Laia Alora Credit Policies and Guidelines Document

Effective Date: September 2023

I. Introduction
A. Purpose of the Document
This document serves as a comprehensive guide outlining the credit policies and
guidelines established by Laia Alora. Its primary purpose is to provide clear and
transparent direction for all credit-related activities within the organization. By defining
the principles and procedures governing credit extension, management, and
evaluation, this document aims to achieve the following objectives:
 Consistency
Ensure consistent and fair treatment of all credit applicants and
customers, promoting transparency and equity in credit transactions.
 Risk Management
Mitigate credit risk by setting clear criteria for evaluating
creditworthiness, thereby safeguarding the financial stability of the
business.
 Customer Understanding
Educate both internal stakeholders and external customers on the credit
processes, terms, and conditions, fostering a better understanding of the
credit offerings.
 Legal Compliance
Align the credit practices with applicable laws and regulations, reducing
legal risks and liabilities.
B. Scope of the Document
This document encompasses a wide range of credit-related aspects, including but not
limited to:
 Customer Selection Criteria
The establishment of clear criteria based on creditworthiness
evaluations for selecting customers eligible for credit services.
 Credit Approval Process
A detailed description of the step-by-step process for approving or
denying credit applications.
 Credit Limits and Terms
Definitions of credit limits, payment terms, and interest rates, ensuring
transparency in credit agreements.
 Credit Monitoring and Management
 Procedures for ongoing credit monitoring, limit adjustments, and
addressing delinquent accounts.
 Collections and Default Remedies
Strategies for managing collections and legal action in case of default,
while upholding ethical practices.
 Billing and Statements
Information regarding billing cycles, statements of account, and payment
options for credit customers.
 Record Keeping
Guidelines for maintaining accurate and secure records of credit
applications, approvals, and account activities.
C. Legal Compliance
Laia Alora is committed to conducting its credit operations in strict compliance with all
relevant local and national laws and regulations. Laia Alora recognize the importance
of adhering to legal requirements and standards governing the provision of credit
services, data protection, and consumer rights. The credit policies and guidelines are
designed with due consideration for legal obligations, and continuously update and
adapt them to remain in full compliance with any changes in the regulatory
landscape. By adhering to these policies and guidelines, Laia Alora aim to uphold the
highest standards of professionalism, transparency, and ethical conduct in all credit-
related activities. This document should be considered the foundation upon which all
credit operations within Laia Alora are built.

II. Credit Application Process

The credit application process at Laia Alora is designed to be transparent, efficient,
and aligned with the credit policies. This section outlines the step-by-step procedure
that customers must follow when applying for credit with Laia Alora.
A. Eligibility Criteria
Before submitting a credit application, applicants should review and ensure they meet
the following eligibility criteria:
 Target Market
While the credit services are accessible to a broad customer base, it is
important for applicants to understand the specific target market for the
credit offerings, which may vary based on the type of credit product.
 Age Requirements
Applicants must be at least 18 years of age or older to apply for credit
with Laia Alora.
  Identification Verification
Valid identification, such as a government-issued ID or student ID, is
required for identity verification during the application process.
B. Application Submission
Applicants can initiate the credit application process by completing and submitting the
official credit application form. This form can be obtained from google form and
should be filled out accurately and completely.
C. Credit Evaluation
Upon receiving a completed credit application, Laia Alora initiates the credit
evaluation process. This process involves a thorough assessment of the applicant's
creditworthiness, including:
 Credit Checks
o Laia Alora’s credit team conducts credit checks to assess an
applicant's credit history. This includes reviewing any previous loans,
credit cards, or financial obligations to evaluate their payment history
and outstanding debts.
 References
o Laia Alora may contact references provided by the applicant to verify
their financial responsibility and character.
D. Approval and Disapproval Criteria
Based on the results of the credit evaluation, Laia Alora employs specific criteria to
determine whether to approve or deny a credit application. The criteria include, but
are not limited to:
 Meeting the eligibility criteria mentioned in section A.
 Demonstrating a positive credit history with no significant delinquencies
or defaults.
 Providing satisfactory references that vouch for the applicant's financial
responsibility and character.
E. Communication of Approval/Disapproval
Once the credit evaluation is complete, Laia Alora communicates the credit decision
to the applicant through the following means:
 Approval
If the credit application is approved, Laia Alora will notify the applicant of the
approved credit limit, payment terms, and any relevant terms and conditions. The
 customer will be provided with instructions on how to access and use their credit
account.
 Disapproval
In the event of a credit application denial, Laia Alora will promptly communicate
the denial to the applicant. The denial notification will include a clear explanation
of the reason(s) for the denial. Applicants have the right to seek clarification or
appeal the decision if they believe there has been an error.

III. Credit Terms and Conditions

To ensure clarity and transparency in credit transactions, Laia Alora has established
the following Credit Terms and Conditions that apply to all credit accounts and credit
products offered by them.
A. Credit Limits
 Credit limits for each credit account will be determined by Laia Alora based on
the applicant's creditworthiness, income, and other relevant factors. Credit
limits may vary between different credit products.
 Customers are expected to adhere to their assigned credit limits. Exceeding
the assigned credit limit may result in account suspension or additional fees.
B. Payment Terms
 Due Date
o Payments are due on the 4 TH Sunday of each month.
o Customers are responsible for ensuring that payments are made by
the specified due date to avoid late payment fees and potential
adverse credit reporting.
 Late Payment Fees
o A late payment fee of ₱100 will be charged for payments received
after the due date.
o Late payment fees will be assessed in accordance with applicable
laws and regulations.
C. Interest Rates
 Interest rates on outstanding balances will be determined based on the specific
credit product and the prevailing market conditions at the time of credit
approval.
 Interest rates, where applicable, will be clearly communicated to customers in
their credit agreements and statements of account.
D. Credit Reporting
  Laia Alora may report customer credit information to credit bureaus and
agencies in accordance with applicable laws and regulations.
 Timely payments can have a positive impact on a customer's credit history,
while late payments or defaults may have adverse effects.
E. Changes to Terms and Conditions
Laia Alora reserves the right to modify these Credit Terms and Conditions as deemed
necessary, with proper notice to customers. Notice of changes will be provided in
accordance with applicable laws and regulations.
F. Dispute Resolution
Customers who have concerns or disputes regarding their credit account or the
application of these Credit Terms and Conditions are encouraged to contact
Customer Service for assistance and resolution.
G. Termination of Credit Account
Laia Alora reserves the right to terminate or suspend a customer's credit account in
cases of repeated late payments, non-compliance with these terms and conditions, or
other material breaches of the credit agreement. By utilizing the credit products and
services, customers acknowledge their understanding and agreement to these Credit
Terms and Conditions. It is essential for all customers to carefully review and adhere
to these terms to ensure a positive credit experience.

IV. Credit Monitoring and Management

To ensure responsible credit management and protect the financial stability of Laia
Alora, we have established the following processes and guidelines for credit
monitoring and management.
A. Regular Credit Reviews
 Laia Alora conducts regular credit reviews of customer accounts to assess
creditworthiness and adherence to credit terms and conditions.
 Credit reviews may result in adjustments to credit limits, changes in payment
terms, or other actions as deemed necessary.
B. Credit Limit Adjustments
 Credit limit adjustments may occur based on the customer's credit
performance, financial situation, and payment history.
 Customers will be notified in advance of any credit limit adjustments.
C. Suspension or Termination of Credit
  Laia Alora reserves the right to suspend or terminate credit accounts for
customers who repeatedly default on payments, breach credit terms and
conditions, or exhibit financial instability.
 Customers will receive notice of suspension or termination in accordance with
applicable laws and regulations.
D. Collections Process
 Initial Notices
o In cases of late or missed payments, Laia Alora will send initial notices
to remind customers of overdue payments.
o These notices will include details about the outstanding amount, due
date, and actions required to bring the account up to date.
E. Default and Remedies
 Legal Action
o In cases of prolonged non-payment or significant default, Laia Alora may
pursue legal action to recover outstanding debts.
o Legal action may include filing a lawsuit or obtaining a judgment against
the customer.
F. Customer Communication
 Open Communication
o Laia Alora encourages customers facing financial difficulties to
communicate openly with us. We are committed to working with
customers to find mutually agreeable solutions.
 Notifications
o Customers will receive timely notifications regarding credit reviews,
changes in credit terms, account suspension or termination, and any
legal action taken.

V. Billing and Statements

At Laia Alora, we are committed to providing clear and transparent billing and
statements to our credit customers. This section outlines Laia Alora’s billing and
statement processes.
A. Monthly Billing
 Customers will receive a monthly billing statement outlining their credit
account activity, including details of purchases, payments, fees, and
interest charges, if applicable.
  Billing statements will be sent to the customer's designated billing
address or made accessible electronically through Laia Alora’s secure
online portal.
B. Statement of Account
 The Statement of Account provides a comprehensive summary of the
customer's credit account for the billing period.
 It includes the following information:
o Opening and closing balances
o Detailed transaction history
o Due date for the current billing cycle
o Minimum payment due
o Total outstanding balance
o Interest charges (if applicable)
 Customers are responsible for reviewing their statements for accuracy and
reporting any discrepancies promptly.
C. Payment Options
 Laia Alora offers two payment options to accommodate customer preferences:
o Online payments
o In-person payments at store location
 Customers can choose the payment method that best suits their needs, but it is
their responsibility to ensure that payments are made by the due date.
D. Billing Disputes
 In the event of a billing dispute, customers are encouraged to contact
Customer Service as soon as possible to resolve the issue.
 Customers should provide details of the dispute, including transaction dates,
amounts, and any supporting documentation, to expedite the resolution
process.
 Laia Alora will investigate billing disputes promptly and provide a response
within a reasonable time frame in accordance with applicable laws and
regulations.

VI. Customer Responsibilities

To ensure a smooth and mutually beneficial credit relationship, customers of Laia
Alora are expected to adhere to the following responsibilities:
A. Timely Payments
 Timely Payments
 o Customers are responsible for making payments on their credit accounts by
the due date specified in their monthly billing statements. Failure to make
payments on time may result in late payment fees, interest charges, and
potential adverse credit reporting.
 Payment Amount
o Customers should pay at least the minimum payment amount specified on
their billing statements to avoid penalties.
B. Reporting Changes in Contact Information
 Contact Information Updates
o Customers are required to promptly inform Laia Alora of any changes to
their contact information, including but not limited to mailing addresses,
email addresses, and phone numbers.
 Communication
o Timely updates to contact information ensure that customers receive
important notifications, billing statements, and communication related to
their credit accounts.
C. Compliance with Terms and Conditions
 Understanding and Compliance
o Customers must thoroughly review and understand the credit terms and
conditions associated with their credit account. This includes the terms
related to credit limits, payment due dates, interest rates, and any other
applicable terms and fees.
 Adherence
o Customers are expected to comply with all credit terms and conditions and
to use their credit responsibly and ethically.
 Dispute Resolution
o In the event of any concerns, billing disputes, or questions related to the
credit account or terms and conditions, customers are encouraged to
contact Customer Service for assistance and resolution.

VII. Contact Information

At Laia Alora, we are committed to providing excellent customer service and support.
Should customers have any questions, concerns, or need assistance related to their
credit accounts, they can contact us through the following channels:
A. Customer Support
Our dedicated Customer Support team is available to assist with general inquiries,
account-related questions, and requests for assistance. You can reach us through:
Phone: 09---------
Email: laiaalora@-----.com
In-Person: Visit our store location during business hours.
B. Reporting Credit Issues
If customers encounter credit issues, billing disputes, or suspect unauthorized
account activity, they should promptly report them to Laia Alora to seek resolution.
Here's how to report credit issues:
Phone: 09---------
Email: laiaalora@-----.com

VIII. Review and Amendment

At Laia Alora, we are committed to maintaining the relevance and effectiveness of our
Credit Policies and Guidelines. To achieve this, we have established processes for
periodic review and amendment.
A. Periodic Review
 Regular Assessment
o Laia Alora conducts periodic reviews of our Credit Policies and Guidelines
to ensure they remain up-to-date, compliant with applicable laws and
regulations, and aligned with evolving business practices and customer
needs.
 Review Frequency
o These reviews are typically conducted on a monthly basis, with additional
reviews triggered by significant regulatory changes or other relevant
developments.
B. Amendment Process
 Identification of Amendments
o During the review process, if any updates or amendments to the Credit
Policies and Guidelines are deemed necessary, they will be identified.
 Proposed Amendments
o Proposed amendments will be drafted and reviewed internally to ensure
accuracy and alignment with our objectives.
 Notification
o If amendments are proposed, affected customers will be notified of the
proposed changes in accordance with applicable laws and regulations.
Notification methods may include written correspondence, or email.
  Customer Feedback
o Customers are encouraged to provide feedback on proposed amendments,
and Laia Alora will consider this feedback in the decision-making process.
 Amendment Approval
o After considering customer feedback and conducting a thorough internal
review, Laia Alora will make a final determination regarding the proposed
amendments.
 Amendment Implementation
o Approved amendments will be implemented within a reasonable time frame
and communicated to affected customers, along with a summary of the
changes.
IX. Conclusion
In conclusion, Laia Alora is committed to providing responsible and accessible credit
services to our valued customers. These Credit Policies and Guidelines are designed
to ensure clarity, fairness, and transparency in our credit transactions. We believe
that by adhering to these policies, both Laia Alora and our customers can enjoy a
mutually beneficial credit relationship. We encourage all customers to carefully review
these policies and guidelines, ask questions when needed, and be proactive in
managing their credit accounts. Our dedicated Customer Support team is readily
available to assist with inquiries and concerns. At Laia Alora, we understand that
responsible credit management is a shared responsibility. By working together, we
can maintain a positive and productive credit experience that serves the financial
well-being of our customers and the success of our business.

Thank you for choosing Laia Alora for your credit needs. We look forward to serving
you and continuing to provide excellent credit services. Should you have any
questions or require further assistance, please do not hesitate to reach out to our
Customer Support team.
Customer Selection Criteria
1. Annual Revenue
 Customers with a stable and sufficient annual income are preferred.
 Minimum annual income requirement: ₱150,000.
2. Profitability
 Customers should demonstrate financial stability and the ability to
manage expenses within their income.
 A track record of responsible financial management is a plus.
3. Cash Flow
 Customers should maintain positive cash flow, ensuring they can cover
essential expenses and potential credit payments.
 A stable cash flow is preferred, indicating the ability to repay debts.
4. Credit History
 Customers with a history of responsible credit behavior are preferred.
 This includes timely payments on previous loans and a strong payment
history.
5. Outstanding Debts
 Customers with manageable outstanding debts are preferred.
 High outstanding debts may indicate a higher risk.
6. Payment History
 Customers who have never missed a payment and consistently meet
their financial obligations are preferred.
 A strong payment history is a strong indicator of creditworthiness.
7. Personal Reputation
 Customers with a reputation for responsibility, dedication, and
commitment are preferred.
 Positive personal and professional references can enhance their
creditworthiness.
Summary of Credit Evaluation for each potential customer
Nicolei Osano
Annual Revenue: ₱216,000
Profitability: Stable
Cash Flow: Modest
Credit History: Good
Outstanding Debts: ₱16,000
Payment History: Strong
Personal Reputation: Strong
Andrei Cua
Annual Revenue: ₱250,000
Profitability: Stable
Cash Flow: Stable
Credit History: Good
Outstanding Debts: ₱10,957
Payment History: Strong
Personal Reputation: Strong
Patrish Ferwelo
Annual Revenue: ₱240,000
Profitability: Stable
Cash Flow: Strong
Credit History: Good
Outstanding Debts: ₱6,000
Payment History: Strong
Personal Reputation: Strong
Nash M.
Annual Revenue: ₱285,000
Profitability: Strong
Cash Flow: Positive
Credit History: Good
Outstanding Debts: ₱714.10
Payment History: Strong
Personal Reputation: Reliable
Lyn Vinluan
Annual Revenue: ₱200,000
Profitability: Stable
Cash Flow: Stable
Credit History: Good
Outstanding Debts: ₱4,000
Payment History: Strong
Personal Reputation: Responsible
Jasmin Lungay
Annual Revenue: ₱288,000 + profit from online selling
Profitability: Stable
Cash Flow: Stable
Credit History: Good
Outstanding Debts: None
Payment History: Strong
Personal Reputation: Responsible
Alezandra Zapata
Annual Revenue: ₱172,800
Profitability: Stable
Cash Flow: Stable
Credit History: Good
Outstanding Debts: ₱4,000
Payment History: Strong
Personal Reputation: Organized and Responsible

Sample Credit Application Form

WAIT LANG MII

Sample Credit Approval Documentation
Laia Alora Credit Approval Documentation
Effective Date: September 2023
Introduction
This document outlines the step-by-step process for approving or denying credit
applications at Laia Alora. It is designed to ensure consistency and fairness in the
credit approval process, aligning with credit policies and guidelines.
Credit Approval Process Overview
The credit approval process at Laia Alora involves a thorough evaluation of each
credit application. Laia Alora consider various criteria and factors to determine
creditworthiness.
Criteria and Factors for Credit Approval
A. Financial Criteria
Annual Income: Minimum income requirement: ₱150,000
Profitability: Stable financial situation
Cash Flow: Positive cash flow to cover essential expenses and potential credit
payments
B. Credit History
A positive credit history with a record of responsible credit behavior
C. Payment History
Strong payment history, including timely payments on previous loans and obligations
D. Personal Reputation
Positive character references and reputation for responsibility, dedication, and
commitment
E. References (if applicable)
Satisfactory references who vouch for the applicant's financial responsibility and
character
Credit Approval Steps
1. Application Submission
Customers submit credit applications to gmail.
2. Initial Screening
Applications are reviewed for completeness and accuracy.
3. Credit Evaluation
Applications meeting initial screening criteria proceed to credit evaluation.
4. Decision Making
The Credit Committee evaluates applications based on the established criteria and
factors. A decision is made to approve, deny, or request additional information.
5. Notification
Applicants are promptly notified of the credit decision, whether approved or denied.
If additional information is required, applicants are informed of the next steps.

Credit Denial
 If an application is denied, Laia Alora will provide a clear explanation of the
reason(s) for denial.
 Applicants have the right to request further clarification or appeal the decision.
Monitoring and Review
 Laia Alora periodically reviews customer credit accounts to assess ongoing
creditworthiness.
 Credit limits and terms may be adjusted based on changing circumstances.
Record Keeping
 Laia Alora maintains records of all credit applications, approvals, denials, and
relevant documentation.
 Records are kept securely and in compliance with data protection regulations.
Conclusion
This Credit Approval Documentation serves as a guideline for Laia Alora’s credit
approval process. It is essential to adhere credit policies and guidelines to maintain
fairness and consistency in credit transactions.
For any questions or further assistance, please contact Laia Alora’s owner: Jardine
Reine Quiamzon or Philip Dave Magsanoc.