Cousin's Business

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CHAPTER I
THE COMPANY PROFILE
BUSINESS CONCEPT
A. Business Name
Food is one of the most essential and basic needs of every individual as it serves
as the main supplying requirement of every individual to meet other important ends in
order to live. The concept of the company’s name is based on one of its chief products;
Chicken Wings with various flavors savored to hot and cold coffee and tea. It offers
refreshing and satisfying meals and teatimes to the target customers.
Figure 1. The Logo
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Business Policy Paper Page 1

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Table 1 - Logo Interpretation
Figure / Object / Color Meaning
B. Business Offering
As many people have the sincerest desire to relax, spoil themselves and spend
time with their family and closest peers, most of them would agree that eating and
drinking coffee and tea in a comfortable hang out provide vigorous opportunity to
achieve these desires. People of different walks of life and different point of views would
always agree that you could be thrifty on many other things but never on food. However,
some people still choose to be economical and eat food that are cost-efficient but are
highly satisfying, hence, the business caters both consumer psychology.
WingTea Time serves Milk-based teas, coffees and flavored chicken wings rice
meals which details and are further elaborated below:
1. Products
 Milk Tea

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Technically, a milk tea is a drink when milk is added to the tea. However,
milk tea could also be referred to all kinds of drinks with milk added on it
such as fruit drinks, coffee and chocolate. There will be 12 flavors from
pre-mixed milk tea powders with tapioca pearl as topping and will be
served in three different sizes.
Flavors Sizes Topping

1.
2.
3. Baby (Small - 16 oz)
4.
Young (Medium - ) TAPIOCA PEARL
5.
6. Adult (Large - )
7.
8. Granny (Extra Large - )
9.
10.
11.
12.
 Flavorful Chicken Wings
Fried chicken wings dipped into variety of sauces! Whether you go
buttery, hot sauce route or the sticky fruit-glazed and honey-glazed or
Asian-sauced, hot wings are the ultimate messy finger food. Below will be
the various sauces and crust to the chicken wings:
Chicken Wings Sauce Description

Classic Buffalo

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1. Sriracha A fun twist of buffalo wings, blend

sriracha with butter, lime and
cilantro!
2. Jalapeno
3. Maple-Chipotle
Sticky Sauces
4. Barbeque
5. Soy Garlic
6.
2. Purpose of the Service
As the need for money increases to sustain the financial needs of different
individuals in the area such as the need to support studies and other basic needs, many of
them choose to avail loans from underground lending (e.i. Bombay 5-6, short time & the
like) which offer as high as 20% interest rate which makes borrowers sunk from their
financial obligations (De Luzon, 2013).
These underground lending, though highly demanded for its daily and weekly
payment terms, cannot really help the individuals in their financial shortcomings in the
long run. This has become the basis and main purpose of this study; to establish lending
company that will offer a reasonable interest rate to cater the financial shortcomings of
the market.
C. Unique Quality

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Within the varied needs of people financially, (purchase land, get a head on a
business deal, or require some assistance, getting a major appliance for their home or
business and payment for their kids’ education), loans help them to get a lift out of the
financial situations they are facing. Establishing a business may have an initial drive to
gain profit; this lending business has its primary objective to provide quality service to
the people.
Other than what the usual lending corporations have, one unique quality of
FLEInc. is a service, though considered a short-term loan, offers the lowest interest rate
of at least three (3) percent per month.
Also, one key feature of FLEInc. is the 15 th and 30th payment dates. This will
allow lighter burden to the borrowers and avoid will avoid delinquency and un estimated
monthly budget plan.
Finally, FLEInc. will make sure that there will be a lasting peace of mind that the
borrower’s family will not have to shoulder payment of an unpaid loan when the
borrower dies, thus maintaining a normal way of living free of debt.
D. Business Structure
Fund Lending Essential Inc. will be established as corporation as per requirement
of RA 9474 also known as Lending Company Regulation Act of 2007 an Act Governing
the Establishment, Operation and Regulation of Lending Companies.
E. Location

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Fund Lending Essential Inc. will be establish right at the owner’s home at Jacoba
Street, Lingayen, Pangasinan, in which close to greater target market such as public and
private schools, government (municipal and provincial) offices and other business
establishments.
The idea of establishing the business right just at the owner’s home is to be able to
cut overhead costs.
Figure 2 - Vicinity Map
Lingayen is a 1st class Municipality in the province of Pangasinan and is
politically subdivided into 32 barangays including Barangay Poblacion, the central
barangay in the Municipality and is where the business is located.
In terms of educational institutions, Municipality of Lingayen has a number of
schools established and school employees (teaching and non-teaching staff) could
possibly be the FLEInc.’s main target market.

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The municipality is also the home to three colleges and one university with two
campuses.
 Pangasinan State University - Both Lingayen Campus and Open University

Systems
 Pangasinan Memorial College
 The Adelphi College
 St. Columban's College
There are also numerous elementary schools in the Municipality divided in three school
districts: I, II,and III.
Figure 3.1 - Building Perspective
Jacoba Street, Poblacion, Lingayen, Pangasinan
Figure 3.2 - Floor Plan

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F. Organizational Structure
Following the mandates of the Batas Pambasa Blg. 68 aslo known as The
Corporation Code of the Philippines, Fund Lending Essential Incorporated is a
corporation owned by the proponent’s family members and some family friends whose
ownerships are represented by shares of stock.
Fund Lending Essential Incorporated will have a board of directors, which are
elected by the shareholders to oversee the corporation's management. The board of
directors is elected to make decisions that are in the best interest of the shareholders.
Below is a figure showing the organizational structure of Fund Lending Essential
Incorporated.
Figure 4 - Organizational Structure

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G. Strategic Analysis of the Company and Its Business
MISSION
Fund Lending Essential Incorporated is committed to serve the community
through helping them meet their financial needs
VISION
To be the leading small scale financial service in Lingayen.
GOALS AND OBJECTIVES
 To provide a helping hand and lift the individuals to create a sustainable living for
their families;
 To contribute welfare to the community and promote social responsibility;
 To gain trust and confidence from future investors;
 To be fair and just to employees especially to clients;
 To have profitable growth and expansion; and
 To be a company that is trusted in the marketplace.

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CORE VALUES
Fund Lending Essential Incorporated, a company that stands for integrity and sets
a standard for it, inspiring others to be always truthful and fair as principles held higher
than profit and traditional business goals, adheres to the following core values:
ACCOUNTABILITY
The company will take personal accountability for our actions and results with a
focus on finding solutions and achieving results. We will actively engage in discussions
and commit to decisions once they are made by involving others in decisions and plans
that affect them. We will keep promises and commitments made to others and personally
commit to the success and well-being of teammates.
HUMILITY
Fund Lending Essential Incorporated have the humility and eagerness to value openness
and curiosity to learn from anyone, anywhere. It will seek and provide honest feedback
and are open to personal change and continuous improvement. We learn from mistakes
and successes in equal measure.
TRUST
Fund Lending Essential Incorporated will offer and build long-term partnering
relationships with clients. The company believes that trust is the foundation of
relationships.

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INTEGRITY
Integrity is the basis of excellence in our work. When it comes to virtues, one of
the most important is integrity. It is based in a value system that places people above
profits, relationship above ROI, reputation above revenues. It is the company’s belief that
becoming a person of integrity requires a personal quest for truth in all areas of life.

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Chapter 2
THE CHALLENGE
It is a difficult task for everybody to put up a business. Many factors will be
considered. For a lending business conceptualizing itself is a very big challenge most
especially that it involves venturing big amount of money.
While it is true that entrepreneurship is a rewarding scheme, it also comes with a
host of challenges. One possible challenge that Fund Lending Essential Incorporated
might be facing is considering the fact that it is new in the industry. There are also several
microfinance companies within the area of Lingayen and other financial institutions such
as banks and cooperatives that are also offering lending services. These are probable
competitors of Fund Lending Essential Incorporated.
In addition, basic trust in the finance and lending system is often lacking in many
of the middle income earners in which the company targets as one of its market.
However, the proponent does not want to discriminate, yet sees this challenge as an
opportunity to reach to the minority and low-income borrowers as they are being charged
with other higher rates and interests by underground lenders.
Furthermore, another challenge that the company sees to face is the lack of system
or program in the country that runs credit check and investigates past credit performance
of the borrowers. Nonetheless, the company is still positive in the security of loans bound
with legal and proper documentations, promissory notes and presence of co-makers.

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Above all, the company believes that no matter how big or small these challenges
could be, as long as there are dedicated staffs and optimistic leaders, these challenges will
be too trivial.
Finally, just like other lending institutions, the company is confident that as long
as needs arise, microlending will still be one of the people’s best resort.

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Chapter 3
MARKETING ANALYSIS
Marketing plays the most important role for the success of a business. In this
chapter, the business’ marketing objectives are laid out together with the plans or actions
that will be needed to achieve these objectives. Market is very essential part of the
business since it is through them that the life of the business will depend on.
Furthermore, this chapter includes the profile of the respondents which aided the
researcher to create this part of the study.
A. Target Market
One of the most significant step in coming up in the marketing plan is identifying
the potential customers or the target market. With this, the researcher can implement and
come up with the strategies suited with the identified target market
Fund Lending Essential Incorporated’s target market will focus in the 274
teaching and non-teaching staff of Pangasinan National High School though the company
will also soon cover the other future market such as the employees of LGUs, offices, and
pensioners and other schools within the area.
The table in the next page shows the target population size of the target market, its
frequency and percentage distribution is likewise presented.

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Table 2. Target Market Population
PNHS EMPLOYEES POPULATION SIZE PERCENTAGE OVER THE

TOTAL POPULATION
SIZE
Junior High School 195 70%
Teachers
Senior High School 55 20%
Teachers
Non-Teaching Staff 29 10%
TOTAL 279 100%
Table 2 presents the target market from Pangasinan National High School which
consists of 279 total number of employees. It can also be seen from the table that 70% of
them are coming from Junior High School Teachers, 20% are from Senior High School
Teachers and 10% from Non-Teaching Staff.
The table further implies that there is quite a number of teaching personnel
coming from the Junior High School and an average number of teachers from the senior
high school which could be assumed to be new in the service.
The data in this target population is a favorable result for this business project
especially that the company will be offering lower interest rates.
B. Demand Analysis
Companies use market demand analysis to understand how much consumer
demand exists for a product or service. This analysis will help the management to
determine if FLEInc. can successfully enter a market and generate enough profits to
advance business operations.

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In this study, the proponent sees that a demand over teachers’ loan since most of
the teachers and even other professions nowadays are engaging to business, therefore
resorting to loans. Moreover, it is also perceived that there is willingness over the target
market to borrow from lending institutions and they have the ability to pay their debts.
C. Survey Result
This part of the study presents the profiles of the target population in terms of
gender, age and source of income. Gathered survey information such as Existing and
Non-Existing Loan, Problems Encountered with the loan, Obstacles in applying for a
loan, Reason for Applying a Loan and a lot more are likewise presented.
Table 3 below shows the frequency and percentage distribution of the profile of
the respondents in terms of gender.
Table 3. Frequency Distribution of Profile of the Respondents in terms of Gender

N=162
Gender Frequency %
Male 35 22%
Female 129 78%
Total 164 100%
It can be seen that out of 162 respondents, 129 or 78% of the total population are
females and the remaining 35 or 22% are males. It goes to show that majority of the
respondents are females.
Table 4. Frequency Distribution Profile of the Respondents in Terms of Age

N=162

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Age Frequency %
18-25 20 11%
26-35 49 30%
36-45 49 30%
46-55 38 23%
Over 56 8 5%
Total 164 100%
Table 3 shows that most of the respondents’ ages are ranging from 26-35 percent
and 36-45 years both having 30 percent. On the other hand only eight (8) or five (5)
percent of the respondents are over 56 years old.
The data from the table shows that most of the respondents belong to the middle-
aged employee’s category in which it can be infer that they still have a lot to accomplish.
This finding suggests this group implies a positive market for the business.
Source of Income
Question 1: What are the different financing methodologies that you are using to
finance your business or needs?
Table 5. Frequency Distribution of Source of Income: Financing Methodologies

N=164
Financing Methodologies Frequency %
Borrowing from relatives 52 32%
Borrowing from financial Institutions 44 27%
Applying personal loan from bank 43 27%
Credit Card Overdraft 13 7%
Others 12 7%
Total 164 100%
The survey result on financing methodologies as source of income of the
respondents shows that most of the respondents with 52 or 32 percent are borrowing from

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their relatives; 44 or 27 percent of the total population borrows from financial
institutions; 43 or 27 percent of the total population applies personal loan from bank; 13
or 7% of the population uses credit card, and only 12 or 7 percent uses other financial
methodologies.
The result clearly shows that the respondents are willing to borrow money with
interest rates as evidence by 44 and 43 respondents borrow from financial or lending
institutions and from banks respectively.
Question 2: Do you have an existing loan from the bank or from other financing
services?
Table 6: Number of Respondents with Existing and Non-Existing Loan
N=164
With Existing Loan Frequency Percentage

Yes 127 77%
No 37 23%
Total 164 100%
As seen from table 6, 127 or 77 percent of the total population have existing loans
from bank or other financing services while only and 37 or 23 percent of the total
population have no existing loans.
The result strengthens the previous result that the respondents are in to borrowing
money from financial institutions and are willing to pay interests.
Follow-up question: If yes, what are the problems that you are facing with the loan?
Table 7: Problems Encountered with the Existing Loan

N=127

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Problems Frequency Percentage

High Interest Rate 50 38%
Lots Paper works required 35 28%
Long Time taken to extend the loan 32 26%
Payment conditions 10 8%
Total 127 100%
As to the problems encountered by those who have existing loans, 50 or 38
percent says that they have a problem with high Interest Rate. 35 or 28 percent
encountered problem in terms of the ample amount of paper works required before
obtaining a loan, and there were ten (10) or 8% encountered problems under payment
conditions.
Follow-up Question: If NO, what hindered you to apply for a loan?
Table 8: Hindrances in applying for a loan

N=127
Hindrance Frequenc Percentag
y e
Collaterals 12 32%
Cash Flow that is not consistent with the banks 20 54%
requirements
Lack of standardized accounting and books 5 14%
Total 37 100%
Out of the 37 respondents who do not have existing bank loans, 20 or 54 percent
said that they did not avail for loans due to the inconsistency of cash flow with the bank
requirements while only 5 or 14 percent did not avail for loan due to the lack of
standardized accounting and books.

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Question 3: What would be the possible purpose of applying for a loan?
Table 9. Reason for Applying a Loan

N= 164
Purpose / Reason for Loan Frequency Percentage
Investment 66 40%
Marriage 3 2%
Education 31 19%
Travelling 29 18%
Others 35 22%
Total 164 100%
Deduced from the table above are the respondents’ reasons for applying loans. It
can be seen that most of the respondents is probably to apply for loan for investment with
66 0r 40 percent. While only 3 or 2 percent for their marriage.
QUESTION 4: If you need financing and FLEInc. Is your only resort, would you
consider it as a mean for financing?
Follow-up: If yes, how much interest rate are you willing to pay for your short-
term loan? (Max of 6 months)
Table 10: Preferred Interest Rate for Short-Term Loan

N= 164
Preferred Interest Rate Frequency Percentage
3 percent per month 164 100%
Total 162 100%
Table ten (10) from the previous page shows the preferred interest rate of
the respondents if they will avail of the short-term loan of maximum of six (6) months. It

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can be obviously seen that all of them wanted the lowest interest rate of three (3) percent
per month.
Follow-up: For long-term loan (1-2 years), how much interest rate are you
willing to pay?
Table 11: Preferred Interest Rate for Short-Term Loan

N= 164
Preferred Interest Rate Frequency Percentage
6 percent per annum 164 100
Total 164 100
Similar to the previous table, table 11 that all of the respondents are willing to pay
for the lowest interest rate at Fund Lending Essential Incorporated if they will avail of the
long-term loan of maximum of two (2) years.
QUESTION 5: How much would you avail for your short-term loan (Maximum of 6
months) ?
Table 12: Preferred Amount of short-term loan
N=164
Preferred Amount Frequency Percentage
5,000.00 to 10,000.00 32 20%
10,001.00 15,000.00 43 25%
15,001.00 20,000.00 32 20%
20,001.00 25,000.00 14 9%
25,001.00 30,000.00 14 9%
30,001.00 50,000.00 29 18%
TOTAL 164 100%

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Table 12 from the previous page reveals the preferred amount that the respondents
would avail for short-term loan. The table shows diversified responses; 43 or 25 percent
would avail a short-term loan amounting to 10,001Php to 15,000Php.; 32 or 20 percent
for the amount of 5,001Php to 10,000Php and 15,001Php to 20,000Php; 29 or 18 percent
for the amount of 30,001Php to 50,000Php; while only 9 percent or 14 respondents would
avail for 20,001Php to 25,000Php and 25,001 to 30,000Php.
QUESTION 6: How much would you avail for your long-term loan (Maximum of 2
years)?
Table 13: Preferred Amount of long-term loan
N=164
P 5,000.00 to P 10,000.00 5 3%
11,000.00 15,000.00 8 4%
16,000.00 20,000.00 12 7%
21,000.00 25,000.00 14 9%
26,000.00 30,000.00 45 28%
31,000.00 50,000.00 80 49%
Total 164 100%
Table 13 shows the preferred amount that the respondents would avail for long-
term loan. It can be seen that 78 or 49 percent of the respondents would prefer to loan the
highest amount of 31,000Php to 50,000Php payable of maximum of two (2) years while
only five (5) or 3 percent would avail 5,000Php to 10,000Php.

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The findings suggest that the respondents would likely to borrow bigger amount
of money in a longer payment conditions.
Table 14. Present Demand

Willing To Avail Unwilling To Avail
Target Market Total
Frequency Percentage Frequenc Percentage
y
Junior HS Teachers 195 146 75% 49 25%
Senior HS Teachers 55 40 73% 15 27%
Non-Teaching Staff 29 15 52% 14 48%
Total 279 201 72% 78 28%
N = 164
Based on the interviews and questions administered by the proponent, the table
above shows the summary of present demand in terms of the willingness of the
respondents to avail loan. As revealed in the table, 146 out of 195 or 75 percent of the
total population of the Junior High School Teachers are willing to avail loan from Fund
Lending Essential Incorporated while only 49 or 25 percent of them are unwilling to
avail.
As to the Senior High School Teachers, out of 55, 40 or 73 percent of them said
that they are willing to borrow money from Fund Lending Essential Incorporated while
there are 15 or 27 percent who said that they are not going to borrow.
Finally, for the non-teaching staff, 15 out of 29 or 52 percent said that they would
avail loans from Fund Lending Essential Incorporated while 14 or 48 percent said that
they would not.

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In summary, 201 or 72 percent of the total 279 target population is most likely to
avail loan services of Fund Lending Essential Incorporated while only 78 or 28 percent
most likely will not avail. One possible reason why there are unwilling to avail loan is
probably the presence of other funding and income source like business.
Table 15. Future Demand

N = 164XMarket Present Estimate Percentage of Projected
demand increase estimated increase demand
(a) (b) (a+b)
JHSTeachers 146 73 75 219
SHSTeachers 40 20 75 60
Non-Teaching Staff 15 7 75 22
Total 201 100 75 301
Presented in table 15 is the projected future market demand formed on a 75
percent increase per year. Based on the present market demand, the proponent set 75
percent target increase in the demand as part of the goals for the business to prosper in
the future.
D. Market Positioning
Market position refers to the consumer’s perception of a brand or product in
relation to competing brands or products. Market positioning refers to the process of
establishing the image or identity of a brand or product so that consumers perceive it in a
certain way.

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In market positioning, it will distinguish the service from others offered to market
segment and also to clearly communicate the Fund Lending Essential Incorporated’s
Competitive advantage.
For Fund Lending Essential Inc., market positioning will be:
Figure 5 – Market Positioning
Fund Lending
For a better
Essential Inc.
One-day loan No hidden

processing charges
APPLY
NOW!
Position statement:
“For a better life, Fund Lending Essential Incorporated is the microfinance
industry that will simplify your financial difficulties through one-day loan
processing with no hidden charges. Apply Now!”

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E. Market Segmentation
Market segmentation is the process of dividing an entire market up into different
customer segments. Targeting or target marketing then entails deciding which potential
customer segments the company will focus on (Dela Vega, 2015)
There are three ways to classify what the customer wants. It is known as needs,
wants and demands. However, to decide the needs, wants and demands, one needs to
carry out segmentation first. And in segmentation, the first step is to determine which
type of customer will prefer your products. Accordingly, that customer will be from your
targeted segment. Who would want your product and whether it falls in the needs
segment, the wants segment or the demands segment. Once you decide the product you
are going to make, then you decide on the market segmentation.
There are 4 different types of market segmentation and all of them vary in their
implementation in the real world. These 4 different types of market segmentation are
namely Demographic Segmentation, Behavioral Segmentation, Psychographic
Segmentation and Geographic Segmentation.
Fund Lending Essential Inc., will use demographic segmentation.
Demographic segmentation is one of the simplest and widest type of market segmentation
used. Most companies use it to get the right population in using their products.
Segmentation generally divides a population based on variables. Thus, demographic
segmentation in this study will use variables such as Age and gender

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FLEInc. Will focus its marketing strategies based on their occupation which are
teachers and non-teaching staff under Department of Education particularly who are
direct released like Pangasinan National High School.
F. Marketing Plan
To have marketing plan is definitely essential because it will serve as the
blueprint that outlines business advertising and marketing efforts for the coming year. It
describes business activities involved in accomplishing specific marketing objectives
within a set time frame. It will also serve as the road map providing you with direction
toward reaching your business objectives. However, a marketing plan is not a static
document. It needs to change and evolve as business grows, and as new and changing
marketing trends develop. Marketing is as important as the product or service you
provide. Without marketing, consumers and clients can't find out about you. If they don't
know about you, they can't buy for you, and as a result, you won't make money.
A marketing plan:
 Gives clarity to who your market is. It's easier to find clients and customers if
you know who they are.
 Helps you craft marketing messages that will generate results. Marketing is
about knowing what your product or service can do to help a target market. Your
messages need to speak directly your market.

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 Provides focus and direction. Email, social media, advertising, guest blogging,
direct mail, publicity, and on and on. With so many marketing choices, you need a plan
for determining the best course of action for your business.
(https://www.thebalance.com/)
The growing importance of social media means that customers and prospects can
easily share both favorable opinions and criticism of your product quality forums,
product review sites and social networking sites, such as Facebook and Instagram. A
strong reputation for quality of service can be an important differentiator in markets that
are very competitive.
For FLEInc. promotion, will consider the use of social media aside from print ads and
other promotions.
Some of the FLEInc.’s Marketing Strategy will be:
1. Creating a business network can be endlessly useful when it comes to sharing marketing
costs and attracting business through referrals.
2. Never miss an opportunity to chat about your business with the people you meet.
3. Giving out free, information pamphlets can be pro-active way to engage in new
customers. Try including genuinely useful content, top tips related to your product or
service.
4. Design calendars to selected customers around the start of the following year, to be given
during the month of December or at the start of the year. This will help to ensure stay
front of mind for them whatever the season.

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The word-of-mouth referrals and our reputation are our most effective advertising
in this very competitive industry.
Chapter 4
OPERATIONS AND MANAGEMENT
The operations of Fund Lending Essential Inc, will be based on AN ACT
GOVERNING THE ESTABLISHMENT, OPERATION AND REGULATION
OF LENDING COMPANIES, known as the “Lending Company Regulation Act of
2007” or RA 9497.
Since the nature of operation of the project is by lending money the supply for
this kind of business is of course the funds that the business will lend to the borrowers.
The project will ensure and will establish a good collection strategy to make repayments
faster and enable to loan out money to more borrowers.
Legal Requirements
Fund Lending Essential Inc. will be base the basic documentary requirements as
provided in RA 9474 also known as Lending Company Regulation Act of 2007 an Act
Governing the Establishment, Operation and Regulation of Lending Companies. To name
those documents and requirements, the project will establish as corporation, with a
minimum paid-in capital of One Million Pesos (P1,000,000.00) and secure a license to
operate from Securities and Exchange Commission (SEC), other documentary
requirements shall secure from the Municipality where the business will be located.

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The business will grant loan to the borrowers with a reasonable interest rate of 3%
per month. 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 teaching and non-teaching staff
of Pangasinan National High School, the proponent will propose to have a Memorandum
of Agreement (MOA) between the lending company and their 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.
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 on his/her first loan
transaction. 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 also in compliance to the requirements
of Truth in Lending Act.
And aside from the above-mentioned requirements, there are legal requirements
needed to be accomplished in order to start the operation of the business. These are the
following legal requirements:
 □DTI Permit

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 Application Form
 □Business Permit
 Application Form
 BIR Permit
 Barangay Permit
 Mayor’s Permit
 Business Registration
□Security and Exchange Commission
Organizational Cost
The business will spend a total of P to acquire all the legal requirements for the
establishment of the business. The organizational costs of the requirements are based on
the City’s costing.
Manpower
The business will employ three (3) employees in the office, the cashier,
bookkeeper and operations head or manager.
Machineries and Equipment
Every business cannot operate without equipment in the workplace. Fund
Lending Essential Inc. will acquire the proposed equipment before the business be
implemented are the following:

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Two (2) sets of computers
Two (2) units of printer
One (1) unit of telefax machine
One (1) unit of typewriter
Three (3) sets of.
computer desktop
Three (3) Calculators
This equipment will be used by the employees of the business to ensure the smooth
operation of the business. The proponent suggested to have 2 sets of computers, one (1)
for the manager and the other one (1) is to be used by FLEInc. staff same as the printer
for preparing and printing the reports. The company must have at least one (1) unit of
telephone/fax machine for the queries of the prospective clients and for follow-up
regarding other business-related concerns. One (1) 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.
The office will also need the following furniture and fixtures such as the
following:
Three (3) sets of office tables
Three (3) roving chairs

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Six (6) chairs for clients
One (1) unit air conditioner 1 hp
One (1) Electric fans
Money or Capital
The study shows that in order to establish a lending company in Jacoba, Brgy.
Poblacion, Lingayen, Pangasinan. The project must have of at least P 1,000,000.00 paid-
in capital due to greater demand of the project which will be invested by the owner and
her family.
Chapter 5
HUMAN RESOURCES MANAGEMENT
Hiring Process
Recruitment
For Loan Interviewer and Clerk
Basic Job Description:

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Interview loan applicants to elicit information; investigate applicants' backgrounds and
verify references; prepare loan request papers; and forward findings, reports, and
documents to appraisal department. Review loan papers to ensure completeness, and
complete transactions between loan establishment, borrowers, and sellers upon approval
of loan.
Job Duties and Tasks for: "Loan Interviewer and Clerk"
1) Verify and examine information and accuracy of loan application and closing
documents.
2) Prepare and type loan applications, closing documents, legal documents, letters, forms,
government notices, and checks, using computers.
3) Interview loan applicants in order to obtain personal and financial data, and to assist in
completing applications.
4) Assemble and compile documents for loan closings, such as title abstracts, insurance
forms, loan forms, and tax receipts.
5) Record applications for loan and credit, loan information, and disbursements of funds,
using computers.

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6) Submit loan applications with recommendation for underwriting approval.
7) Contact customers by mail, telephone, or in person concerning acceptance or rejection
of applications.
8) Contact credit bureaus, employers, and other sources in order to check applicants'
credit and personal references.
9) Check value of customer collateral to be held as loan security.
10) Calculate, review, and correct errors on interest, principal, payment, and closing
costs, using computers or calculators.
11) Answer questions and advise customers regarding loans and transactions.
12) Schedule and conduct closings of mortgage transactions.
13) Present loan and repayment schedules to customers.
14) Establish credit limits and grant extensions of credit on overdue accounts.
15) File and maintain loan records.
16) Order property insurance or mortgage insurance policies in order to ensure protection
against loss on mortgaged property.
17) Accept payment on accounts.

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18) Review customer accounts in order to determine whether payments are made on time
and that other loan terms are being followed.
Graduate of any business-related course Proficient in MS Office With good
communication skills Entry-Level
For Loans Supervisor
Graduate of Accounting or equivalent Knowledgeable in bookkeeping With 1-2 years
experience in related field. Proficient in MS Office with Good communication skills
Job Brief
We are looking for a loan officer to evaluate, authorize approval or deny loan
applications for people or for business. You will act as liaison between customers and our
financial institution and you will help qualified applicants acquire loans in a timely
manner.
Responsibilities
 Evaluate credit worthiness by processing loan applications and documentation
within specified limits
 Interview applicants to determine financial eligibility and feasibility of granting
loans
 Determine all applicable ratios and metrics and set up debt payment plans
 Communicate with clients either to request or to provide information

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 Justify decisions (approvals/rejections) and report on them
 Complete loan contracts and counsel clients on policies and restrictions
 Update job knowledge on types of loans and other financial services
 Maintain and update account records
 Assess customer needs, explore all options and introduce different types of loans
 Develop referral networks, suggest alternate channels and cross-sell products and
services to accomplish quotas
 Go the “extra mile” to build trust relationships, customer loyalty and satisfaction
throughout the underwriting process
 Οperate in compliance with laws and regulations and adhere to lending
compliance guidelines
Requirements
 Proven working experience as a loan officer
 Familiarity with computers and banking applications/software
 Solid understanding of direct/indirect lending products and practices
 Excellent communication and interpersonal skills
 Customer satisfaction orientation and sales competencies

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 Ability to work in a goal oriented environment
 BS degree in finance, economics or a related field
For Manager/Operations Head
Administer all lending activities for all consumer loan operations.
Collect all everyday operations and manage all membership service programs and
provide required training.
Determine and maintain all internal control on all loan processes.
Manage all collection area and design all appropriate methods and procedures and
maintain effectiveness of all loan programs and provide training to all service personnel.
Manage all loan cycle process and determine efficient work plan to achieve all business
objectives.
Administer all loan processes and assist to ensure optimal customer services and
participate in all improvement activities.
Manage all communication with company supervisors and department heads and
administer all loan information workflow and process all database applications.
Manage all interest rates and perform all quality interviews and analyze all financial
reports.

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Greet all borrowers efficiently over telephone and email and maintain all confidential
documents for all lending policies.
Develop and maintain professional relationships with all borrowers to answer all
questions and analyze all credit reports for qualification processes and document all
resources.
Evaluate all documents to maintain accuracy of all electronic files.
Maintain quality for same and analyze all loan information for loan originator and ensure
compliance to all deadlines.
Graduate of any business-related course Not more than 45 years of age With 2-3 years’
experience in microlending Must be Computer Literate
Job Analysis
Job analysis is a systematic process of collecting all information about the job for
preparing of job description and job specification meant to selection of employee,
satisfaction in job, and motivation etc.
Compensation and Benefits

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Under compensation benefits, FLEInc. Will comply to
The Labor Code of the Philippines, otherwise known as Presidential Decree No. 442.,
governs all employee-employer relations, their rights and obligations.
Payroll Salary Compensation and Benefits in the Philippines as provided under the
Labor Code of the Philippines and other relevant laws.
Orientation
Orientation were done whenever there is a new employee to be able to grasp and have a
knowledge on his/her work, policies and regulations of FLEInc.
Physical Working Condition
FlEInc. Will create a physical working area that is as comfortable as possible. Good
office furniture is an investment all employers should consider. We spend most of our
time in the office seated – it is thus important that the office chair has good ergonomics.
It is also important to create a sanitary work environment by installing air purifiers or
ultraviolet disinfectant systems, and ensuring regular aircon servicing and carpet
shampooing. The office is, after all, an enclosed area where germs could be spread easily.
These practices can aid in creating a healthier environment which in turn will result in
lesser sick leaves being taken.

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A conducive working environment is more than just ensuring a comfortable physical
space; it is also about creating the ‘heartware’. Aim to strengthen office ties not just
among employees, but between managers and employees.
This can be carried out in various ways, such as through team-building exercises and
monthly lunch get-togethers. Also, as more Millennials start entering the workforce, it is
imperative to ensure work-life balance for your employees. Flexible working hours, or
the chance to work remotely all contribute to making sure that there is a distinction
between work and personal time.
With these in mind, it is also your role as an employer or manager to maintain a good
working environment. To do so means proactively receiving and acting on feedback from
employees. Providing staff with a comfortable office is a win-win situation: morale is
kept high, and the organization in turn will be efficient.
Motivation
Companies should strive to create a great place for great people to do great work.
Money should not be the ONLY tool used to motivate people, because different things
motivate different people.

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1. Seek buy-in. Involve staff in determining and seeing “the big picture” and the goals
needed to achieve it. Remember, they are closest to the work and often can see things
more clearly. Having employees harness self-direction in pursuit of common goals is far
preferable to forcing people to meet goals they don’t understand or share.
2. Encourage contributions. If an employee can regularly contribute ideas, and
suggestions, it makes them feel important and gives meaning to their jobs. Give people
responsibility and they often rise to the challenge. Allow them to unleash their
imagination, ingenuity and creativity and everybody wins.
3. Recognize employees. Rewarding people for achievement is a far more effective than
punishing them for failure. There are plenty of simple but effective ways employers can
recognize hard work, such as emailing an appreciative note. Organize recognition
programs and events to honor accomplishments personally and publicly.
4. Nip negativity in the bud. Do not allow employees to talk down to one another and/or
drag each other through the mud. Likewise, make sure you don't do the same when other
employees are able to see it happen to a fellow co-worker. That's bad for morale and
destroys motivation.
5. Keep employees informed. When an employee feels he or she is not up to date with
what is occurring in the company or their department, it is a message to the employee that
says, “You are not important.” Keep information flowing to each employee; let them
know what the company is doing and the direction it is taking.

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6. Help fulfill career goals. If the employee wants to take on more responsibility or move
into a different department, investigate the possibilities and get back to them with
options. Giving workers opportunities to build the skills and make the connections they
need to get ahead in their careers will build loyalty and motivation.
7. Maintain workforce satisfaction. One way to generate sustained profits is to build a
work environment that attracts and keeps talented people who want to show up and
perform at a level of excellence. Focus on creating satisfied employees and they will
focus on satisfying you and your customers.
8. Provide training. Being part of a learning culture is an important motivator for an
employee. Training can help fill the gap between lack of skills and better productivity
after training needs are assessed. Appropriate training should be viewed as an investment
rather than a liability.
9. Give constant feedback. The days of quarterly or annual reviews being the sole form of
feedback are long gone. Employees want to receive constant, specific, and clearly defined
feedback from their supervisors. Positive feedback about accomplishments is essential to
motivate an employee.
10. Communicate often. Open communication is most employees' #1 priority. Find out
what interests them and what doesn't. Speaking with an employee frequently shows that
you care about them in more ways than simply wanting them to keep up with
productivity.

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Motivation requires a strategy tailored to each worker’s needs. These ideas can help you
know what can drive your employees to want to do a better job. If your focus is on the
bottom line and long-term growth of the organization, it’s important to focus on your
most important asset.
Training
Management and Leadership Style
Conflict of Interest
Payroll Advances/Loans
Overtime
Minimum wage is based on a work week of 40 hours or 8 hours per day. The daily 60-
minute mandatory lunch break is not included in the 8 hour work day and is not
compensated.

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Overtime pay rates vary depending on when the overtime work takes place: regular work
day, holiday, rest day, or night (between the hours of 10pm to 6am).
Overtime Rates:
– Regular work day: plus 25% of the hourly pay rate.
– Rest day, regular/special holiday: plus 30% of the hourly rate on said day.
13th Month Pay
Each year, a 13th month pay is given to all rank-and-file employees. By law, this benefit
must be paid before December 24th and is mandatory. Employees who have resigned or
have been severed from the company before the payment of the 13th month pay are still
entitled to it in proportion to the length of time they worked for during that year.
The 13th month pay must be at least 1/12th of the total basic salary of each employee
earned during that calendar year.
Asidefrombenefitsmandatedbylw,thecompanywillalsogiveayearlymedicineallowanceofP1
,500.00foreachemployees.
Graduated Income Tax Schedule

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BIR Income Tax Table (2018-2022)
BRACKE GROSS INCOME PER

INCOME TAX RATE
T YEAR
1 P250,000 and below 0%
2 Above P250,000 to P400,000 20% of the excess over P250,000
3 Above P400,000 to P800,000 P30,000 + 25% of the excess over
P400,000
4 Above P800,000 to P130,000 + 30% of the excess over
P2,000,000 P800,000
5 Above P2,000,000 to P490,000 + 32% of the excess over
P8,000,000 P2,000,000
6 Above P8,000,000 P2,410,000 + 35% of the excess over
P8,000,000
Attire and Bearing

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Theattireoftheemployeeswillbeprovidedbythecompany.Therewillbe3setsofuniform,collare
dshirtwiththelogoofFLEInc.,colorwillbegreen,blueandyellow.
Pay Day
Pay day will be every 15th and 30th day of the month.
Chapter 6: FINANCIAL ANALYSIS
Major Assumptions
The proponent will assume that the 201 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

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and the proponent will assume that 5borrowers 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
January2017. Other related matters will be based on the current trend such as utilities
(electricity & water expenses).
Investment Requirement
The study shows that in order to establish a lending company in Jacoba Street,
Brgy.Poblacion, Lingayen,Pangasinan. 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
Sources of Financing
The capital will be from the eleven private individuals, who were retired government
employees and 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.

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Projected Financial Statements
Projected Statement of Financial Position
Projected Statement of Financial Performance
Projected Statement of Cash Flows
Projected Statement of Stockholders Equity
Financial Analysis
Test of Profitability
Test of Liquidity
Test of Solvency
Chapter 7: Problem Identification, Issues and Concerns
Chapter 8: PESTLE and SWOT Analysis
SWOT Analysis of Fund Lending Essential Inc.

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Strenghts
- Offers a high rate to lenders (incorporators)
- Offers competitive rates to borrowers
- Customer friendly
- Insuring lenders in case of default
Weakness
- Lack of awareness
- Not fully regulated
- No collateral required form borrowers, increases risk of default
- Can cater to only smaller amounts
Opportunities
- Development of superior screening of borrowers
Threats
- Risk of run flatforms
- Collapsingm reducing confidence in whole industry
- Competetion bank

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Chapter 9: Strategic Plan
Chapter 10: Recommendation
Chapter 11: Conclusion

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Appendices
Batas Pambansa Blg 86: THE CORPORATION CODE OF THE PHILIPPINES
Bibliography
https://www.thebalance.com/

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THE COMPANY PROFILE

refreshing and satisfying meals and teatimes to the target customers.

Figure 1. The Logo

Business Policy Paper Page 1

Table 1 - Logo Interpretation

Figure / Object / Color Meaning

highly satisfying, hence, the business caters both consumer psychology.

meals which details and are further elaborated below:

Business Policy Paper Page 2

served in three different sizes.

Flavors Sizes Topping

 Flavorful Chicken Wings

Fried chicken wings dipped into variety of sauces! Whether you go

buttery, hot sauce route or the sticky fruit-glazed and honey-glazed or

the various sauces and crust to the chicken wings:

Chicken Wings Sauce Description

Business Policy Paper Page 3

1. Sriracha A fun twist of buffalo wings, blend

2. Purpose of the Service

financial obligations (De Luzon, 2013).

Business Policy Paper Page 4

of at least three (3) percent per month.

monthly budget plan.

borrower dies, thus maintaining a normal way of living free of debt.

Fund Lending Essential Inc. will be established as corporation as per requirement

the Establishment, Operation and Regulation of Lending Companies.

Business Policy Paper Page 5

cut overhead costs.

Figure 2 - Vicinity Map

Lingayen is a 1st class Municipality in the province of Pangasinan and is

politically subdivided into 32 barangays including Barangay Poblacion, the central

barangay in the Municipality and is where the business is located.

In terms of educational institutions, Municipality of Lingayen has a number of

possibly be the FLEInc.’s main target market.

Business Policy Paper Page 6

 Pangasinan State University - Both Lingayen Campus and Open University

 The Adelphi College

 St. Columban's College

districts: I, II,and III.

Figure 3.1 - Building Perspective

Jacoba Street, Poblacion, Lingayen, Pangasinan

Figure 3.2 - Floor Plan

Business Policy Paper Page 7

Corporation Code of the Philippines, Fund Lending Essential Incorporated is a

ownerships are represented by shares of stock.

elected by the shareholders to oversee the corporation's management. The board of

Below is a figure showing the organizational structure of Fund Lending Essential

Figure 4 - Organizational Structure

Business Policy Paper Page 8

G. Strategic Analysis of the Company and Its Business

Fund Lending Essential Incorporated is committed to serve the community

through helping them meet their financial needs

To be the leading small scale financial service in Lingayen.

GOALS AND OBJECTIVES

 To contribute welfare to the community and promote social responsibility;

 To gain trust and confidence from future investors;