The document outlines proposed improvements to the financial services department of Cargill Philippines Inc. including timelier collections follow up, stricter repayment plans, increased monitoring through additional reports, strengthening credit application processes, requiring more collateral, and knowledge sharing between departments to streamline operations.

1. CARGILL PHILIPPNES INC.
Financial Services Department (May 2016 to September 2016)
Current activity Proposed/Accomplished improvements REMARKS
A COLLECTIONS Corresppondence
TIMELY / REAL TIME COLLECTIONS FOLLOW-UP
no. no.
1 Day 1 - 6 past due - Not indicated 1 Day 1 - 6 past due - verbal follow-up
2 Accts within 30 days past due - 1st reminder letter 15 2 7 days past due - Cargill Reminder letter 7 Early follow-up will result to early collections success
3 Accts over 30 days - 2nd reminder letter 15 3 14 days past due - Cargill Demand letter 7 Late follow-up will result to late collections
4 Another 30 days - 1st Demand letter 30 Total days Cargill Letters - 14 days or worse none-collection.
5 Another 30 days - 2nd Demand letter 30
Total days Cargill Letters - 90 days
Acct. endorse to Lawyer: Acct. endorse to Lawyer: Ex: With the current practise
6 1st Demand Letter 10 4 21 days past due - 1st demand letter from lawyer 10 Letters are sent average 1 - 3 years
7 2nd Demand Letter 10 5 28 days past due - 2nd Demand letter from Lawyer 10 from the time customer turns delinquent.
8 3rd Demand letter 10 20 days
30 days
Spoke with current Lawyer Atty. Ayie Mauleon -
8 Over all Total 120 days 5 Over all Total 34 days proposed process A-ok for her.
B RE-PAYMENTS (Re-structure) humanitarian purpose
One time re-payment contract ONLY
Compromise agreement (DARA) on collections Will ONLY enter pre-payment if we can't
Multiple re-payment contract (1 - 3 contracts) retrieve cash, property that can compensate the
receivables.
Customer will think and feel
not serious in collections. Customer will think & feel
We are Dead serious in collections If customer has potential to pay (still with running
business and with potential properties)
Will pursue Litigation at once to push the customer
to pay early.
C CUSTOMER WHEREABOUTS and CONTACT RECORDS
(MASTER LIST)
Updating of Customers records (Addresses/contact We can be sure we don’t loose track
numbers, email address, others) of customer.
NO idea on the frequency
NO Reports
Basis of collections always available
Monthly basis (with REPORTS) and updated.
Updates by FSA directly to NIS system
D REPORTING of Bad Debt REPORTING IMPROVEMENTS (FOCUS REPORTS):
Bad Debt - Bad Debt: Clear view of every bad debt segment
1 Past due will allow easy monitoring of actions
Monthly reporting 2 Re-payments taken and early collections result.
3 Legal
4 Write-off Create specific strategy
Weekly collections ff-up (action taken / results)

2. Additional reports:
Paying Habit segmentation Report still for development
using the query name system
AR healthy range Report still for development
Weekly AGING report (source every Friday) Individual FSA/CS follow-up to enforce
Intense monitoring of current going into pastdue status early collection process.
E KRA TARGETS
Proposed:
Current: % current
% excess credit exposure $ overdue Please see attached format report
% overdue ADL (Ave. days late)
DSO write-off (# of accts)
Bad debt as % of Net sales write-off (in P'000)
New accts (# of accts) Report per FSA
No. of accts approved Over-ALL
No. of accts disapproved
No. of accts cancelled Separate report
% of Approval rate CFN, CQN, CPN
Gross acct
F COLLATERAL
Increase security:
Very minimal:
Ex:
SIOC
OF - 100k
Cargill - 85K
Collateral - 10M worth of TCT
Most companies especially (FMCG) Fast moving
consumer goods requires collateral (min 60% max
100% for the request Credit Limit) for the Credit
term transactions, Fact, even if a customer is doing
great today with his business, emergency strikes like a
thief, you can never can tell, that’s why it’s a must to
secure our precious receivables with collaterals so
dilemma will be reduced if not totally prevented.
Priority to require :
1. OF - MBTC | other Banks
2. Bank Guarantee (Domestic LC)
4. certificate of stocks (blue chips)
5. Cash Bond
6. Certificate of time deposit, savings
deposit
7. club shares
2nd priority requirement:
1. TCT/REM
(NO for aggri lot)
Encourage/push:
CBD - check before
del
CUD - check upon
del
Pre-signed check
For the TCT: (original copy)
Properties (TCT/REM) with original copy only Must be annotated in favor of Cargill Registry of Deeds
Not annotated, REM not executed
REM must be signed and notarized in favor
of Cargill
G. CREDIT
Forms - Limited data gathering per CAF
Screening - NO association 1 Upgrade Credit Application Form and Evaluation Form see separate attachment
Requirements - Different direction
2 Recommend / encourage National associations see separate presentation
membership:
CMAP - Credit Mgmt. Asso. Of the Phils.
ASCAP - Allied Suppliers Credit Asso. Of the Phils.
Others
3 Strict Requirements: " a MUST"
Completely fill-up and signed CAF (Prime data source)
Business Registration

3. H. COMMUNICATION / ENGAGEMENT
Availability of self even after office hours and weekends
or holidays, we said SALES has NO vacation leaves
because they have to work on the sales of product
always for the company’s growth, we, as support group
must assist our sales always because we are the
extension process of sales, we must be available
anytime they need us.
Here, we encourage the people in Credit to work 24/7
as we say, which means we are highly engage and
available every time our co-worker needs our attention
to service the needs for the growth of the company.
Also, we encourage our colleagues to be versatile-multi
tasking so delays in process will be prevented cause
almost everybody knows what everybody know.
“doing ordinary extra ordinary well”
I. KNOWLEDGE ENHANCEMENT:
Conduct local Credit and Collections training Moving Forward
Push outside associations training and seminars
J. CPN Transition
Prime CPN Orientation of FSA's Done
Plant visit in Meycauayan Done
Customer master delegation list (per FSA) Turn-over to (3) FSA's Done
Continuous familiarity thru meetings On-going
Actual Caddying visit to key accounts with Ed Ramos On-going (Starts August 2016 itinerary
until turn-over are accomplished)
K. FSS knowledge transfer and process
Point person: Updates:
Beth Pineda, Joanna, Tin for CS Still Process mapping
Arnel Mendoza for FSA
NO discussion on the transfer of process yet.
L. Decentralize Appraiser & Litigation lawyers
Fast and practical management of activities since contacts "A Must to start very soon"
already in the site where services are needed.