Rural Improvement Club Barangay Pico La Trinidad, Benguet

Money Lending Business Plan

Introduction A money lending agency is a kind of business that emerges in the market today. Considering the fact that the people are largely affected by the economic recession, many lending businesses are really an aid to their financial needs. This

kind of business gives people the opportunity to get credit through various ways such as personal loans, and the like. A lot of competitors for a money lending business have been in the market such as the big banks and other businesses that are willing and able to lend money to the people. Owning a money lending business is indeed a difficult one because of the fear that it might end into bankruptcy. However, success in this kind of business requires the proponents to take the risk. ocusing on a small market can be a good start though in order to target loyal customers and develop brand loyalty. As the !rovincial "overnment of #enguet e$pressed their intention in assisting income%generating proposals for its communities, the &ural 'mprovement Club of #arangay !ico considered this venture as a way to help the women and families of its community. The &ural 'mprovement Club proposes a money lending business that e$tends help to those people who wants to establish their own business or have immediate needs with a minimum loan of P__________ pesos, payable wit in ! mont s wit "# interest$ Clients can pay it on weekly or monthly basis.

Mission To our loan consultants and borrowers we commit to provide a high quality of service through fast and efficient account processing anchored on sound credit (udgment. )e strive to provide full support to the *oan Consultants, the core of our business. To our employees +&'C members, we commit to provide challenging opportunities for personal and professional growth as we recogni-e e$cellence through outstanding productivity and enhance their talents through continuous training and development programs. To our shareholders we commit to provide optimum return on their investment and to protect every aspect of concern in company. %ision )e aim to be a primary lending agency in *a Trinidad, #enguet and a significant player in the efforts to community development.

%alues .. )e commit to honesty and integrity. )e will be honest in all our dealings, true to ourselves, to our company and to the people we serve. /. )e strongly adhere to a high level of confidence. )e abide by a 0can do1 attitude towards the attainment of our vision.

2. )e value commitment and e$cellence. As an integral part of the organi-ation, outstanding *oan Consultants, Officers and staff whether line or support will be acknowledged. Those who have contributed significantly recogni-ed program. to the attainment through of the company3s rewards targets and will be accordingly financial recognition

Target Customers &ural 'mprovement Club *ending provides their clients financial services through individual lending methodology. Only clients with well established credit history are able to receive individual loans. Clients with small businesses, .4 years old and above, resident of *a Trinidad, #enguet are the primary target customers of the company.

&rgani'ational and (unctional C art

___________ President &esponsible in decision making of company

the the

__________________ Vice-President Acts as the manager of the Company ______________ Auditor Check every activities +financial statement, of the company 6ubmits report to the !resident Treasurer/Cashier Handles remittance and save it on the company5s bank &ffice Cler) 6ort and encode files 9o office work Help in company promotion Assign in 'nformation Area
Proposed Location Barangay Pico, La Trinidad Benguet

__________________ Loan Committee Chairman Access all the clients information !resents loan7credit case to the 8ice !resident

Loan Committee Supervisor &esponsible in promotional activities of the company !repares the monitoring schedule, and duties of every staff *taff &esponsible for the initial selection of client 8isits to investigate the business of the clients +C.' 'nvestigation,

+stablis ing RIC Lending ,gency A lending company, which is synonymous with 0lending investor,1 refers to a corporation engaged in granting loans from its own capital funds or from funds sourced from the PROVINCIAL !udget" GOVERNMENT OF BENGUET under the livelihood progra

A lending company shall be established O:*; as a corporation registered with the 6ecurities and <$change Commission +6<C,. <$isting lending investors organi-ed as single proprietorships or partnerships shall be disallowed from engaging in the business of granting loans to the public one year after the date of effectively of the law. The required minimum paid up capital of any lending company is One =illion !esos. <$isting lending companies shall comply with the required minimum capitali-ation within the time set by 6<C. The 6<C may also prescribe a higher minimum capitali-ation if warranted by circumstances.

A lending company may grant loans in such amounts and reasonable interest rates and charges as may be agreed upon between the lending company and the debtor. However, the agreement shall be in compliance with the provisions of &epublic Act :o. 2>?@ +the 0Truth in *ending Act1, and &epublic Act >2AB +the 0Consumer Act of the !hilippines1,. The =onetary #oard of the #angko 6entral ng !ilipinas, in consultation with the 6<C and the industry, may prescribe such interest rate as may be warranted by prevailing economic and social conditions. 'n order to establish this business proposal, the company must follow the said requirements above and obey the law. 'n this case, the target date of establishment is on Canuary /D./. - y RIC Lending Business. 'n a growing industry like this, there is a need to respond to the demands of the people and achieve its goals and ob(ectives amidst of the growing number of competitors. There is now a high demand when it comes to money lending

companies and it is e$pected to e$pand in the coming years considering the fact that many people are in to borrowing money to use as a tuition fee, a business capital, and lot more. And usually, people borrow money in a company that they could trust. =oney lending companies in the !hilippines are steadily increasing although economic recession has blatantly affected many businesses. 6ome people who borrow money are part or affiliated with big companies or stable organi-ation and borrowing money helps them to take the actions on how to avoid economic crisis. Thus, Angat !inoy *ending #usiness is the best solution. Proposed Mar)eting *trategies Print Advertising The current marketing strategy should be retained because it attracts people for the company. 't somehow prevails a low response it, but it is a good publicity for the company. *eaflets and flyers are not e$pensive thoughE thus, it will make a good advertising of the service and the benefits that the people could get in the company. 'f more budgets will be allotted for the print ad, it is best if the company will start placing some ads on the newspaper because the target market is a wide reader of the newspaper. Clients are more into reading newspapers or watching television. They could easily adopt the ads on television or from a newspaper. 'n addition to, print advertising should be presented visible enough for the readers and make sure that it possess a good picture and a good Fnique 6elling !roposition +F6!,. Sales Promotion A raffle promotion is seen to be a good way of increasing profits and developing brand loyalty. 't is suggested that activities should be conducted by the company in order to encourage clients to be active in the company promotions. Ob(ective of the sales promotionG to increase profits to attract new customers to retain loyal customers

to e$pand market display to innovate on the current marketing strategy that the company uses

Seminars and Sponsorships This marketing strategy is for developing public relations and publicity for the company. Conducting seminars on the communities where potential clients are seen is a very good idea for attracting new ones. <ducating and informing them about the company and its benefits can make a positive impression for the company and is e$pected to have a high response rates. &eaching the people can answer their questions directly and avoid false advertising. 6ponsorships for livelihood programs and other activities in line with the goals and ob(ectives of the company are also suggested because it develops a good relation between the company and the target audience. Additional considerations for a successful marketing strategyG employee benefits to motivate staffs maintaining profits by increasing its operations developing customer relations attracting and maintaining competent employees developing a positive public image in the community

*-&T ,nalysis

6)OT Analysis for attracting potential customers and developing brand loyalty.

*trengt s &ight services, quality and reliability.

-ea)nesses Advertising strategy is low

A small player in the market. :eed more sales people. *imited budget. 9on3t have a detailed plan yet. Customer service staff needs training.

6uperior customer relations vs. competitors.

6ecured legal terms. Outstanding staffs !rioriti-es customers Open for innovations. Can serve from e$isting sites. =anagement is committed

and confident. &pportunities Could develop new services.

T reats <conomic recession

Competitors have more legal requirements needed !rofit margins will be good. Can surprise competitors. Can e$pand in a new

<nvironmental effects would favour larger competitors. *imited market demand &etention of loyal customers !ossible negative publicity.

"enerally, business can be as easy as market marketing strategies for a lending 8ulnerable to reactive outlining them and plan for its e$ecution. #ut, the main process of it is quite difficult. Could seek better supplier attack by ma(or =oney lending business is a comple$ business most especially in times of economic recession. However, it should be regarded as a good opportunity for the company to attract potential customers because this is the time where they need money the most. 6uch marketing strategies yield not only increase in profits, but also the welfare of the society which will make its operation capabilities stronger in the long run.

deals.

competitors.

!roposed strategies are mainly through print advertising, sales promotion and publicity. The marketing tools above are e$pected to get a positive feedback after the detailed plan has been prepared. 't is recommended that a thorough marketing research should then be able to follow upon visuali-ing the efficiency of the proposal. /efinition of Terms Collateral % security pledged for the payment of a loan

Mortgage loan % a loan secured by real property through the use of a mortgage note which evidences the e$istence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan

&rigination (ee % a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan.

*urety % promise by one party +the guarantor, to assume responsibility for the debt obligation of a borrower if that borrower defaults

*-&T ,nalysis 0 is a strategic planning method used to evaluate the 6trengths, )eaknesses, Opportunities, and Threats involved in a pro(ect or in a business venture. 't involves specifying the ob(ective of the business venture or pro(ect and identifying the internal and e$ternal factors that are favorable and unfavorable to achieve that ob(ective.