BUSINESS PROPOSAL

(BY: Group 1)
Name of Students: Mia Retiro, Jaybien Mampuste, Kathlyn Jambalos,
John Amiel Peregrin

Business Primary Information

Name:

ASSURANCE COMPANY

Logo

Introduction:

Assurance Company, your trusted partner for comprehensive financial solutions in the
Philippines. We offer a diverse range of loan products tailored to meet your personal
and business needs. Our streamlined loan application process ensures simplicity and
efficiency, requiring only essential documentation such as income verification and
identification. With a dedicated team committed to transparency and compliance, we
provide peace of mind as you navigate your financial journey.

Kinds of loan offered

1. Personal loans- At Assurance Company, our personal loans offer a range of
features designed to meet your diverse financial needs:

Versatile Financing: Our personal loans provide you with the flexibility to use the
funds for a wide array of purposes, from covering moving expenses to managing
unexpected emergencies.
Immediate Access to Funds: With our personal loans, you can access a lump sum
amount upfront, providing you with immediate financial support when you need it
most.
No Collateral Required: Rest assured, our personal loans do not require any
collateral, ensuring accessibility for a broader spectrum of borrowers.
Predictable Payments: Benefit from fixed interest rates, ensuring consistent and
predictable monthly payments throughout the loan term.
Tailored Loan Terms: Enjoy the freedom to customize your loan according to your
financial situation, including choosing the loan amount and repayment period that best
suits your needs.
Efficient Approval Process: Our streamlined approval process ensures quick access
to funds, enabling you to address your financial requirements promptly.
Multiple Lending Options: We offer personal loans through various lending channels,
providing you with a range of options to explore and select the terms that align with
your preferences.
Consideration for Credit History: While we consider your credit score and financial
history, we also provide options for individuals with varying credit backgrounds.
Structured Repayment: Repay your personal loan through fixed monthly payments,
facilitating easy budgeting and financial planning.
Flexibility for Early Repayment: We offer options for early repayment without
penalties, allowing you to save on interest by settling your loan ahead of schedule.
Requirements to avail personal loans:

 Valid ID(Philippine National ID, voters ID, etc )

 The age requirement to avail personal loan is at least 21 years old and above.
 Consider the minimum monthly income is around 10,000 and above.
 Salary Slip or Proof of Salary and Billing.
 Credit score and history
 Application form

2 . Business loans – At Assurance Company, our business loans are designed to offer
comprehensive support for a variety of business needs:

Diverse Funding Options: Our business loans provide flexible financing solutions to
support various business initiatives, including expansion, working capital, equipment
procurement, and inventory management.

Tailored Financing: We understand that every business is unique, which is why our
business loans are customizable to meet the specific financial requirements of your
enterprise.

Strategic Growth Support: Whether you're looking to expand your operations,

invest in new equipment, or optimize your inventory management, our business loans
provide the necessary financial backing to fuel your growth ambitions.

Quick Access to Capital: With our streamlined application and approval process,
you can access the funds you need swiftly, allowing you to capitalize on emerging
opportunities and address pressing business needs without delay.

Competitive Terms: Benefit from competitive interest rates and flexible repayment
terms tailored to your business's financial capabilities and cash flow requirements.
No Collateral Requirement: Rest assured, our business loans do not always
necessitate collateral, providing accessible financing options for businesses of all
sizes and stages of development.

Expert Financial Guidance: Our experienced team of financial advisors is here to

guide you through the loan application process, offering insights and
recommendations to help you make informed financing decisions for your business.

Support for Growth Initiatives: Whether you're a startup seeking capital infusion or
an established enterprise looking to expand your market reach, our business loans are
designed to support your growth initiatives and propel your business forward.

Responsive Customer Service: Count on our dedicated customer service team to

provide personalized assistance and support throughout the loan application and
repayment process, ensuring a seamless and hassle-free experience.

Commitment to Success: At Assurance Company, we're committed to your

business's success. Our business loans are more than just financial transactions –
they're partnerships aimed at helping you achieve your business goals and realize your
vision for the future.

Requirements to avail business loans :

 Valid ID
 Application form
 Credit score and history
 Business age is at least two(2) years in business
 Annual revenue requires is ranging from 500,000 to 1,000,000 or more.
 Proof of Business Income.
 Collateral

3 . Emergency loans – type of short-term financing designed to provide immediate

financial assistance during unexpected or urgent situations. These loans are typically
meant to cover urgent expenses or financial emergencies when individuals or
businesses need quick access to funds.

Requirements to avail emergency loan :

 Valid ID
 Credit score and history
 Age requirement (at least 18 years old and above)
 Monthly income required is 10,000 and above.
 Salary Slip or Proof of Income and billings.
 Application form

AMOUNT OF LOANS THAT CAN BE AVAILED

Kinds of Loan Loan Amount Interest Rate APR

Personal Loans Up to P100,000 4% to 8% APR

Business Loans Up to P300,000 10% to 18% APR

Emergency Loans Up to P100,000 5% to 8% APR

 INTEREST RATES ON LOANS
Personal loan
For example, here’s how to compute loan interest if you’ll get a personal loan with the
following features:

Loan amount: ₱100,000

Loan term: 24 months
Interest rate: 8% per annum
Service charge: ₱2,000
(2%x100,000)= 2,000
Interest on a personal loan: (0.08÷ 24) x 100,000+2,000 = ₱2,333.33

This means that for the first month of repaying your loan, ₱4,333.33 is the amount of
interest you’ll be paying.

Monthly Service Total Monthly Remaining

Month Monthly Interest Charge Payment Balance
1 ₱2,333.33 ₱2,000 ₱4,333.33 ₱97,666.67
2 ₱1,916.67 ₱2,000 ₱3,916.67 ₱94,750.00
3 ₱1,500.00 ₱2,000 ₱3,500.00 ₱91,250.00
4 ₱1,083.33 ₱2,000 ₱3,083.33 ₱87,166.67
5 ₱666.67 ₱2,000 ₱2,666.67 ₱82,500.00
6 ₱250.00 ₱2,000 ₱2,250.00 ₱77,250.00
7 ₱666.67 ₱2,000 ₱2,666.67 ₱71,333.33
8 ₱1,083.33 ₱2,000 ₱3,083.33 ₱64,750.00
9 ₱1,500.00 ₱2,000 ₱3,500.00 ₱57,500.00
10 ₱1,916.67 ₱2,000 ₱3,916.67 ₱49,583.33
11 ₱2,333.33 ₱2,000 ₱4,333.33 ₱40,999.67
12 ₱2,750.00 ₱2,000 ₱4,750.00 ₱31,749.67
13 ₱3,166.67 ₱2,000 ₱5,166.67 ₱21,833.00
14 ₱3,583.33 ₱2,000 ₱5,583.33 ₱11,249.67
15 ₱4,000.00 ₱2,000 ₱6,000.00 ₱0.00

Emergency loan
Loan amount: ₱50,000
Loan terms: 2 years
Amount of interest: ₱10,000
(50,000 x 10% x 2 years)
Service charge: ₱1,000
(2%x50,000)= 1,000
Total amount: ₱70,000
(50,000 + 10,000+1,000)
Monthly Amortization: ₱2,916.66
(70,000/24 months)

Month Monthly Payment Remaining Balance

1 ₱2,916.66 ₱67,083.34
2 ₱2,916.66 ₱64,166.68
3 ₱2,916.66 ₱61,250.02
4 ₱2,916.66 ₱58,333.36
5 ₱2,916.66 ₱55,416.70
6 ₱2,916.66 ₱52,500.04
7 ₱2,916.66 ₱49,583.38
8 ₱2,916.66 ₱46,666.72
9 ₱2,916.66 ₱43,750.06
10 ₱2,916.66 ₱40,833.40
11 ₱2,916.66 ₱37,916.74
12 ₱2,916.66 ₱35,000.08
13 ₱2,916.66 ₱32,083.42
14 ₱2,916.66 ₱29,166.76
15 ₱2,916.66 ₱26,250.10
16 ₱2,916.66 ₱23,333.44
17 ₱2,916.66 ₱20,416.78
18 ₱2,916.66 ₱17,500.12
19 ₱2,916.66 ₱14,583.46
20 ₱2,916.66 ₱11,666.80
21 ₱2,916.66 ₱8,750.14
22 ₱2,916.66 ₱5,833.48
23 ₱2,916.66 ₱2,916.82
24 ₱2,916.66 ₱0.00

SURCHARGES/PENALTIES
Late payment penalties of 5% of the overdue amount may apply, with a grace period
of seven days after the due date. For example, if the monthly installment of PHP
10,000 is not settled within the grace period, a penalty of PHP 500 will be imposed.
 COLLATERAL
Collateral is required for higher loan amounts. Acceptable collateral includes real
estate, vehicles, or other valuable assets.

1. Real Estate: Property owned by the proprietor, such as land, buildings, or homes,
can be used as collateral for a loan. This is one of the most common forms of
collateral, especially for larger loans.

2. Equipment: Machinery, vehicles, tools, or other business equipment owned by the

proprietor can be pledged as collateral. This is particularly relevant for businesses that
rely on specialized equipment for operations.

3. Personal Assets: In a sole proprietorship, the proprietor's personal assets may be

used as collateral for business loans. This can include savings accounts, investments,
vehicles, or valuable belongings.

4. Cash Savings: Cash savings held by the proprietor or the business can be used as
collateral for loans. Some lenders may accept cash deposits or certificates of deposit
(CDs) as collateral to secure financing

MANNER OF PAYMENT/COLLECTION
Payments can be made through various channels, including bank transfer,cash
deposit, or in person of our office.

1. Cash Payments: We accept cash payments directly from customers.

2. Credit/Debit Card Payments: We also accept payments via credit or debit cards.
This can be facilitated through point-of-sale (POS) terminals or mobile card readers.
3. Bank Transfers: For larger transactions or business-to-business transactions, sole
proprietors may prefer payments via bank transfers. This method is often used for
invoices or larger sales.

4. Online Payment Platforms: Services like Gcash and Maya facilitate online
payments and money transfers between individuals or businesses.

5. Installments Payment: Payment of a sum of money in small regular amounts over

a period of time until the total amount is paid off. The amount depends on the amount
of loan and interest rate of the loan itself.

REMEDIES IN CASE OF DEFAULT

In the unfortunate event of default, our company prioritizes a proactive approach

aimed at resolving the situation amicably whenever possible. However, if alternative
arrangements fail and the default persists, the following remedies may be pursued:

a. Debt Collection Procedures: Our company may engage professional debt

collection agencies to recover the outstanding debt. These agencies operate within the
bounds of the law and adhere to ethical practices.

b. Legal Action: If necessary, legal action may be initiated to enforce the terms of the
loan agreement. This could involve filing a lawsuit against the borrower to obtain a
court judgment for the repayment of the debt.

c. Repossession of Collateral: In cases where the loan is secured by collateral, such

as real estate properties or vehicles, our company reserves the right to repossess the
collateral to offset the outstanding debt. Repossession will be conducted in
accordance with applicable laws and regulations, with due consideration for the
borrower's rights.
d. Credit Reporting: Persistent default may result in adverse effects on the
borrower's credit score and creditworthiness. Our company may report delinquent
accounts to credit bureaus, which could impact the borrower's ability to access credit
in the future.

e. Restructuring Options: In certain circumstances, our company may offer loan

restructuring options to borrowers facing financial difficulties. This could involve
renegotiating the terms of the loan to accommodate the borrower's changed
circumstances and facilitate repayment.

It is important to note that our company views default as a last resort and is committed
to working closely with borrowers to explore feasible solutions and minimize the
impact of default on all parties involved. Open communication and transparency are
key principles guiding our approach to default management.

This comprehensive strategy ensures that our company can effectively address default
situations while upholding the principles of fairness, professionalism, and respect for
our clients' rights.

Financial projections for the first year of operation

Personal Loans
Loan Amount: Up to PHP 100,000
APR Range: 4% to 8%
Number of Loans: 13
Average APR: (4% + 8%) / 2 = 6%
Total Loan Amount: PHP 100,000 * 13 = PHP 1,300,000
Interest Income: PHP 1,300,000 * 6% = PHP 78,000
Item Amount
Loan Amount Up to PHP 100,000
APR Range 4% to 8%
Number of Loans 13
Average APR 6%
Total Loan Amount PHP 1,300,000
Interest Income PHP 78,000

Business Loans:
Loan Amount: Up to PHP 300,000
APR Range: 10% to 18%
Number of Loans: 9
Average APR: (10% + 18%) / 2 = 14%
Total Loan Amount: PHP 300,000 * 9 = PHP 2,700,000
Interest Income: PHP 2,700,000 * 14% = PHP 378,000
Item Amount
Loan Amount Up to PHP 300,000
APR Range 10% to 18%
Number of Loans 9
Average APR 14%
Total Loan Amount PHP 2,700,000
Interest Income PHP 378,000

Emergency Loans:
Loan Amount: Up to PHP 100,000
APR Range: 5% to 8%
Number of Loans: 16
Average APR: (5% + 8%) / 2 = 6.5%
Total Loan Amount: PHP 100,000 * 16 = PHP 1,600,000
Interest Income: PHP 1,600,000 * 6.5% = PHP 104,000
Item Amount
Loan Amount Up to PHP 100,000
APR Range 5% to 8%
Number of Loans 16
Average APR 6.5%
Total Loan Amount PHP 1,600,000
Interest Income PHP 104,000
Table of all estimated from all kinds of loans:
Loan Number of Average Total Loan Interest
Loan Type Amount APR Range Loans APR Amount Income
Personal Up to PHP 4% to 8% 5 6% PHP 500,000 PHP 30,000
Loans 100,000
Business Up to PHP 10% to 18% 5 14% PHP PHP 210,000
Loans 300,000 1,500,000
Emergency Up to PHP 5% to 8% 5 6.5% PHP 500,000 PHP 32,500
Loans 100,000

ASSURANCE COMPANY
PROJECTED INCOME STATEMENT
FOR THE YEAR END DEC 31, 20XX

Income
Personal Loan Interest
78,000
Income
Business Loan Interest
378,000
Income
Emergency Loan Interest
104,000
Income
Total Income P560,000
Less:
Salary Expense P135,000
Rent 80,000
Utilities 55,000
Other expenses 36700
(P306,700)
Net Income Before Tax 253,300
Less: Tax Expense (50,400)
Business Permit Expense (20,400)
Net Income After Tax and
P182,500
Business Permit Expense
FORMS NEEDED:

Loan Application Form: This is the primary form that customers must fill out to
apply for a loan. It collects detailed information about the borrower, including
personal details, contact information, employment status, income sources, and the
purpose of the loan.

Income Verification Documents: Customers will need to provide supporting

documents to verify their income, such as payslips, employment certificates, or bank
statements. These documents help assess the borrower's ability to repay the loan.

Identification Documents: Customers must submit valid identification documents,

such as a government-issued ID (e.g., passport, driver's license, or voter's ID), to
verify their identity and ensure compliance with regulatory requirements.

Collateral Documentation: Depending on the type of loan and the borrower's

creditworthiness, collateral may be required to secure the loan. In such cases,
customers will need to provide documentation related to the collateral, such as
property titles or vehicle registration papers.

Credit Report Authorization Form: Customers may need to authorize the assurance
company to obtain their credit report from credit bureaus to assess their
creditworthiness and determine the loan terms and conditions.

Loan Agreement: Once the loan application is approved, customers will need to sign
a loan agreement that outlines the terms and conditions of the loan, including the loan
amount, interest rate, repayment schedule, and any other applicable fees or charges.

Direct Debit Authorization Form: Customers may opt to authorize automatic loan
payments through direct debit from their bank account. In such cases, they would
need to complete a direct debit authorization form providing their bank account
details and consent for automatic deductions.
Other Disclosures and Declarations: Customers may be required to sign additional
forms or disclosures related to the loan, such as disclosures of fees and charges, loan
insurance options, and declarations regarding their financial situation and credit
history.