BUSINESS GROWTH PLAN FOR

ANALIGHT CREDIT SERVICES LIMITED

P.O.BOX 75208
Kampala, Uganda
Zakariya House, Opposite Total Kalerwe-Gayaza Rd
Office number G6
+256709740274
[email protected]

July 1st 2022

 TABLE OF CONTENTS
I. EXECUTIBE SUMMARY
II. INTRODUCTION
III. SWOT ANALYSIS
IV. COMPANY’S TWO YEAR EXPANSION & FINACING
V. CONCLUSION
EXECUTIVE SUMMARY
On September 14th, 2020 we opened shop to our very first client called Jane Rose
Kengozi a hawker and resident of Kimwanyi Wandegeya (commonly known as
Katanga Slum). She acquired a one month loan of 100,000/- and was able to pay it
back in less than three weeks having accomplished her intended purpose of
borrowing.
Barely a month after the easing of a total lockdown that broke down the financial
muscles of many people especially the least earning, we moved into the market
with this category of people on our minds. As a company, we zeroed down to
giving collateral free loans with financial literacy lessons to daily income earners
who are unable to access credit due to the size of their business and absence of
collateral.
Ever since, ours has been more than credit as we intend to leave value for every
money disbursed thus the continuous financial literacy lectures and support we
pass on to our customers.
With a clientele base of over 300+ clients and a recorded 1000+ loans disbursed
yet with 1.1% overall written off loans puts us in a more trusted position as a
service provider and as well a very efficient investment tool.
Over the last 21 months of activity we have planted our foot firmly in the lending
market. A lot has been learned and as the business dynamics keep shifting, a tech
based and customer centered model is the best outfit for the competition in the
market today; we therefore make ourselves ready to satisfy our loyal client and the
unexplored prospects by considering the need to scale, upgrade and serve our niche
which is less prioritized by other players in the market.
ABOUT ANALIGHT CREDIT SERVICES LTD
Analight Credit Services limited as a credit only institution begun operations in
2020 and was duly registered as a limited liability company under the laws of
Uganda with registration number 80020003161696.
Analight Credit as shortly known specializes in extending micro collateral free
loans to persons with daily income earnings currently in the districts of Kampala
and Wakiso. The company offers credit facilities of as low as UGX100, 000/-
and a maximum of UGX2, 000,000/- for a first time client.
Founded by two experienced credit analysts Paul and Rehema, Analight credit has
continuously thrived under strict adherence to the company’s mission of building
lives through fostering financial inclusion and a vision “To be the most reliable and
convenient financial partner for growth”
The company core values; - Relationships, Integrity, Knowledge, Timely and
Growth are the right explanation of what we offer as being beyond loans. We value
our partners and customer experiences, holding them with much respect and
honesty as we share knowledge on different levels. Our timely service and
feedback speaks volumes about our intention to facilitate customer growth which
translates into our own growth.
Our unique reason for being in the market is;
-To serve credit with financial literacy thus limiting bad debts
-To serve the young people and women in business who may not have collateral
-To be available for the low capital businesses that are denied credit from
mainstream borrowers
-To save the unbanked from high and exploitative interest rates of shylocks
To be the sure go to financial institution in times of urgency

In addition to financial literacy lectures, we offer these loan products;

a) Cash flow based 1(Cashbul1)
This is the company’s flagship product which is a one month loan
ranging from UGX100, 000/- to UGX 399,999/-. It carries a
processing fee of UGX10, 000/- and a monthly interest rate of 15%
flat, has a weekly repayment schedule.

b) Cash flow based 2 (Cashbul2)

Cashbul2 is a loyalty form of loan which is advanced to clients that
have excellently repaid at least two cycles of Cashbul1.It is a two
months loan paid weekly with a processing fee of UGX20, 000/- and
flat interest rate of 15% per month, ranging from UGX400, 000/- to
UGX2000, 000/-

The company’s business model of leveraging area coordinators for clients’

mobilization and monitoring is credited for the bigger part of the success story we
are, especially on the loans quality and repayments. Our well trained coordinators
who are permanent residents in our two choice areas of operation (Kyebando &
Wandegeya) have performed incredibly well in protecting the interests of the
company as well as promoting the products within their vicinities. The
comradeship of the directors and coordinators has only kept us going stronger and
better every passing day.
SWOT ANALYSIS

Strengths Weaknesses Opportunities Threats

Product/ -Collateral free -Interest is higher -Collateral free -Collateral free
Service loan compared to with reduced digital loans to
Offering -Less digital loans interest will sell new customers
documentation -Loan application faster after posses higher risk
required to disbursement review when
-Already tested is not self service cheaper capital is
& sellable loan -More loan acquired
products processing time -Previously
-Short term loan as compared to uninterested leads
periods drive digital loans will convert to
repeat business clients when rates
& processing
time are slashed
-The target
market of daily
income earners is
inexhaustible
Brand/ -Our existing -Loan processing -Our financial -The high cost of
Marketing clients keep is slower literacy lectures internet
referring more compared to endears our brand -Digital
clients digital loans among residents marketing attracts
-Our loan competitors in hence conversion more scam and
products are the same niche to clients fraudsters
already tested to -With improved
be sellable in processing time
the market more referrals
-We are and business
offering speed will
incredible happen
customer care -Given the
-We leverage resources, digital
the employment marketing can as
of area well bring on
coordinators to board more
mobilize new clients.
 business after -Continuous use
thorough checks of area
coordinators and
local leaders will
bring in more
well vetted
clients
-Employing of
relationship
officers will
boost client
recruitment
Staff/HR -We are -There has been -Given the -Without an
working with some lenience, resources and organized
well trained compromise and subsequent structure,
efficient village failure of due business entrenched
based diligence by expansion, company culture,
coordinators. coordinators due recruitment of values and
-The rest of the to their professionals for regular audits,
work beyond relationships with different professionals
mobilization the village mates departments will have a tendency
and follow-ups be inevitable. of
is handled by -The job market underperforming,
the directors in Uganda is cheating and
filled with both committing fraud.
fresh graduates
and experienced
professionals that
may be required
Finance -Company is -Due to limited -While operating -Without
currently able to capital, growth with cheaper or acquisition of
cover all and scaling is no interest capital cheaper capital
expenses. also limited. the company can the company’s
-The borrowed -Total borrowed become twice financial growth
capital in terms capital is bigger more profitable will still be super
of conditional than operating than it is slow due to the
investment cash flow since currently. high interest rate
partnerships can much was on borrowed
only be invested in capital.
withdrawn by equipment,
 the investor branding and
after a three legal obligations
months’ notice -Borrowed
to the company. capital is on an
-The clean loan average of 9%
book with a interest per
written off month which is
recording of much expensive
only 1% per for a startup; it
annum ensures contributes more
profitability and than 50% of the
consistent good company
financial monthly
position of the expenditure.
company -Due to limited
capital, growth
and scaling is
also limited.
Operations/ -Analight credit -The company’s -When -The possibility
Management currently other processes cheaper/no of a technology
operates under such as interest capital is based business to
competent and marketing and acquired, the face technical
experienced follow-ups still company plans to challenges is
management of have gaps in go digital and obvious.
the two terms of transform to a -There’s a threat
founders who experienced fintech company of hackers who
have been in the handlers. -With the hiring target fintech
field of lending -The loan cycle is of qualified and businesses
for the past still managed the experienced -On boarding of
seven years analog way thus persons in all the majority
the sluggishness departments target clients who
and inefficiency operations will may not have
in business improve in speed access to internet
operations and efficiency is also a possible
threat to smooth
operations
Market -Pre-existing -Our target -With the -Our target
loyal customer clients are fond required clients are mostly
base of multiple resources in illiterate or semi
-Sustained borrowing which place, marketing illiterate
strong most times ends and due diligence -The high cost of
relationships in loan default can convert at internet may not
with area -Majority clients least 15% of the favor majority of
coordinators of our niche are projected 10,000 our target market
and local not registered prospects per -The market is
leaders who with CRB Kampala city circulated with
work as referees division within very cheap digital
-Our niche the first six loan providers
market is an months.
abundant space
of possible
clients, an
estimated
10,000
prospects per
Kampala
division
COMPANY’S TWO YEAR EXPANSION & FINACING PLAN

 The company seeks to acquire an investment of up to UGX 200million in

form of equity financing before January 2023.
This funding is intended to facilitate transit of our entire operations system
from analog to digital, to facilitate relocation of our offices to a spacious and
presentable premise, furnishing of the new office, hiring of essential staff
and outsourced services as well as paying off the recurring debt from angel
investors and the biggest percentage of the investment to be channeled into
working capital.

Investment Breakdown

ITEM BUDGET

Business Digitalization UGX10,000,000/-

(Website & Android App)
Office premises UGX10,000,000/-
(6 months’ rent & Branding)
Office Furnishing UGX10,000,000/-
(furniture & equipments)
Salaries & benefits UGX10,000,000/-
(2 months salaries for 6 staff)
Pay off debt UGX10,000,000/-

Working capital UGX150,000,000/-

Grand Total Ugx200,000,000/-

We are sure to pose a progressive growth of the company to create room and
confidence for more future investment through continued adherence to the
company’s Key Performance Indicators (KPIs) listed below.
-Growth of disbursed amount by 25% per quarter
-Growth of loan book by 25% per quarter
-To always keep clients in arrears below 25% of total active clients at any given
time
-To maintain the portfolio at risk of above 30days below 3%

LOANBOOK & GROSS PROFIT GROWTH PROJECTION FOR ONE YEAR

Time period Outstanding balance(UGX) Gross profit(@15% UGX)
Opening balance 150,000,000
1st Quarter 187,500,000 28,125,000
2nd Quarter 234,375,000 35,156,250
3rd Quarter 292,968,750 43,945,312
4th Quarter 366,210,937 54,931,640
NB: The amounts stand for the loan book value and monthly gross profit as at closure of the last month
on every quarter

PROJECTED MONTHLY COST OF OPERATION

Time period COST (UGX)

1st Quarter 14,500,000/-
2nd Quarter 18,500,000/-
3rd Quarter 22,500,000/-
4th Quarter 25,500,000/-

CONCLUSION
As a company, this short term goal doesn’t blind us from the big picture five years
plan of expansion. We choose to consider this first round of investment since it is a
tool we are counting on for the essential fixes we need to match the competition in
the market. The expertise and market are in our favor owing to the fact that we are
there and doing it within the limitations of not having the required technology and
capital.
We remain optimistic for more pitching and detailed discussions which shall lead
to cemented agreements for this realistic investment dream.