Micro-lending firm gaining ground in Philippine franchising


    When LT&G Credit Line, a micro-lending company based in Bicol saw that their company was becoming instrumental to more small-scale businesses for sustainance and growth, its CEO Marco Antonio Soliman immediately thought that they needed to expand not only outside Bicol but across the nation.

    With the help of Francorp, the worldwide leader in franchise development and consulting, LT&G Credit Line is currently making waves in the franchise industry because of its unique business concept- a credit line company offering just the right amount of interest for the company and the borrower to earn profit at the same time.

    Established in 2013 the lending company has been the go-to of sari-sari stores, eateries and similar small businesses when funding or capital falls short and getting a loan from commercial banks is a hassle. Six year later, it became so successful that many potential investors are applying for its franchise.

    “At the back of my mind, I was thinking who would be interested to franchise when a lot of big banks and informal lenders have already saturated the market. My friends are discouraging me to pursue my idea of having it franchised, but I believe, given the right opportunity for the people to understand the benefits from the business and the science about it, many existing and would-be business owners will be interested,” Soliman said.

    Aside from the micro-lending firm earning the right amount of profit and its franchise model being able to provide jobs, Soliman said he is glad that the business is growing alongside its MSME clients. “We actually consider them partners, we want them to succeed in their business. Our interest rate is very friendly. We know that if we charge more, they will not earn from their business” Soliman shared.

    “With our business system, many of our borrowers are renewing their credit line several times over. Plus we see them grow their respective businesses which is the most rewarding part of our business” he said.

    His case in point was a pili nut vendor in Legazpi City who sold his products in a heat-sealed plastic pouched and displayed under a makeshift stand by the roadside. After several loan renewals from LT&G, the seller now abides with DTI’s standards – the products are now neatly labeled and displayed inside a glass cabinet. Other businesses were mini-groceries now that were once sari-sari stores.

    Soliman said the company is continuously evolving to be proactive on the risks involving such kind of business model. Each branch gets evaluated regularly to check on the risk-management measures. “We always try to find ways to minimize the risk vis a vis the acceptable budget” he assured.

    “Lending can be the best or the worse business” he cautioned. “For us, we were able to study the science behind it. Qualifying the right borrowers is also a key factor” he concluded.

    With LT&G’s partnership with Francorp, the company is expecting for more franchise outlets opening across the country. From 5 branches, the company will be ending this year with 50 branches, 45 new branches are all franchise-owned.