Republic of the Philippines

Tarlac College of Agriculture

Camiling, Tarlac

Institute of Engineering and Computer Studies

Information System Management and Administration

(ITEC21)

Angat Pinoy Money Lending Business Plan

By:

Adarayan, Girlyn P.
Del Rosario, Arlene P.
Flores, Ivy Garnet S.
Macasieb, Gerald
Santos, Jiesil P.
Saludario, Romualdo L.

October 2010
Introduction

A money lending company 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, credit cards 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
owner to take the risk. Focusing on a small market can be a good start
though in order to target loyal customers and develop brand loyalty.
Hence, a big company at hand should still give importance into this
strategy in order to cope up with the increasing demand of the market.

Angat Pinoy Lending Company is a money lending company that

extends help to those people who wants to establish their own
business with a minimum loan of P3, 000.00 pesos, payable within 6
months with 3% 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 judgment. We strive to
 provide full support to the Loan Consultants, the core of our
business.
• To our employees we commit to provide challenging
opportunities for personal and professional growth as we
recognize excellence 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.

Vision

We aim to be the dominant lending company in the

Philippines and a significant player in the rest of Southeast Asia by
the year 2015.

Values

1. We commit to honesty and integrity. We will be honest in all

our dealings, true to ourselves, to our company and to the
people we serve.

2. We strongly adhere to a high level of confidence. We abide

by a “can do” attitude towards the attainment of our vision to
be the dominant lending company in the Philippines and be a
significant player in Southeast Asia in 2015.

3. We value commitment and excellence. As an integral part of

the company, outstanding Loan Consultants, Officers and
 staff whether line or support will be acknowledged. Those
who have contributed significantly to the attainment of the
company's targets will be recognized accordingly through
financial rewards and recognition program.

Target Customers

Angat Pinoy Lending Company 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, 18 years old and above, residence of Sta.
Ignacia and neighboring municipality (Mayantoc and Camiling) are the
primary target customers of the company.
 Company’s Organizational and Functional Chart

GERALD MACASIEB
President
• Responsible in the
decision making of the
company

GIRLYN P. ADARAYAN
Vice-President
• Acts as the
manager of the
Company

ROMUALDO L. SALUDARIO JIESIL P. SANTOS

Auditor Loan Committee Chairman
• Check every activities • Access all the clients
(financial statement) of the information
company • Presents loan case to the
• Submits report to the Vice President
President

ARLENE P. DEL ROSARIO

IVY GARNET S. FLORES
Treasurer/Cashier
• Handles remittance and save
it on the company’s bank
Office Clerk
• Sort and encode files
• Do office work
• Help in company promotion
• Assign in Information Area
Loan Committee Supervisor
• Responsible in promotional
activities of the company
• Prepares the monitoring
schedule, and duties of
every staff
Staff
• Responsible for the initial
selection of client
• Visits to investigate the
business of the clients (C.I
Investigation)
Proposed Location

FIRST FLOOR SECOND FLOOR

Main Comfort
Door / Information Room Owner’s
Entrance Office
& Exit M F

Application/ Manager’s
Membership Office

Visitors
Lounge
Clients’
Lounge
Release of Owner’s
Loan Office
Comfort
Room Stairs
Conference Room
M F
Fire Exit

Figure 1 Angat Pinoy Building Floor Plan

Angat Pinoy Money Lending Company is to be located at Sta.

Ignacia, Tarlac near the Sta. Ignacia Public Market. Primarily, its target
clients are from Sta. Ignacia and along its neighboring municipality.

It is a two storey building. The first floor is consist of clients’

inquiry area or information area, application area or membership are,
release of loan area, clients lounge and comfort room while the second
floor is consist of owner’s office, manager’s office, accountant’s office
and a small conference room. The small conference room is intended
for the monthly meeting of the staff.
Operational Plan

Figure 2 Angat Pinoy Operational Plan

 The company’s operational plan is consist of promotional
process, application process, approval or rejection process, registration
process for the approved loan, programming of disbursements and
notices, Discussion process and Clients signing of contract.

Use Case Diagram of Angat Pinoy Lending Process

Establishing Angat Pinoy Lending Company

A lending company, which is synonymous with “lending

investor,” refers to a corporation engaged in granting loans from its
own capital funds or from funds sourced from not more than 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.

A lending company shall be established ONLY as a corporation

registered with the Securities and Exchange Commission (SEC).
Existing lending investors organized 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 Million Pesos. Existing lending companies shall comply with the
required minimum capitalization within the time set by SEC. The SEC
may also prescribe a higher minimum capitalization if warranted by
circumstances.

At least a majority of the voting capital stock of a lending

company shall be owned Philippine citizens. The percentage of foreign-
owned voting stock in any existing lending company, if such
percentage is in excess of 49% of the voting stock, shall not be
increased but may be reduced and, once reduced, shall not be
increased thereafter beyond 49% of the voting stock of the lending
company. The percentage of foreign-owned voting stocks shall be
determined by the citizenship of the individual stockholders. In the
case of corporations owning shares in a lending company, the
citizenship of the individual owners of voting stock in such corporations
shall be the basis in the computation of the percentage. No foreign
national may be allowed to own stock unless the country of which he is
a national accords reciprocal rights to Filipinos.
 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 Republic Act No. 3765 (the “Truth
in Lending Act”) and Republic Act 7394 (the “Consumer Act of the
Philippines”). The Monetary Board of the Bangko Sentral ng Pilipinas,
in consultation with the SEC and the industry, may prescribe such
interest rate as may be warranted by prevailing economic and social
conditions.

In order to establish this business proposal, the company must

follow the said requirements above and obey the law. In this case, the
target date of establishment is on January 2012.

Why Angat Pinoy Lending Business?

In a growing industry like this, there is a need to respond to the

demands of the people and achieve its goals and objectives amidst of
the growing number of competitors. There is now a high demand when
it comes to money lending companies and it is expected to expand 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. Money lending companies in the Philippines are steadily
increasing although economic recession has blatantly affected many
businesses. Some people who borrow money are part or affiliated with
big companies or stable organization and borrowing money helps them
to take the actions on how to avoid economic crisis. Thus, Angat Pinoy
Lending Business is the best solution.
Proposed Marketing Strategies

 Web Advertising

Creating the company’s own website can be a good point for the
company because the use of computers and internet today is very in
to the mass. Putting up a website can be free through web- hosting
sites such as blogs and other. A lot of sites like the geocities, freewebs
and other can offer the company a limited amount of online space.
However, if the company wants its own domain name such as
angatpinoy.com, it has a different cost.

 Print Advertising

The current marketing strategy should be retained because it

attracts people for the company. It somehow prevails a low response
it, but it is a good publicity for the company. Leaflets and flyers are
not expensive though; thus, it will make a good advertising of the
service and the benefits that the people could get in the company.
If 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. In addition to, print advertising
should be presented visible enough for the readers and make sure that
it possess a good picture and a good Unique Selling Proposition (USP).

 Sales Promotion
 A raffle promotion is seen to be a good way of increasing profits
and developing brand loyalty. It is suggested that activities should be
conducted by the company in order to encourage clients to be active in
the company promotions. In the raffle promo, all clients that will have
their loans from January- December of the same year will have the
chance to join the raffle draw by the end of the year. The major prize
for the raffle draw will be a tricycle and will be given on the Christmas
or on the New Year’s party. But, starting the first day of December,
minor prizes will be given away for lucky clients such as rice cooker,
flat iron, washing machines, oven toaster and other appliances. A good
title for this promotional tool is “May loan ka na! May tricycle ka pa!”

Objective of the sales promotion:

• to increase profits
• to attract new customers
• to retain loyal customers
• to expand 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. Educating and informing them about the company and its
benefits can make a positive impression for the company and is
expected to have a high response rates. Reaching the people can
answer their questions directly and avoid false advertising.

Sponsorships for livelihood programs and other activities in line

with the goals and objectives 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 strategy:

 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
SWOT Analysis
SWOT Analysis for attracting potential customers and developing
brand loyalty.
Strengths
• Right services, quality and
reliability.
• Superior customer relations
vs. competitors.
• Secured legal terms.
• Outstanding staffs
• Prioritizes customers
• Open for innovations.
• Can serve from existing
sites.
• Management is committed
and confident.
Opportunities
• Could develop new services.
• Competitors have more
legal requirements needed
• Profit margins will be good.
• Can surprise competitors.
• Can expand in a new
market
• Could seek better supplier
deals.
Weaknesses
• Advertising strategy is low
• A small player in the
market.
• Need more sales people.
• Limited budget.
• Don't have a detailed plan
yet.
• Customer service staff
needs training.
Threats
• Economic recession
• Environmental effects would
favour larger competitors.
• Limited market demand
• Retention of loyal customers
• Possible negative publicity.
• Vulnerable to reactive
attack by major
competitors.
 Generally, marketing strategies for a lending business can be as
easy as outlining them and plan for its execution. But, the main
process of it is quite difficult. Money lending business is a complex
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. Such 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.

Proposed strategies are mainly through web and print

advertising, sales promotion and publicity. The marketing tools above
are expected to get a positive feedback after the detailed plan has
been prepared. It is recommended that a thorough marketing research
should then be able to follow upon visualizing the efficiency of the
proposal.

Definition 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 existence of the
loan and the encumbrance of that realty through the granting
of a mortgage which secures the loan

• Origination Fee - 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.
• Surety - promise by one party (the guarantor) to assume
responsibility for the debt obligation of a borrower if that
borrower defaults

• Underwriting - refers to the process that a large financial

service provider (bank, insurer, investment house) uses to
assess the eligibility of a customer to receive their products
(equity capital, insurance, mortgage, or credit).

• SWOT Analysis – is a strategic planning method used to

evaluate the Strengths, Weaknesses, Opportunities, and
Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or
project and identifying the internal and external factors that
are favorable and unfavorable to achieve that objective.