market expansion training september 12-13, 2011 rbap building, intramuros, manila micro pinoy...

Market Expansion TrainingSeptember 12-13, 2011

RBAP Building, Intramuros, Manila

Micro Pinoy Presentation

A. Assumptions

B. Results

Micro Pinoy Presentation of Assumptions

1. LOANSa. Loan Release - Average initial loan size release is

P 6 K and number of loan releases from 50 to 120 accounts monthly, totaling to 2,220 for 2 years.

b. Client Retention Rate – 90 %

c. Loan Loss Reserve – 2 %

d. Collection Rate - 98 %e. Interest on Loans – 36 %

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Micro Pinoy Presentation of Assumptions

1. LOANS – continuation…

f. Service Fee – 3 % deducted from loan proceeds

g. Penalty on Missed Payment – 1 % per day

h. Credit Insurance - 1 % deducted from loan proceeds

i. Other Fees on Loans - 2 % deducted from loan proceeds

j. Variable Expenses – Transpo P 1,500, Supplies 100/loan

k. Fixed Expenses – Communication P 2 K, Rent P 10 K

l. Gross Receipts Tax – 5 % of Income 3

Micro Pinoy Presentation of Assumptions

2. MANPOWERa. Workload Indicator per Account Officer – 150 maximum case loan per AO

b. Position and Salaries – 4 personnel to man the MBO1. Account Officer 2 – P 8 K each2. Cashier/Teller – P 7.5 K3. Microfinance Supervisor – P 12.5 K

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Micro Pinoy Presentation of Assumptions3. SAVINGS

a. Compulsory Savings – 1.5 % of loan amount deducted from the loan proceeds.b. Voluntary Savings - P 750 average savings balance per saver with number of new voluntary savers as 80 % of the number of the compulsory savings c. Interest on Deposits - Compulsory 1 %, Voluntary 2 % d. Reserve Assets - Cash in vault 50 % e. Cash in Banks – average interest rate p.a. 2 %

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Micro Pinoy Presentation of Assumptions

4. FIXED ASSETS (Non-grant)a. Number of Units Acquired/ Cost and Useful Life - Description / Number Amount/Item Useful Life1. Vault (1) P 50 K 5 yrs.2. Computer (1) 25 K 3 yrs.3. Table (1) 5 K 5 yrs. 4. Chairs (4) 1.25 K 5 yrs.5. Filing Cabinet (1) 5 K 5 yrs. 6. Motorcycles (2) 35 K 5 yrs.

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Micro Pinoy Presentation of Assumptions

5. CASH FLOWSBorrowings – P 2,510,000 borrowings from the branch from Month 1 to Month 14 based on staggered release and payable for 24 months from released date at 3 % p.a. interest.

NO NEED FOR ANY INPUTS6. INCOME STATEMENTS7. BALANCE SHEETS8. RATIOS

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Micro Pinoy Presentation of Results based on the Assumptions above

A. Break Even in the following, In terms of:

1. Months – 7.5 months 2. Number of Active Borrower – 510 3. Loan Outstanding in Pesos – P 1.8 M4. Loan Disbursed in Number of accounts - 610 B. Positive Cumulative Net Income in 14 months

amounting to P 60 K.

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Micro Pinoy Presentation of Results based on the

Assumptions above …con’t.C. In the end of year 2 - Cumulative Net Income for yr 2

reached to P 1.4 M

D. Ratios1. Cumulative Drop Out rate – 12 %2. # of Active Borrower per Account Officer – 1513. Reserve ratio – 2 %4. Savings to loan ratio – 156 %5. Return of Assets – 20 %

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