BUSINESS MODEL OF THE BCCCIFI (BISLIG CITY CHAMBER OF COMMERCE AND INDUSTRY FOUNDATION INC.

GUIDE:

SCOPE

1. Open only to all bonafide and qualified BCCCIFI members

2. The MSME and Development Committee will screen and evaluate the loan applicants and will endorse the same to the BCCCIFI President for approval or to her designated alternates in his/her absence

GENERAL PROVISIONS

1. Only bonafide and qualified members of good standing (no overdue accounts) can avail of the loan

2 . Members should have at least three (3) months tenureship to avail of the loan privileged

3. It must be of mutual agreement that the loan should be used solely for the business as stipulated in the application and not for any purposes

4. All loans must be covered with post-dated checks payable to BCCCIFI upon release

5. All loans should be covered with collateral with a market value equivalent to 150% of the loaned amount. Allowed collateral as land, house and lot, and vehicles in good running condition. The original title and tax clearance must be attached to the application loan and for a vehicle, the original OR & CR

6. All collateral should be located within the vicinity of District II of Surigao del Sur and should be free from conflict, liens and encumbrances

7. Maximum amount which will be granted to a first time borrower is php 20,000 only. However, for old borrowers with a very good credit standing loaned amount more than the maximum will be treated on a case-to-case basis depending on the availability of funds.

PROCESSING PROCEDURES

1. Applicants form must be signed by both husband and wife, or if single, the borrower and of his/her beneficiaries .

2. Submits application form to the office together with the supporting documents and of the collateral.

3. The committee evaluates and checks the loan application to ensure that all requirements are complied.

4. The committee submits it's findings /evaluation to the president for approval.

5. The president will approved the loan based on the guidelines,findings, and recommendation submitted by the committee .

6. Approved loan should be submitted to the treasurer for the scheduling of loan release.

6. Disapproved application are returned to the applicants with explanation

7. The treasurer shall maintain a cash book whereby all cash receipts and disbursement are chronologically recorded.

RELEASE PROCEDURE

1. The treasurer shall prepare the check voucher to cover the loan release

2. The voucher should be approved by the president

3. Treasurer shall prepare the check and to be signed by the authorized signatures

4. Treasurer release cross checks of payees account onlt with the corresponding vouchers subject to the availability of funds

5. The loan can be released after the issuance of the post-dated checks and signing of the primissory notes and trust receipt by both husband and wife

6. Approved applications with the signatures are filed in the office.

PAYMENT'S SCHEME

1. The borrower will start to pay the principal and interest after a month of release of the loan. It will be paid weekly thereafter or every Tuesday, one month after the release of loan.

2. Term of payment for php 20,000 loan or less -maximum of six (6) months for more than 20,000 loan- maximum of twelve (12) months.

3. 2% interest per month.

4. 1% Penalty will be charged per week for each Unfunded check to be given to the treasurer

5. Early settlement will be subject to rebate

COLLECTION OF DELINQUENT ACCOUNTS

1. Office staff is responsible for pursuing initial collection efforts on overdue receivables.

2. BCCCIFI will use whatever collection method is appropriate and cost-effective in each circumstances. Collection actions will usually be based on the methods and information outlined:

a. Common routine collection actions

b. More advanced collection actions

MONITORING

1. The committee will meet every last Tuesday of the month or as the need arises to check and evaluate loan application and discuss the state of MSME Assistance Program.

2 . The committee conducts post credit investigation to determine whether the purpose of the loan was followed.

3. The Committee submits monthly progress to the BOI

4. The treasurer shall submit weekly collection report to cover the state of collection.

------------------------------REQUIRED:

: Base on the BCCCIFI (Bislig City Chamber of Commerce and Industry Foundation Inc.

) business model. Formulate a single member-borrower's

1) statement of account and

2) schedule of payment using simple interest and compounded interest