L Evaristo Shoe Shop

  • Local partner investment
  • 1 new job
  • 4 people reached



12 months



Annual interest



6 months

Repayment Interval
Fully funded in 138 days on 29 June 2013.
+ 11 other investors

Larry (Lauro) Evaristo is an entrepreneur that grew up in a shoe manufacturing environment. As his parents used to own a small shoe factory, he was exposed to and grew accustomed to shoemaking from a very young age. As a child, an uncle of his taught him how to make the patterns. While he was finishing school, he earned some money as a part-time pattern maker. Later on, he became a production manager for Medford shoe manufacturing in Calumpang, Marikina a position he held for seven years.

In 1992, his parents decided to close down the factory, and Lauro took this as an opportunity to assume the business, as the equipment and tools were already at hand. Through some friends in the Bocalo Shoe Corporation which supplies to big malls like Supermall (SM), he was able to start selling directly in Supermall (a leading chain of malls in the Philippines). This gave him a big break and allowed his business to grow. Purchase orders came in bulk. From 6 workers, he grew his production to 25 workers (14 males and 11 females).

The success enabled him to provide his worker with social services like Social Security System, Philhealth and Pag-ibig. These are benefits that a.o. allow workers to draw income when they reach the age of 60 and provides them with access to low interest loans. These social services are mandatory for big companies, but are less common for small companies as they often can not afford them. He also provided two of his workers with free lodging and he arranged medical assistance to his workers whenever it was needed.

By 2000, imported shoes from China had invaded the Philippine market. This had adversely affected a lot of local shoe manufacturers. It had become very hard to compete against the imports. Although the imported shoes were of inferior quality, they were a lot cheaper. The big malls were cutting their orders to local producers and started to buy more and more shoes from China. The Chinese competition and restrictions by the big malls made it harder and harder to sustain the business. E.g. the SM mall extended their payment term from 60 to 120 days and the design of the shoes had to be approved by the SM mall. After many rounds of making sample after sample and still being rejected, it became clear that they were not going to win the business anymore.

However, Lauro still had his passion for the industry and he realised that shoe making is the only thing he knows. So he decided to go back to what he does best and he ventured out to produce slippers (mostly) for men. He created the brand name Spartacus and this gave him a way back into the industry.

It was not an easy comeback at all. He had to borrow money from his cousins. After a while they suggested that he should get a loan from a financial services company. This could augment his working capital, enabling him to grow bigger. Indeed, this turned out to be true when his accountant introduced him to the Negosyong Pinoy Finance Corp (NPFC). Barely a month after he received the loan from NPFC, the company already had to do overtime to prepare stock for the Baguio caravan, which has more than 2 million local and foreign tourist attending the Panagbenga Festival. Larry and his team ended up producing three thousand pairs of shoes for selling at the festival. This also generated additional income for his workers because of the overtime.

Right now Larry is supplying shoes to Zanea which also sells shoes themselves and to the ES Fashion Boutique. He has a stall in Marikina Riverbanks and the Marikina Trade Fair. With annual gross sales of 2 million, Larry Evaristo has come a long way from being a part-time pattern maker to a big time shoe-maker.

Company nameL Evaristo Shoe Shop
CEOLauro Evaristo
SectorManufacturing / Production

Impact of this project

  • With this investment 1 job is created
  • With this investment 4 people are reached

About the investment

TypeLocal partner investment
Funding target€2,600
Annual interest3.00%
Maturity12 months
Repayment IntervalSemiannually
Terms and conditionsShow
Note termsDownload

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.

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 investments 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?

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

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?

Usually we don't. 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.

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?

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 concerning private and payment details. All sensitive data is sent through an encrypted connection (https). Also, information is stored (encrypted) in a secured facility provided by AWS: the world’s largest hosting service. A secured connection and multi-factor authentication can only retrieve customer documents.

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?

Lendahand works with Intersolve EGI: a Dutch financial institution specializing in payment settlement and electronic money. To be able to offer these financial services, Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and owns a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve has no access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

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

Why is Intersolve EGI handling my money?

As part of the AFM license for investment firms, it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the costs. This collaboration offers you more security since your money is placed on a protected bank account immediately after making your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there’s a chance you’ll lose (part of) your money. Lendahand will try to recover outstanding payments, but the success rate is limited in such situations. For you, as an investor, there’s no possibility of taking action against the financial institution. Therefore, it is recommendable to choose several different projects.

About NPFC

Portfolio Overview€2,091,922
Equity / total assets17.00%
Write-off ratio last 12 months14.20%
% investment amount in arrears (>90 days)19.90%

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