JC Home Decour
Handy storage boxes made of natural materials. With a loan of EUR 7,600 Alberto is able to increase production.
JC Home Decour Corporation, is an export company engaged in manufacturing and exporting of storage baskets and home accessories to the USA and Asia. Its product lines are all made of indigenous materials sourced entirely in the Philippines. The company had its humble beginning in 1995, when spouses Alberto and Jocelyn Ceniza, left their individual jobs and went into business.
The first company they founded was engaged in the rehabilitation and fabrication of container vans for a prestigious shipping company in Cebu, Philippines. The company then diversified into repair of surplus vehicles, working in coordination with a local importers of surplus vehicles from Japan and Korea. In 1996, when the furniture business in Cebu was booming, they ventured into the metal furniture frame manufacturing business. In January 2000, the furniture export business was experiencing a downturn due to the Asian economic crisis. Many furniture export business in Cebu were closing down. Jocelyn felt the need to change her business: Orion Home Furnicraft Intl was established. The new company did not cater to the furniture sector but rather in the baskets and storage market which at that time was still fertile grounds. The company invested heavily in joining local and international exhibits for the succeeding years. Little by little, Orion Home Furnicraft Intl build it's name as a high quality storage baskets manufacturer.
Initially, Orion Home Furnicraft's major market was Europe. The company was serving buyers from Italy, Belgium, Germany, Spain, Switzerland and France. In 2002, Orion was able to penetrate the US market. In 2012, the company became an official corporation: JC Home Decour Corp was founded. The new corporation has five stockholders. With this new development, the company foresees an increase in sales within the next 2 years. The company has streamlined its operations starting with the development of a computerized accounting system and the hiring of competent employees to foresee day to day operations thus maximizing its efficiency. All these were done to ensure maximum growth over the next 2-3 years. Currently the corporation employs 25 workers.
Lendahand partner's NPFC is helping JC Home Decour Corporation with a loan to acquire additional raw materials to boost the production and to support incoming orders.
- Company nameJC Home Decour
- OwnerAlberto Ceniza
- LocationCebu City
- SectorManufacturing / Production
About the risks
What are the risks of investing money?
Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
How does Lendahand minimize the risks?
Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via firstname.lastname@example.org.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.
Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.
Does Lendahand provide guarantee on the loans?
No. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.
Also, for direct loans no guarantee is provided.
Does Lendahand have a license or exemption?
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
How safe are my personal details?
We adhere to strict safety requirements with regards to private and payment details. All sensitive data is sent through an encrypted connection (https). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.
What happens if the local currency devaluates?
Our local partners and Companies bear the exchange rate risks. We settle the loan, redemptions, and interest payments in euro.
Does Lendahand use a third foundation fund?
What happens with my money if Lendahand goes bankrupt?
If Hands-On BV (containing the brand name Lendahand) would go bankrupt trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then in consultation with a trustee handle all repayments between the investors and investees up until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service. The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
Why is my money going via Intersolve EGI?
What happens when a local partner goes bankrupt?
|Number of companies in portfolio||378|
|Write-off ratio last 12 months||14.20%|
|% investment amount in arrears (>90 days)||19.90%|
|% investment amount in arrears (>180 days)||10.20%|