Reversing Loan Shark Operations Making it a Debt-trap to Prosperity

The absence of big commercial establishments in our province makes it difficult to accommodate employment. Mostly the people of Southern Leyte is dependent on the government for jobs. Because of this, government offices and agencies are crowded with personnel mainly to fulfill the promise of employment. This is where the job order employees, the contractuals and the common laborers comes in.

The sad thing is, some local agencies cannot meet the 15-30 salary obligations and sometime salaries accumulates for months. This is the perennial reason why loan sharks prosper and flourish in most institution.

Objective - To create a cooperative or a federal association of employees basically the contractual employees, job orders and the common laborers of Southern Leyte, Philippines and to cater their financial needs while discouraging the presence of loan sharks. It is very sad to note that loan sharks operates within the office premises of an organization or agency and in most cases have access in the accounting section and has controll over vouchers and payrolls.

The envisioned cooperative or association with the support of local government heads will make arrangements to compete the loan sharks. Instead of the 20% monthly interest rate profit for the loan sharks, the funds will be utilized as capital contribution or build-up capital of personnel who wish to avail of the services. The whole amount will be use as source of fund for the envisioned organization.

Considering 50% of every project goes to the cost of labor and 20% of that cost goes to our proposed organization, therefore a one million government project can generate 100,000 capital build-up for the association. Considering all will sell their salaries as tradition practice of the Filipino workforce. It would be much larger if we base our assumptions to all government funded projects or the overall government budget allocations.

Private controlled and manage businesses - Mostly, government projects are awarded to private commercial contractors. Applying the same principle can also help the private sector.

The essence of this business plan is to give the common people, the grassroots, the laborers a chance to be owners/investors, workers of their industry.

Getting cash advances while you invest. Unlike the credit cards in the western countries, interest payments is your investments. Turning competitors into partnership is an option.

Equal distribution of wealth. Develop partnership. More service, oneness and solidarity.

Part of my 13 years experience in the banking sector has allowed me to handle small market vendors loan facility. With a minimal interest rate, this program was basically designed to assist small vendors raise capital for small businesses.

For this plan, we will build a cooperative or an association of employees, the common laborers to compete with loan shark operatives. Interest payment generated from the operation will be utilized as capital contribution or build-up capital of each employee who wish to avail of our services. The whole amount will be use as source of fund for the organization.

By this principle alone, we will be building the grassroots of a true and voluntary organization of people who want to improve their economic lives by their own initiative and using their own resources.

Equal distribution of wealth. Eradicate inequality. And hope to fulfill the vision of shared success.