The main idea of the project is to further develop a winning company for small consumer loans without property coverage for short periods with high interest rates throughout the entire country. We plan opening 35 offices for 4 years in all areas of the country. The company needs funds to open 3 new offices and to expand its portfolio.
The products offered by the company are small consumer loans from $200 to $1,000. Customers are served at home saving a lot of time and additional costs. Everything is transparent without hidden fees and commissions. Loan approval and money taking is granted within 24 hours. The repayment amount is equal for every period, different periods being optional - one week, 10 days or one month. We help customers to select the most suitable and convenient option for them.
Clients of the company are people with medium and low incomes. These are people that are not served from banks but need financial services, people who already have loans from banks but they need funds for repayment of incidental expenses or other reasons. At the time being there’s no other company in the country than ours that offer such loans and service.
Here are our figures for one year:
- 3000 outstanding loans;
- 1650 active customers;
- 500 clients with more than one loan:
To attract new customers we will:
- Increase the range of products offered;
- Supply transparent and accurate service leading to comfort and convenience of customer;
- Actively engage in promotion;
- Offer bonuses for correct customers;
The significant numbers of customers who use more than one of our services proves that we know how to create comfort and convenience to our clients.
Existing customers are to maintain with:
- High quality services;
- Better conditions for use of products;
- VIP opportunities for customers with more than 3 loans.
Considering that the majority of our clients use public transportation we are focusing advertisement on it. Another channel for advertising that the company will use is distribution of stickers and flyers.
The project is running successfully for more than a year. Till the end of 2012 we plan to open 2 more offices, give out minimum 2500 loans and increase loan portfolio minimum twice.
Funds needed for expansion are 1000000EUR. We can propose many ways for payback up to 5 years with ROI of 25%.
Competitors are several banks and pawn brokerage. Banks do not devote the necessary attention to their similar products. Their service takes very long time and puts additional requirements for the work contract of the customer such as salary card, clean credit file etc. Pawn brokerage works only with pledge of gold, movable or immovable property.
Our company - ''Mo money credit'' - is much more flexible in making decisions. The company always thinks about how to provide comfort for the customers. We give grace period without any penalty under certain conditions such as illness, temporary loss of work and other. Customers that seeking comfort and speed in service. They trust us and we are proud to say that we have large numbers of customers who have taken and returned credits more than once.
Our business model is based on proximity with customers from the opening of the credit to its closure and the short term of loan. Proximity with our customers allows us to track very well for the changes occurred in their life. This allows us to properly assess the borrower and reduce risk. Short term loan allow us rapid response to changes in the social and economic conditions.
In developing countries the need of small loans for covering the gaps in family budgets steadily increased. This involves forming a pretty broad market segment which offers opportunity to getting good profits. Since there is no real competitor with similar model and with regard to the socio economic situation in the current moment, the possibility for a large market share of 35%-40% over 5 years is completely realizable.
The project is running successfully for more than year. Till the end of 2012 we plan to open 2 or 3 offices, give minimum 2500 loans and increase our loan portfolio to larger size funding.
In case of debt investment the loan needed is minimum 650000EUR. We are offering an interest rate of 19% and a payback period of 7 years.
In case of equity investment we can offer up to 50% of the company’s shares with ROI=25%.
We prefer to have a silent investor but would not reject a hands-on investor.
We want to take investments monthly by 100000EUR.