accounts and credit the same to the account of the company. Since, the
company will open a bank account preferably checking account for easy releasing of
loans. As one of the requirements to avail a loan from the company, borrower must have
a co-maker and it must be his/her officemate. To ensure that whenever the borrower fails
to settle his/her obligation, the co-maker will be liable for that obligation. The company
will provide a promissory note stating the amount of loan, the interest rate, the term of
loan, other fees and other terms and conditions and this will be signed by both the
representatives of the company and the borrower same as with his/her co-maker. This is
PROJECT EQUIPMENTS
Every business cannot operate without equipment’s in the workplace. The proposed
parameters to get a lowest price with good standard will observe by the owners. The
project will prioritize the supplier who have a better offer. These equipment’s will be used
by the employees of the business to ensure the smooth operation of the business. The
proponent suggested to have 3 sets of computer, one (1) for the manager and the other
two(2) is to be used by his/her staff or co-employees same as the printer for preparing
and printing the reports. The company must have of at least one (1) unit of telephone/fax
machine for the queries of the prospective clients and for follow-upping other business
related concerns. Two (2) unit of typewriter for preparing cash vouchers, promissory
notes, checks and other documents. And of course calculators to be used for computation
of interest and other related mathematical matters. Since the office space is completely
furnished. The proponent will also propose to have the following furnitures and fixtures.
Proper canvassing as what had observe in purchasing office equipments will also follow.
Three (3) sets of office tables Three (3) roving chairs three (3) sets of waiting chairs for
ORGANIZATIONAL STRUCTURE
The business will employ employees in the office, the cashier, clerk, bookkeeper and
operations head or manager. Duties and responsibilities of each employees are stated
below:
Loans Clerk
- Prepares Official Receipts (ORs) when the borrowers pay their due amount.
Loans Supervisor
– act as supervisor/bookkeeper.
- Checks the works of cashier (cheques, vouchers, ORs, promissory notes & etc.)
Manager/Operations Head
- Analyze borrower’s financial & credit status to determine weather the loans will be
granted or denied.
- Understands, manages and supervises all aspects of cash flow, such as but not limited
to:
processing.
For Loans Clerk Graduate of any business related course Proficient in MS Office With
bookkeeping With 1-2 years experience in related field. Proficient in MS Office With Good
communication skills
For Manager/Operations Head Graduate of any business related course Not more
than 45 years of age With 2-3 years experience in microlending Must be Computer
Literate
FINANCIAL ASPECTS
A. CAPITAL CONTRIBUTION
The study shows that in order to establish a lending company in Surallah, South
Cotabato. The project must have of at least P1,000,000.00 paid-in capital. The proponent
will propose to have P2,000,000.00 paid-in capital twice of the minimum paid-in capital,
due to greater demand of the project. The capital will be from the eleven (11) private
individuals whether they are retired employees or employed but does not affect/influence
the interest of both the business and the company where they employed. They will
contribute as to how much investment they want to raise the projected paid-in capital.
B. BASIC ASSUMPTION
The proponent will assume that the 273 present demand will all avail loans within the year
from the business amounting to P 25,000.00 each with an interest rate of 3% for 3 months
term. On the other hand, the proponent will project 3uncollectible accounts, this will be
the basis to be used in projecting loans receivables & the one-percent (1%) provision for
bad debts. As well as the 2.5%penalties will be imposed for late payments and the
proponent will assume that 5 borrowers may fail their outstanding obligation on the
specified term. The company will also open a bank account and assumed to earn a 1%
interest on deposit. For the purpose of preparing Financial Statements the proponent will
assume that the project will start its first year of operation on the first day of January2014.
Other related matters will be based on the current trend such as utilities (electricity &
water expenses).
FINANCIAL ANALYSIS
A. OPERATING EXPENSES
Electricity 500.00
TOTAL P 3,867.50
B. SCHEDULE OF SALARIES
To attract qualified employees to fit the position. The company will offer an above
minimum wage. The salaries of each employees are as follows depending on the postion
All employees will receive a mid-year bonus equivalent to their one (1) month
salaries. A Christmas bonus base on the company’s performance. Thirteenth month pay
will be given also as provided by our labor code. Aside from fringe benefits mentioned
above the company will also give a yearly medicine allowance of P1,200.00 for each
employees. Other benefits as provided by our Labor Code will be given also.
PROJECTED INCOME STATEMENT
INCOME
Less: EXPENSES
Salaries P 348,000.00
ASSETS
LIABILITIES
its first year of operation. As per the interviews and questions conducted by the proponent,
having a lending company in the area will assist the needs of certain individuals for their
financial shortcomings. Therefore, I conclude as per the data gathered and based on the
results, it shows that the project will help and assist the financial needs of different
individuals and in return it will give an income to the company. I also conclude that with
this, it will minimize and later on eliminate the traditional lending from underground
lenders that offer a short-time lending like Bombay ( 5-6). On the other hand, I recommend
that this project be implemented. And research supports that with the 65% increase for
the future demand, this industry will continue to grow for the following years.