Capital Requirement The minimum paid in capital of any lending company which may be established after the effectivity of this law shall be One million pesos P1, This is the lending out of small amounts of cash, usually without collateral.
Providing microfinancing, however, is a big undertaking. Keeping track of payment due dates for hundreds of clients is a demanding task, and can only be achieved if you have a good IT infrastructure. The Certificate of Authority to operate a branch, extension office, unit or satellite office shall be coterminous with that of the Head Office.
Existing lending investors organized as single proprietorships or partnerships are disallowed from engaging in the business of granting loans to the public one year after the date of effectivity of RA No. It shall issue the appropriate instruments and documents to the parties concerned to evidence its lending and borrowing transactions.
Failure to commence operations within said period shall be a ground for the suspension of its CA. In the matter of collection, it is vital to know what you can legally do to avoid complications. To minimize your collection expenses, you should pursue bad debtors in the small claims court.
President, BusinessCoach, Inc. This new trend has made micro lending a very lucrative business in itself. Rate of interest of the loan; iii. An important part of your logistics is software that will allow you to keep track and monitor repayments.