Jojos Cashew Nuts 2
With a loan of EUR 9,600 Elpidio Mallanao has to purchase 1,500 kilos from the farmers for upcoming festivities.
- Local partner investment
- 2 new jobs
- 8 people reached
From ‘Jojo’s Cashew Nuts and General Merchandise’ to “Pidiong’s House of Cashew Nuts”, Mr. Elpidio ‘Jojo’ Mallanao has changed its business name in 2016 to have it more attractive to regular and new customers. In 2001, ‘Pidiong’s House of Cashew Nuts’ started its operation in Antipolo City, Rizal. Raw cashew nuts are purchased from local and international farmers, where it is processed (thru cutting, drying, packing) and then being supplied to co-sellers in‘Pasalubong Center’.
In the rural area of Antipolo, over 100 individuals are provided with a job by working part time. Some of them work from home and delivers the finish product after. Those who works in his production area receive snacks aside from their salary. Workers are a mixed of housewives, out of school youth, even senior citizens that needs money for a living.
This month as a season of cashew nuts, Mr. Elpidio Mallanao has to purchase 1,500 kilos from the farmers as part of his preparation for the upcoming festivities in the nearby areas. Both NPFC and LAH will be assisting him.
Elpidio Mallanao is a graduate of the SME Academy Batch 1 by LendAHand Foundation and local partner Negosyong Pinoy Finance Corporation.
|Company name||Jojos Cashew Nuts 2|
|Sector||Wholesale / Retail|
Impact of this project
- With this investment 2 jobs are created
- With this investment 8 people are reached
About the risks
What are the risks of investing money?
The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.
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How does Lendahand minimize the risks?
Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.
For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent 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 companies request funding. To provide more insights on risks, an independent party comes in to perform an analysis of 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 investing advice.
Does Lendahand provide a guarantee?
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For most direct investments, there is no guarantee. However, currency risks are covered.
Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.
Does Lendahand have a license or exemption?
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Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
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What happens if the local currency devaluates?
Our local partners and companies bear the exchange rate risks. We settle the investments, 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) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your 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 entrepreneurs 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 with trusted money and or financial instruments (such as notes or options) to a licensed bank, an 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 (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to €20.000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
Why is Intersolve EGI handling my money?
What happens when a local partner goes bankrupt?
|Equity / total assets||17.00%|
|Write-off ratio last 12 months||14.20%|
|% investment amount in arrears (>90 days)||19.90%|