MIO Business Plan

1. INTRODUCTION AND BACKGROUND
1.1. Executive Summary
Micro Institution Operator (MIO) was established as a legal Microfinance Institution under the
laws of the Kingdom of Cambodia in 2015. Its headquarters are located in Siem Reap;
Cambodia. The department was formed with the purpose of providing social and financial
solutions to the poor. The existing business plan provides a rational framework for the
microfinance part of MIO under MIO Mega Groups Company Limited. The Company was
founded by Mr. Sokun Chan Dara; Chief Executive Officer, who has ten years’ experience in
management. Chan Dara has worked with six different companies; where he was assigned to
task internal audit and development business regulations. Ms.Mihoko Onozawa who along
with Chan Dara actively manages the company, brings with her a wealth of experience having
run companies in Japan, Europe, and the Asia Pacific region. MIO has already started a micro
lending pilot project in Siem Reap-City and has scheduled to expand business to the whole
Siem Reap province by mid-2016. MIO intends to use this small loan model to reach out to
10,000 poor families in Cambodia with microloans over next five years in Siem Reap,
Ordormeanchhey, Banteay Mean Chhey, and Kompong Cham, Prey Veng. After achieving this
goal MIO will expand its business by 2019 to Northwest Region. MIO management’s vision
is to gain self-sufficiency within five years. For that purpose, the management restricts the
fundraising portion with a declining percentage of 100% in year one down to 55%, in year two,
45% in year three and 30% in year four. In 2024, MIO has invested a great deal of its time and
resources to develop these important goals.
1.2. Mission and Goals
MIO exists to empower people economically while ensuring that those who live in poverty are
served in body, mind, and spirit. The springboard of MIO is compassionate micro-finance
lending that includes a range of support services for its members through multiple local
programs in strategic rural and urban areas of Cambodia, and will eventually spread to other
countries in Southeast Asia. By 2034, MIO expects to empower the entire population of 5.5
million Cambodians to move out of extreme poverty through strategic goals:
a) Microfinance: This includes urban and rural lending, community owned banking, and asset
development strategies.
b) Community Investment: This comprises consumer-owned businesses, family businesses,
social businesses, and social investment.
c) Entrepreneurial of Entrepreneurship: This involves small-business development, hands-on
learning, technical know-how culminating in self-employment, and life skills development.
d) Dynamic social network: This involves sharing resources, local and global interdependence,
and mobilization of social networks.
As a Microfinance Institution and as known as operating systematic financial, MIO intends to
increase opportunities for the poor to access financial services by providing financial services
to low income entrepreneurs and low income earners. This will involve mobilizing deposits
from members and non-members and then loaning a certain percentage of these funds to urban
and rural producers, traders and small scale farmers. MIO‘s core values are enhancing their
clients ‘self-determination, serving as an ongoing financial resource for members, and
achieving significant outreach and financial self-sufficiency.

e) Community Contribution: MIO intends to contribute to the social and local organizations
across the community and give heartfelt aid to orphanages, schools, hospitals and other such
community based welfare organizations.
1.3. Macroeconomic Situation in Cambodia
The Kingdom of Cambodia is situated in Southeast Asia and part of Indochina area; with a
total surface of 181,035 square kilometers and a population of 15.14 million. Cambodia is a
Southeast Asian nation whose landscape spans low-lying plains, the Mekong Delta,
mountains and Gulf of Thailand coastline. Its busy capital, Phnom Penh; Cambodia gained
its independence in 1991 after the peace agreement in Paris. Cambodia initiated a political
transformation process to a multi-party system with United Nations funding (UN). The Gross
Domestic Product (GDP) in Cambodia was worth 15.25 billion US dollars in 2015. The GDP
value of Cambodia represents 0.02 percent of the world economy. GDP in Cambodia
averaged 4.23 USD Billion from 1960 until 2013, reaching an all-time high of 15.25 USD
Billion in 2013 and a record low of 0.51 USD Billion in 1972.GDP per capital for the lowest
income is between $950, and the above average is between $2945 compared to
unemployment rate in a whole country 0.7%. The gross domestic product (GDP) measures of
national income and output for a given country's economy. The gross domestic product
(GDP) is equal to the total expenditures for all final goods and services produced within the
country in a stipulated period of time. Between 2006 and 2014 the economy picked up by an
average of 3.5% and by 2013 the growth rate (7.3 %). [National Institute of Statistics of
Cambodia]
The cost of food in Cambodia increased 5.30 percent in June of 2014 over the same month in
the previous year. Food Inflation in Cambodia averaged 3.7 percent from 2009 until 2014,
reaching an all-time high of 11.50 percent in January of 2009 (during global crises) and a record
low of -6.70 percent in May of 2009. Food Inflation in Cambodia is reported by the National
Institute of Statistics of Cambodia, but the inflation rate is only 1.57%.
The inflation rate has been relatively stable during the last six years with an average of 1.57%
but food inflation has increased from 5% to 5.30%, with a growth up to 11.5% in 2009. The
population living below the poverty line (income is $2.5 a day) was 60 % in 2012/2014, about

83 % of the population in Cambodia lives in rural areas with agriculture being their main
activity. In 2004, the agricultural sector in Cambodia increased around 4.3% to GDP (Gross
Domestic Product), of which subsistence farming accounted for 81% of GDP and total
employment in Cambodia, respectively. The sector has maintained a steady growth rate of 4%
to 5% to be a major accelerator of economic growth as government strategy plan to export
15,000 tons of rice by 2015. Despite the sector‘s contribution to the economy, its growth rate
is seen as insufficient to improve the livelihood of the rural people as the rural areas account
for around 83% of the 11 million people living below the poverty line [ADB Report]. In
2000/01, 83% of the population living in rural areas in Cambodia was below the basic needs
poverty line which earn only 0.93$ per day, compared to around 23% in urban areas. These
were some of the primary reasons for the poverty, the development of a national economic
growth and poverty reduction strategy initiated by the World Bank, ADB Bank, and IMF
(International Monetary Fund). Cambodia enjoys political stability though the physical
infrastructure and functioning executive, legislative, education, health, and juridical systems
are poorly developed. Recently, the government has policies and regulations in place to
maximize the utilization of domestic and international resources in a strategy to reduce poverty
and eliminate social problems in the country including corruption. According to the Agriculture
Sector Performance Profile report provided by the Cambodia government, the costs of
investigating and prosecuting cases could easily consume half of the country‘s budget, a factor
that slows down the country‘s strategic efforts on poverty alleviation.
2. MARKET AND CLIENTS
2.1. Market
According to MIO research and study of major microfinance and local banking, it is estimated
that there are close to six million small and micro entrepreneurs who need financial services,
and the number is growing by 4.5% percent annually, but still between 15 to 23% below
demand. This demand is mainly found in rural areas. This figure equals 28% of the country‘s
population, mainly dealing in the informal sector. At the beginning of their microfinance
activities, MIO is focusing on the urban informal sector. This sector contributes 43% of the
country GDP. Also it contributed 35% to the total urban labor force. Siem Reap is known as
popular resort town and gateway to the Angkor Wat region, the informal sector offers about
25% of the city's labor force, the rest work in the tourist industry. Nearly two of three urban
households own informal enterprises (as MIO reported 2015). MIO decided to boost informal
sector by providing financial services to their actors. Although there are contradicting views
regarding the relationship between poverty and the informal sector, without it, the poverty
situation of the affected families would have been much worse. At the beginning, MIO selected
four underprivileged target areas for their credit program to informal micro entrepreneurs. All
are situated in Siem Reap province, and provinces along national road No.6 this is including
the east side of the country. Furthermore, MIO is chiefly committed to empowering the
communities in rural areas because of the fact that their access to financial services is extremely
limited. The initial community to be reached during the pilot phase is Kompong Thom, 90 km
away from the MIO Head Quarter in Siem Reap City. For further detailed information
regarding demand, market penetration and opportunities, see Competition.

2.2. Microeconomic Background
Kompong Thom Province
Stoueng Sen is one of eight districts of the Kompong Thom Municipal with an estimated total
population of 30,000 people. The province includes an estimated 908,398 people. The area of
Kompong Thom is 13,814 km² and is situated about 168km away from Phnom Penh-City,
where much of the commerce, banking and national offices are located. As well as a growing
tourist industry; Kampong Thom is also one of the largest producers of cashew nuts in
Cambodia [National Report], with 6,371 hectares under production in 2003–04. The Stoung
District is defined as an urban agriculture sector, with 75% of the population working in
agriculture. Typical small scale businesses include: street vendors and shop workers. The
majority of people only earn enough money to feed themselves that day. Although the poverty
rate is only the half of the country average, Stoung residents do not have savings for retirement,
medical expenses or life insurance. Agriculture activities are based on small and large scale
crop farming which means long hours for very small money. Earnings average a mere 70 USD
per month.
From Siem Reap, MIO will expand their business later to Kompong Thom City and area by
national road No.6 and Kompongcham, the forth area by the national road No.6 will be Banteay
Meanchey Province with an estimated population of 678,033. The towns of Poipet and
Sisophorn are in the western part of the province. There is also an international border
crossing into Thailand located along the National Road No.6 highway. The regions country
size is about 6,679 km2
. This growing economy is reflected in a surplus of 15 % trans -
migration (Poipet Regional Commissioners Office). The total human population in the Banteay
Meanchey about 40% of the population is in the reproductive age (15-44 year old). Men age
between 35 and 45 are around 30% as women nearly 70%. Only 12% of the district population
is living in urban areas. The main industry of the labor force is agriculture (90%)
The major economic activity in Sereysophorn district is crop farming, employing 80% of the
total labor force. During non-farming season perhaps 20% of the local population migrates to
nearby Thailand for seasonal work. But much of the crop farming production is sold at a
reduced rate directly after harvest time because the local farmers do not have the finances to
pay workers and then wait until 3 months after the harvest when they could almost double their
returns. MIO will loan money to small crop farmers so that they can achieve a much better cash
return for their crops. Rice is the major food crop grown in the District. Sugarcane, coconut
and sesame are also major cash crops; rice is sold generally by the smallholders directly after
the three yearly harvests. Due to the rainfall seasons between November and May, half of the
crop selling farmers store crops for three to six months. There is a high variation of the price
within the region that indicates inefficiencies of the crop marketing system even though some
of the rice produced is exported to Thailand. For instance, the price for rice varies by 300 to
600 riel between Sereysophorn and the border District. Other occupations that employ a
significant number of the labor force include livestock traders, small businesses, street vendors,
professional jobs and other elementary occupations. Livestock traders mainly focus on chicken
ducks and cattle. The largest proportions of all livestock kept are ducks and chicken (23%),
followed by cattle (38%). Despite the fact that Sereysophorn is more than two times larger than
the average of the villages in Kralanh District, the distribution of occupation of the labor force
and the industry is comparable with the district figures. The Rural Rice Mill Development
Company [RRMDC] is engaged to boost organic cotton farming in the Mongkol Borei Region
and Battambong as mostly small community based companies. RRMDC is looking for
Microfinance Institutions (MFI) extending micro-credit schemes to small-holder farmers so

that they can afford to purchase agricultural inputs and improve efficiency in marketing
agricultural produce to import or export. For that purpose, MIO will customize their loan
product program to meet the specific needs of agricultural small scale business. For instance,
a loan product with a grace period and weather insurance could be an appropriate option.
2.3. Clients
Our customer profile is based on survey results explored, ―a comprehensive national
household survey focused on the financial services needs and usage across the country. The
highlighted following characteristics of the potential microfinance clients: Population 63% of
the adult population is less than 34 years and 32% are between 15-18 years [National Report],
and mainly rural-based (81%). In addition, there are approximately 3.4 Million people under
16 years. Financial will access:
*Financial literacy. This is generally low and lower still for women and for people living in
rural areas. 95% of the population has heard of loans, but 75% do not understand how interest
rates work, or collateral, guarantors, opening an account etc.; 33% have never heard of a
savings account and some they don’t know at all. Beyond loans and savings, financial literacy
is close to nil (e.g. on insurance, retirement, Automatic Teller Machines) as recently
government put to all government office to us ATM for monthly wage, but some they don’t
know how to use it. Nevertheless, 80% of the total population indicated that they would like to
know how to open an account in a financial institution. This indicates a huge need for more as
well as better communication regarding financial services with the larger population and
widespread market.
*Sources of income Recent studies have shown that 30% of Cambodian people are
unemployed and huge numbers illegally emigrate to Thailand in search of work. Only 13% of
the population is employed in the formal sector. Most people make a living from agriculture,
either by selling food crops, cattle/livestock produce. Others run an informal small business
(25%), not [directly] related to agriculture. A large majority of people (72%) go without cash
income at times. Many (28%) depend on receiving financial help from close family.
*Use of credit and loan facilities Of those that borrow, most (38%) turn to family and friends,
23% borrow using collateral (e.g. livestock). Only 9% said that they have had a loan from a
bank ;as this is a big amount for them compared to income even some need those loan from the
bank, the only way they can do is small MFIs due to the bank not interest for small account
(ex: $25) MIO loan regulations are very stringent.
*Use of savings facilities Most people with money do not save it with a bank or financial
institution. Of those who save, three out of ten say they keep money in a secret hiding place
etc... in pillows, cabinets, in a box, or any secret area in the house (similar for urban and rural).
Another interesting aspect is that of the people with a bank account (9%), many save with or
borrow from informal providers or MFIs.

3. BUSINESS ENVIRONMENT ANALYSIS
MIO microfinance intends to be a source of financial services for entrepreneurs and small
businesses lacking access to banking and related services. Microfinance is used to describe the supply
of financial services to low-income employees and to extend financial inclusion to poorer clients.
Microfinance is a way to promote economic development, employment and growth through the support
of micro-entrepreneurs and small businesses. MIO intends to extend its small loan capacity to help low
income workers achieve their goals in life. Loans can vary from $1500 USD to $250 USD depending
on the individuals wants and needs. MIO’s objective is to satisfy the unmet demand for small loans on
a much larger scale, and to play a role in reducing poverty.
3.1. Competitors
The deregulation of the financial sector (in 1995) resulted in the privatization of the Commerce
Bank Plc and the Cooperative of MFI, which were the dominant providers of rural finance.
These institutions decreased their participation in rural finance during the economic growth
period of 2003. Several private banks were established but the majority of them operated only
in urban areas and main cities. In 2002-2006, only 5% of the rural population had access to
bank services. Although some commercial banks aim to offer micro-credit to micro-clients,
from January 2003, they allocated only 0.5 % of loans to small scale farmers. Access to credit
seems to be a problem that equally affects rural farmers in all regions of Cambodia as the bank
tends to select only above average earners. As indicated by Commercial Banking in 2004 more
than 63% of the rural households faced difficulties in accessing seasonal credits for purchasing
agricultural inputs as well as the complicated process of securing a bank loan .Small loans of
around $25 are of no interest to big banks. The extension of institutional finance to rural areas
has been included among developmental initiatives taken by the government and the
development agencies to eliminate poverty. This includes some development programs of
NGOs. Since the deregulation of the financial sector of 2005, there has been an increasing
number of MFIs. In 2005, there were about 8 MFIs, and as 70 % of them are from rural areas,
only 2 % of the rural population has access to their services. The limited capacities of MFI‘s
are among the reasons why they have not managed to solve the problem of credit inaccessibility
in rural areas. The majority of the rural population still depends on informal sources of financial
services, which are sometimes not reliable enough to make a significant impact on income
improvement and asset accumulation. A summary of all relevant MFIs in Cambodia was
provided by government and approved by Ministry of National Bank of Cambodia [NBC]. As
well as the most influential NGOs there are also some minor institutions known as community
based organizations operating throughout the country. In Siem Reap the indicated total
estimated demand for microloans is about 10 thousand million riel; the total Credit Operators
equals around 13 institutions. Commercial banks and Community banks together share only
customers living in City and urbanites, while many NGOs which accounted for 2,200
customers were forced to close by the government along with many much more minor social
organizations with limited resources for their microfinance activities. The largest single player
in the NGO category with a market share of 15% , which is mainly due to commercial and
trade customers as classified by Investment Bank. This information is supported by the Bank
of Cambodia‘s records. There are about 20% mainly rural based population in the whole
country serving an estimated client population of about 130,000, most of whom are savers. It

is important to note that cooperative institutions in Cambodia have had a very bad history as
most were associated with financial mismanagement to the extent that they lost peoples trust
and confidence. The cooperative based financial institutions therefore could not make any
meaningful impact in the lives of their members as they operated at very small scale due to
funding constraints‖. Some improvements have occurred since the government implemented a
special program to resuscitate the cooperative based financial institutions‖ (2015). It will take
time however, before significant impact becomes apparent. Other suspicious providers of
financial solutions to the poor are moneylenders. According to the NBC study, 10% of the
Cambodian adult population has access only to informal financial services. Some studies have
emphasized the need to consider the use and the amount of credit offered to the clients when
evaluating the impact of the MFIs on poverty reduction. It was found that the higher the amount
of a loan or the frequency of borrowing, the higher the labor productivity and the household
welfare of the recipients. However, the amount of credit, which for the case of the MFIs
increases with the frequency of borrowing, may not necessarily lead to poverty reduction. This
is so because some poor borrowers continue borrowing from MFIs to repay loans from
moneylenders, and hence are trapped into the [debt vicious cycle] (MIO Research). This is an
indication of increased vulnerability and poverty. Microfinance Institutions in Cambodia with
a special focus on Commercial Bank and a few Community/regional banks. MIO plan ahead
to train an business consultants to act as credit agents to boost our relationship with customers
and the informal sector.
Microfinance Institutions in Cambodia
Bank MFIs NGOs Community
Moneylender
Total
35 25 165 are operating
as moneylenders
no report 225
*** This figure includes all NGOs operating as moneylenders who will be closed by the government in
2016 due to stricter government regulations on micro finance.***
3.2.Opportunities and Threats
Siem Reap The city has fewer MFIs than the average number per region in a whole country.
The Cambodian economy has grown from 6.29 billion $ to 15.25 billion in the last 7 years
[2006-2015]; signs of this growth are the reasons behind the startup of MIO plan. The
designated target areas around Siem Reap are remarkably unrepresented. In total, there are
17 MFIs in the district serving around 40% clients. The total demand of the adult population
who have no access to financial services is 23 % out of the regions adult population of 1.6
million people, according to the MIO research of people living in Siem Reap, and the other
three target areas of the adult population do not have any access to financial services in the
local bank even yearly demanded around 4000 million riel of the lowest and under average
level needs. The remaining of people who have access to financial institutions are served by
13% MFIs and NGOs as well as of few commercial Banks who are involved in the
microfinance business. Acleda bank has a large market share and branches are located in
every district in Cambodia, many being in the populated Siem Reap City. Based on these
facts, the estimated demand of micro-entrepreneurs who are currently out of the scope of
reliable financial institutions is at least 10,000. They represent the most vulnerable and poor
people in the target areas that will not be considered by Acleda because of insufficient
collateral. Initially using the Credit Operator model of choice microfinance, MIO strengths

are serving the most vulnerable and poor people who cannot secure loans from financial
institutions.
Apart from being excluded from the formal financial sector, the limited number of
commercial banks in Siem Reap might result in a limited amount of money available to lend
in this district. To avoid these struggles, MIO needs sufficient capital to extend their business.
The main issues serving financial demand in the rural areas are poor infrastructure and low
population density. Market access for small scale farmers and small traders is given in both
directions. The branch will be open in all municipalities which require financial services.
Located in the regional capital, MIO will be able to replicate their lending program to other
rural areas. Out of the 4,000 people, who have no access to financial institutions, the demand
for microcredit is estimated at 1,200 micro-entrepreneurs. MIO expects to lend to more than
80 % of these smallholders within two years, from 2015 to 2017. After that, MIO intends to
replicate their program to other wards as commercial bank after five years.
4. CORROBORATION AND PARTNERSHIP
4.1. Global Network
Global Advisory Boards (GAB) Shaping a vision is an ongoing effort, necessitating the
oversight of the MIO Global Advisory Board. In her role as the chair of MIO Global Advisory
Board, Miss Mihoko Onozawa works in collaboration with co-chairpersons in each individual
country who coordinate the linkage of international business with a Japanese international
company, and institutions in their respective countries, currently Philippines, Indonesia,
Singapore, Spain and the Netherlands. Mr.Sokun Chan Dara works in collaboration with co-
chairperson and in post management in business administration for local and international
company, and founder of the established MIO program and MIO Mega Groups.
4.2. Cooperating Partnerships
MIO relies on a wide-ranging web of partners across the globe who are committed to a
common purpose and are willing to invest resources, money, time and talent - to ensure its
success. MIO core vision is to open the door for all Cambodians to have access to micro
finance. MIO is joining the efforts of the Cambodian local and central government, especially
with the department of Poverty Eradication and Economic Growth, to serve grassroots people
specifically, by helping to implement the policies so that we serve the interests of the citizens
and underprivileged areas in line with our government’s vision. MIO is the implementing
agency responsible for coordinating and monitoring the flow of funds on behalf of MIO
donors. The other relevant government ministries will ensure that the people of Cambodia are
served according to the vision and agenda of the Cambodia government that provides
professional development investment services. MIO’s aim is to mediate social investments in
low-income regions around the world, with a goal of alleviating poverty. MIO aims to become
the leading social business agency in Cambodia. In the effort to avoid duplication of services,
and to acknowledge the need for a multi-dimensioned approach to achieve success, MIO
continues to build relationships with existing national and international organizations and bi-
lateral development donors. Also, financial institutions in the country, specifically the
Cambodia Investment Bank Groups, and Self Project. have shown great interest in MIO‘s
programming.

4.3. Regulatory Policies
The following regulatory policies play an important part in shaping MIO‘s institutional
environment: The National Bank of Cambodia Policy (NBC), enacted by the government in
1996 and incorporated in the Banking and Financial Institutions Act 1999, aims to enable the
increasing microfinance industry to become more sustainable and reliable. With this policy,
the government was relieved of its responsibility as the key player in delivering financial
solutions to the poor. Since then the formal private sector has been the main provider of
microfinance services. Government ruling ensures that companies apply these financial
principles in running their businesses. Beside to the NBC following other policies are in place.
The National Strategy for Growth and Reduction of Poverty. These strategies are executed
by the department of Poverty Reduction and Economic Growth with corporate local and
international NGOs. Their targets are as followed:
 Increasing economic growth
 Reduction of income poverty
 Improving the quality of life
 Social well-being
 Strengthening governance and accountability
 Small and Medium Enterprises Development Policy
 Ministry of Industry and Trade
4.4. Transformation into a Microfinance Company (MFI)
The institution is considering formalization when it passes the capital requirement from board
of traders. The board evaluates the opportunities and risks associated with the different
options available; in the hope of attracting a significant flow of client savings and domestic
and international debt and equity funds, MIO is considering changing their legal status to that
of a formally licensed financial intermediary in year 2021, initially with one branch and
progressing to two in the future. The Financial Committee, which works under the governing
board, evaluates the costs that are likely to result in the context of banking regulatory
structure. The Financial Committee will incur both up-front and ongoing costs, and these
costs are likely to be substantial. The evaluation will entail costly feasibility studies of the
alternatives and extensive consultations with lawyers and accountants. Registering as a
formal financial institution involves legal and filing fees. Once MIO attains a formal status,
the regulations governing the licensed financial intermediaries will lead to greater
professionalization, for example, through conformity to more rigorous standards of
provisioning and asset valuation. Regulations may also impose significant constraints,
restricting the hours and days of operation, requiring advance approval for opening new
branches, and setting requirements relating to the compensation, hiring, and termination of
employees. A microfinance institution that changes its status will generally face significant
additional supervisory requirements, such as an internal audit department and expanded
reporting. For that purpose, MIO is considering hiring an internal auditor and an additional
accountant in 2017. Significant capital reserve requirements are necessary, for example,
50,000.00 US dollars in the transformation year and 100,000.00 US dollars when MIO will
open other branch in Kompongthom under legal status. Most significantly, MIO operates as
a tax exempt nongovernmental organization but will lose that status and have to begin paying
taxes on its earnings when they become a formal limited institution.

5. INSTITUTIONAL ASSESSMENT
MIO is still in a startup phase and has no historical data to be assessed. The following
institutional capacity model is carried out of the market study and the environmental analysis.
It is a five year projection plan, considering the MIO milestone transforming to a microfinance
company in 2020, to be allowed to collect savings for the purpose of becoming self-sustained
at the end of the projected period.
5.1 Credit Policy
Context Clue
MIO was founded by Mr. Sokun Chan Dara and Miss Mihoko Onozawa, in order to contribute
to Cambodia and offer rural macro-economics to people of all levels. These loans can be
secured with both collateral and non-collateral. This key is existing adherent to the government
program for aiding family economic systems at all levels.
Production
MIO is encouraging the use of both currencies; Riel money KHR (Cambodian Money) and US
dollars ($). Both currencies will be offered as loans by MIO to produce a suitable product for
its market. Collateral and non-collateral backed loans will be offered and spread into the rural
and urban areas. Our aim is to enrich the local population by offering them financial alternatives
to normal banking services which they lack access to.
5.2 Unsecure Loan / None Collateral
Unsecure loan/non collateral is one of the product which more useful in market of a
developing country; these loans are popular for lowest income customers and can be either as
a personal loan or group loan.
*personal loan with non collateral was limited for family macro-entrepreneur:
-Maximum of loan from: 50 US dollars – 500 US dollars
-Loan requested over limited project: 50 US Dollars – 700 US Dollars
-Loan for: Person or family applications
-Re-payment method: Repayment of principle and interest rate (follow payment schedule)
-Re-pay Returning: Every two weeks or monthly
-Collaborative: Requesting person, collaborative in group borrower, and guarantor which
follow to MIO regulation of basic term and condition in loan process.
-Collateral Document: Original of identify cards, permanent staying pass book or/and other
document shall be valuable.
*Group Loan joins as group with limited amount for family business establishment
-Maximum of loan from: 50 US Dollars – 320 US Dollars
-Loan for: from 03 to 05 persons join as group

-Collateral Document: Original of identify cards, permanent staying pass book or/and other
document shall be valuable. [Note: Verification document from chief office or village office
are not acceptance]
5.3 Secure Loan / With Collateral
This commercial loan is formed to be safe and secure for medium amount with collateral,
there are two types of these loans..
*personal loan providing with collateral was limited for family macro-entrepreneur:
-Loan for: Person or family applications
-Collateral Document: Original of identify trust document such as hard/soft title of land or
house, and all requirement are acknowledged by local authorities, village, commune and
cadastral office of land management or/and other document shall be valuable.
*Group Loan joins as group with limited amount for family business establishment, the
evaluation of collateral is required the equal of loan disbursement cost as among of group
where the only one member is have right on collateral as other need to use this guide line as
subordinating in loan process. MIO will accept more for collateral material from grouping.
-Loan for: Grouping from 3 to 5 person
follow MIO’s regulations of basic term and conditions in the loan process.
-Collateral Document: Original of identify trust document such as hard/soft tittle of land or
house, and all requirement are acknowledged by local authorities, village, commune and
cadastral office of land management or/and other document shall be valuable.
5.4 Interest Rate
MIO was first acknowledged in running as Micro Credit Operator in whole of it market
channel, to capture of local market and flow to MIO action plane from 2015 to 2019. The
interest rates are set to suitable price even recently most of the bank form Hong Kong are firmly
to decline the interest rate. This way is destroying market not better way of economic of
competition. National Bank of Cambodia [NBC] is open door for this final year before credit
operator is going to develop itself to be Micro Finance. As reporting, if credit operator is run
the same rate of micro finance those companies who had this business will not survive or
compensate to admin fee such banking or tax. Finally, of MIO step out the products into every
part of country as following rate.
Unsecure Loan / None Collateral small commercial loan
-Weekly 2% decline interest rate (principle and interest rate)
-Twice a month 4% decline interest rate (principle and interest rate)

- Monthly 8% decline interest rate (principle and interest rate)
Secure Loan / With Collateral medium commercial loan
-Weekly 1% decline interest rate (principle and interest rate)
-Twice a month 2% decline interest rate (principle and interest rate)
- Monthly 4 % decline interest rate (principle and interest rate)
The maximum loan period starts from 16 to 52 weeks. MIO is also offering emergency loans
and consignment partnerships with other companies; small or medium, or to families who
wanted to build a house or buy a small house. Cambodian is a poor country and the gross
domestic product [GDP] is $1200 to $2400 for one person and expectation in 2020 is $3000.
MIO is plan to meet the monthly return of re-payment between $25 up to $75; which afford
able to deduction to net profit of a Cambodian people not over 60% of 100% monthly in-come.
Calculation of decline interest rate
 I = Interest Receivable
 P = Principle
 i% = Interest rate
 n = Number of installment
𝐈 =
𝑷 𝑿 𝒊% 𝑿 ( 𝒏+𝟏)
𝟐
MIO Board Director maintains the right to change the condition
6. Returning of Loan Re-payment
MIO re-payment methods are following both collateral and none collateral payments as
scheduled. The stringent rules of MIO’s evaluation are in place to ensure 100% loan recovery.
The study of income and expense evaluation or customer’s cash flow is instrumental in
securing a loan. Write off with penalty 50% will be subject between loan amounts 50 USD –
250 USD of final due principle amount; 25% subject of the amount 250 USD – 500 USD, and
10% between amounts 500 USD – 2500 USD. This admin cost is subjected to the write off
before schedule time and period. MIO Board Management will alternatively change or update
this process.
6.1 Re-Disbursement Loan
MIO stringently examines and evaluates new loan for customers, such as livestock or business
expansion. MIO regulates at least 70% returning; recovering of loan will be considered and
decisions made by considerable analysis. The background and history also be considered before
new loans are made available.
6.2 Penalty & Late Re-payment
In the case of late payments the following measures will be taken to recover the original loan.
Minor Default failure to repay or late repayment, or inadequate payment around 30 days are
counted as a minor default.
Major Default failure to re-pay or late re-pay, and paid inadequate pay over 30 days are
count into major default.

Penalty Late re-payment are notice into penalty 1% of principle interest rate due amount,
failure notice after 2 day in schedule is subjected to be late.
 P = Penalty
 R = Repayment in the period
 i% = Interest rate
 n = Number of day of re-payment
 N = Number of day of an installment
𝐏 =
(𝑹 𝑿 𝒊% 𝑿 𝐧)
𝑵
Board director maintains right to change the formula
Cancellation of Penalty Branch manager of MIO is allowed to report any cancellation on penalty
regarding late repayment with proof from chief credit officer and credit agent with document
support.
6.3 Customer Evaluation
The evaluating of MIO is still in a startup phase and has no historical data to be assessed. The
following institutional capacity model is carried out of the market study and the environmental
analysis. The condition of the customer to receive loan from MIO must have the permanent
address in Cambodia; age from 18 years old to 60 years old and under the following condition:
*Good character, behavior and good name in local area
*Ensure to provide all information to MIO with true and completed
*Not involvement with any illegal act or crime
*Clearance of occupation or business in local where MIO operating
*No plan to move or change the house
*Condition is under 5Cs formula
Character MIO credit agent with observe and study on information and background for each
customer, behavior, intention of re-payment on debt, local social connection with chief village or
chief commune.
Capital Evaluating on source of financing, business, capacities, and source in-come earnings that
is the data to analyze of what the customer is going to use loan for?.
Cash flow/Capacity Customer evaluation on cash flow process from their occupation every day,
weekly, monthly or term as the flexibilities of truth and completed information to measure the
demanding of loan recovery in period of time and abilities to repayment.
Collateral Evaluating This is the direct inspection on site seeing, and observe as REALTOR:
- Right collateral and trust document from local authorities
- Estimated the value of collateral on site and area as market price
- Abilities to sell collateral
- Location of collateral
- Type of collateral
- Ownership of collateral
- Risk of collateral
Condition The verification on customer focusing about source of income and risk managing, risk
of market, risk of financing, risk of collateral, risk on occupation, which easily effect on returning
as scheduled. These 5Cs formula is formed to find out the strong point and weak point to evaluate
the debt resolution and returning on time. MIO keep and maintain good conditions with partners
and customers on evaluation of properties and source income to avoid double loan disburse with
other organization or bank.

MIO CREDIT OPERATOR INSTITUTION
rrÂss
Customer Group Evaluation Form
Customer address Village....................commune..........................district................city/province.............. ...
I. Customer information
1. Group Leader (Account No. ................................................CID.....................................)
Collateral Properties Type I Type II Type III
Land/House type
Period of Holding Equity ..year from Legacy bought ..year from
Wall & Roof
Size M x M = M2
M x M = M2
M x M = M2
Land size M x M = M2
M x M = M2
M x M = M2
Title Holding Equity Type ............................................... ............................................ ...........................................
Collateral status ……………………………………… ……………………………… …………………………………
Price
Capacity Repayment (2 weeks monthly) Occupation Amount
In-come of part (A)
In-come of part (B)
Expense in occupation (C)
Net profit from occupation (D) =(A+B)-(C)
Cap. Repay = [net profit(only in-come which affordable to re-pay)/Term of payment (weekly,2weeks, monthly)]x100
=(....................../.....................)x100=...........................  > 160% (not provide)  < 160% (provide)
2. Group members information ៖ (Account No.................................................CID :.............................)
Land/House type
Period of Holding Equity ..year from Legacy bought
Wall & Roof
Size M x M = M2
M x M = M2
M x M = M2
M x M = M2
M x M = M2
Price
In-come of part (A)
In-come of part (B)
Land/House type
Period of Holding Equity ..year from Legacy bought ..year
Loan Circle........................................

Wall & Roof
Size M x M = M2
M x M = M2
M x M = M2
M x M = M2
M x M = M2
Collateral status ……………………………………… ………………………………… …………………………………
Price
In-come of part (A)
In-come of part (B)
Land/House type
Period of Holding Equity ..year from Legacy bought
Wall & Roof
Size M x M = M2
M x M = M2
M x M = M2
M x M = M2
M x M = M2
Price
In-come of part (A)
In-come of part (B)
Land/House type
Period of Holding Equity
..year from Legacy bought
Wall & Roof
Size M x M = M2
M x M = M2
M x M = M2
M x M = M2
M x M = M2
Title Holding Equity Type ............................................... .............................................. .........................................
Collateral status ……………………………………… ……………………………………… ………………………………
Price
In-come of part (A)
In-come of part (B)

II. Suggestion of evaluation officer
BM recommendation ,  CCO recommendation
....................................................................................................................................
........................................................
.................Date>>>>>>>>>>>>M>>>>>>>>>>>>>Y>>>>>>>>>>>>>>>>>>
Signature
Name>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Credit Agent Suggestion
...............................................................................................................
...............................................
.................Date>>>>>>>>>>>>M>>>>>>>>>>>>>Y>>>>>>>>>>>>>>>>>>
Signature
Name>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
6.4 Risk of Loan
The MIO overview is to encourage the lowest and average living standard to the market as MIO
standards differ from normal bank lending services. Loan qualities are measured by risk of loan
(%PAR) and percentage of loan returning.
𝑃𝐴𝑅 (%) =
𝐹𝑎𝑖𝑙𝑢𝑟𝑒 𝑡𝑜 𝑟𝑒𝑝𝑎𝑦 𝑙𝑜𝑎𝑛𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 (𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑙𝑒)
𝑇𝑜𝑡𝑎𝑙 𝑂𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔 𝐵𝑎𝑙𝑎𝑛𝑐𝑒 (𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑙𝑒)
𝑋 100
Setting standards for assessing the quality of the following
- PAR 1% : The process is well done
- PAR 1% to 2% : The process is good
- PAR 2% to 3% : The process is average
- PAR 3% to 5% : The process need to be established
- PAR over 5% : The process is fail need to be planed immediately for recovering
Repayment Returning failure of scheduled loan returns as contracted are measured by the
following method:
𝑅𝑒𝑡𝑢𝑟𝑛𝑖𝑛𝑔 =
𝑇𝑜𝑡𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝑙𝑜𝑎𝑛 𝑟𝑒𝑡𝑢𝑟𝑛𝑒𝑑
𝑇𝑜𝑡𝑎𝑙 𝑙𝑜𝑎𝑛 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
𝑋 100

7. CREDIT AND SAVINGS PROGRAM
Defining MIO’s Financial Products
At the end of 2018, MIO started a pilot program and offered a single loan product, Solidarity
Small Business Loan, and had no voluntary savings products. The institution required all
borrowers to maintain monthly compulsory savings, which is treated as part of the loan
product. According to the pilot results, MIO intends to follow up with this loan type but plans
to introduce new loan product in year four when they extend their business to Battambang
province. The product should be customized based on the needs of agricultural small scale
businesses. Because of the late introduction and the very low financial impact, it is not
designed as an individual product in the existent business plan. MIO intends to convert to a
nonbank financial institution in year three, which will make it eligible to collect savings
deposits. Its management expects to offer two voluntary savings products: a voluntary savings
account, called ―Passbook Savings that replaces the current compulsory savings, and a range
of term deposits to be modeled as a single product called ―Fixed Deposits.
Setting MIO’s Loan Amounts and Repayment Conditions
At the beginning of 2019, MIO will offer a single loan product whole countrywide
throughout Cambodia. Clients are required to form groups of five, and each client will receive
a loan amount based on their need. In accordance with the Cambodian Bank model, MIO
decided not to require group guarantees. That means that no group member will cosign for
the others. All loans require biweekly payments. MIO will not offer a grace period on
repayments. Contractual loan terms varied between 8 and 12 months, it is projected that in
general clients took an extra month to fully repay their loans. Average loan amounts are
expected to increase annually by the rate of inflation. Initial annual client retention rate is to
be estimated at 60%, and will increase gradually up to 85% from year three to five.
Defining MIO’s Compulsory Savings Requirements
MIO require clients to save 20 % of their requested loan amount before disbursement. The
primarily purpose of compulsory savings is to cover any default risk. These savings will be
held at the Foreign Trade Bank (FTB). Because of the fact that MIO didn‘t pass the capital
requirement from the National Bank of Cambodia as of yet, the company is not legally
allowed to hold savings deposits. When MIO converts to a nonbank financial institution in
the third year of its strategic plan, it intends to eliminate the compulsory savings requirement.
In month 28, MIO will replace compulsory savings with their voluntary Passbook Savings
product and their Fixed Deposits.
Setting MIO’s Pricing Structure
MIO charges 30% annual interest using flat balance calculations. MIO also charges an upfront
commission fee of 1% on all loans at the time of disbursement, compared to the disbursement
MIO will charge as well as insurance fee which limited by board management and board
community and all will be accomplishment to loan size. All lending has been transacted in
local currency, with no indexing to external values. The management decided to take a lower
interest rate than the market average, which would attract more customers at the beginning
and is in accordance to the Poverty Reduction Strategy of the Cambodian government. If the
profitability projections turn out to be unacceptable, it will re-price the loan product again.
Setting the General Parameters for MIO’s Compulsory Savings Products
The compulsory savings pay the depositors interest at 10% annually. The clients do not have
an individual saving account. MIO collects the savings from their clients and deposits it as

accumulated amount on their business account at the FTB Bank. MIO pays out the interest
(minus a commission of 2%) when the loan is fully repaid or in year three when their clients
open voluntary saving accounts. Access to the compulsory savings is blocked while the client
has an outstanding loan and can be seized by MIO if the client fails to repay the loan. The
funds are not otherwise available for MIO‘s use.
Defining MIOs Voluntary Savings Products
Starting in year three, MIO plans to begin offering two voluntary savings products. Passbook
Savings will pay interest ranging between 2% to 6%, depending on the deposit amount, with
an average rate expected to be at 4%. Fixed Deposits will pay interest ranging between 7%
and 10%, depending on the term of annually set, with the average rate expected to be 8%.
These prices are above the current market rates. MIO decided that a specific percentage rate
of any savings deposits be placed in short-term reserve deposits, to handle ongoing depositors
withdrawing, with the rest available for on-lending at the institution‘s discretion. MIO‘s
management expects to establish a reserve of 40% of Passbook Savings and 25 % of Fixed
Deposits.
7.1. MIO’s Marketing Channel
MIO’s Initial Balances
MIO projects that it will have 9000 active clients at the end of 2017, all with Solidarity Small
Business Loans. Referencing MIO‘s balance sheet, it is determined that MIO will have a
gross outstanding balance for its single loan product of 1,500,000 US Dollars at the beginning
of the five-year projection.
Projecting MIO’s Active Loans
MIO‘s market study showed that the institution has the potential to grow from 300 to 9,000
clients in the current market area in Cambodia by the end of its five-year plan. In addition,
MIO intends to open branch office, in other provinces, in November of 2015. This branch is
expected to expand to 1,500 clients in each branch by the end of 2017, bringing the total
number of clients to 10,000. The projection models multiple branches using a consolidated
approach. It had chosen to project credit activity by the number of active clients rather than
by the number of new clients each month to calculate a reasonable cycle time for each
segment.
MIO’s Projected Number of Active Loans (2010 - 2014)
Branch Initial 2016 2017 2018
Siem Reap Head Office 500 1500 2000 2500
Kompong Thom 250 1300 1700 2000
Kompong Cham 0 1500 1700 2000
Battambong 0 1500 1700 2000
Prey Veng 0 1200 1500 2000
Kandal 0 1200 1700 2000
Phnom Penh 0 1500 2000 2500
Svay Rieng 0 1500 2000 2500

Total 750 11,200 14,300 17,500
MIO Staff to handle Operation
No Province Credit Agent Chief Credit Agent Teller Admin BM Security Cleaner
1 Siem Reap 12 2 2 1 1 1 1
2 Kompong Thom 10 2 2 1 1 1 1
3 Kompong Cham 12 2 2 1 1 1 1
4 Battambong 13 2 2 1 1 1 1
5 Prey Veng 10 2 2 1 1 1 1
6 Kandal 10 2 2 1 1 1 1
7 Phnom Penh 24 4 6 4 2 4 2
MIO’s Projected Term Loan Portfolio
MIO Project Income
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Capital
Siem Reap Kompong Thom Kompong Cham Battambong
Prey Veng Svay Rieng Phnom Peng Kandal
Capital
Expected Net In-come0
1,000,000
1/1/2016
3/1/2016
5/1/2016
7/1/2016
9/1/2016
11/1/20…
1/1/2017
3/1/2017
5/1/2017
7/1/2017
9/1/2017
11/1/20…
1/1/2018
Expect Net In-come
Capital Expected Net In-come

Analyzing MIO’s Customer Retention Rates
Confident that the Cambodia Bank model and the special trained staff will address their
clients ‘needs, MIO‘s management expects a relatively high customer retention rate from
80% up to 90%. The management reviewed their loan-demand projections. They saw that
MIO will need to attract about 15,000 new clients in the next five years to reach its expansion
targets, and that only 3,000 of these clients will drop out during the five years. Therefore,
high client retention will need to be a primary goal in the coming years.
Projecting MIO’s Compulsory and Voluntary Savings
At the end of 2017, MIO‘s borrowers would have 1,000,000 US Dollars of compulsory
savings on deposit at NBC- an amount projected to grow to 56,250 USD by the end of year
two. When MIO begins offering voluntary savings in their branch in Battambong in the first
quarter of year three, management estimates that 60% of borrowers will transfer a significant
portion of their compulsory savings to the new voluntary savings accounts, either to a
passbook or to a deposit saving account. For the passbook saving account, management
estimates an initial average balance of 10,000 USD that will grow to about 750 USD at the
end of year five. The same applies to the Term Deposit. The initial average balance is
estimated significantly higher and accounts for 70 USD increasing to 118 USD at the end of
year five. The number of savers is predicted to be significantly lower. This is because of the
fact that customers take time to save sufficient capital reaching the minimum deposit
requirements of a Fixed Deposit account. In addition, the savers will have limited access to
their capital for an agreed time period. As client confidence and awareness increase, the
percentage of borrowers with voluntary savings is projected to increase up to 85% in year
five. In addition, MIO expects non-borrowers to open Passbook Savings and Term Deposits
accounts, starting in year three as well. For Passbook Savings, MIO estimates 90 new
accounts a month during the first half of year three and then a 5% monthly increase in
accounts from the beginning of the second half of the year until the end of the five year plan.
For Term Deposits, the initial number of savers is estimated at 10% of the borrowers in year
three, increasing slightly with 1% in year four and 2% in year five.
7.2. Board and Management
MIO embraces the organizational leadership model with a leadership team capable of formulating
and shaping a coherent vision combined with a management team skilled in implementing and
rejuvenating the vision over time. This team is comprised of a Chief Executive Officer working
closely with Governing Board chair, Advisory Board chairs, advisors and members committed to
constructing and executing the strategies. The Managers are responsible for the implementation
and management of the vision, specifically in the areas of microfinance, education, social
business, research, and entrepreneurial education. The management of the corporation is vested
in the Governing Board.
Governing Board
Board members are nominated and appointed for staggered terms of three years. Board members
serve a maximum of three successive terms; initial terms would be for three, six, on nine years.
A full board meeting would occur annually in the month of every month supplemented by

quarterly conference call meetings. Every year the annual board meetings take place in Siem
Reap. The board members represent groups deemed critical to managing a micro‐finance
organization, banking, legal, accounting, education, pastoral, business, organizational
development, government, financial planning, and women are well represented on the board.
Three members come from Head Office, in which one of them represents MFI clients of the MIO.
The Board delegates responsibilities for day-to-day operations to the corporation‘s Chief
Executive Officer and Executive Director and Committees. The board receives no compensation
other than reasonable expenses.
Founders
Ms. Mihoko Onozawa is the Founder and Executive Director of MIO. Born and raised in Europe,
she has worked in Italy, Spain, and Asian countries. Most recently, Ms. Mihoko Onozawa formed
and operated All Nations, a program serving the spiritual, economic and social needs of a
culturally, racially, and economically diverse community, particularly investment. At the same
time, Ms. Mihoko Onozawa served as strategic planner, and leadership trainer. Her experience in
Indonesia, Philippines, Thailand and South India are crucial to help MIO attain its goals.
Mr. Sokun Chan Dara, Chief Executive Officer and founder of MIO program obtained his degree
from PUC [Pannasastra University of Cambodia], where he devoted much of his time to studying
the sociological patterns of bonding and bridging social capital. He holds two degrees in
international relations of communication from PUC University, Cambodia, also taking classes in
South East Asia [USEA], he has participated in strategic planning of General Management,
leadership development, and organizational management seminars and teaching. Chan Dara is the
Co-founder and President of MIO. He became internal audit manager in 2012 while working as a
professor in English Institute in Siem Reap. In addition to his teaching experience, Chan Dara has
worked in post hotel international management team, and international business runner, In 2015,
he found the project of credit operator and co-cooperate with Ms. Mihoko Onozawa. To pursue
post-graduate studies where he assumed a position in the development office in exchange for a
salary and free tuition Dara still continue in Finance and Banking study. During nearly 10 years
of working with international companies and organizations from Asia and Europe, Dara assisted
thousands of clients to reach satisfactory goals.
Co-Chair
Kiry Sokun is a Social Business and Microfinance Co-Founder. He has worked for 10 years in
varied executive functions for NGOs and consultancy for business literacy. His most recent
positions include a Credit and Risk Manager and Regional Manager. Kiry Sokun coordinates
MIO‘s Advisory Board. MengSeng Sok coordinates the vision of MIO in business development
program. Both of them are holding BBA degree from Build Bright University (BBU), and
currently pursuing a Master Degree in economics and finance. Kiry is a researcher on MIO’s
economics for Financial Research and Finance Department, and has been a researcher with the
Department of Finance in Cambodia. Saren Khek is Credit and Branch Manager for supporting
MIO head office and branch strategies. He has worked for CMK Bank and Sahakren Plc for 11
years in various management posts. His most recent experience is Branch development and social
training connection.

National Advisory Board Cambodia
The Board may create committees as needed, such as community Relations, Cultural Outreach,
Research and Publication. There are two outstanding Committees: Executive and Finance
Committee. The Governing Board appoints all Committee chairs who must be members of the
Board.
The Executive Committee
The Executive Committee reviews the performance of the Executive Office. Except for the power
to amend the Articles of Incorporation and Bylaws, the Executive Committee have all power and
authority of the Governing Board in the intervals between meetings of the Board of Directors,
subject to the directors and control of the Board of Directors. The Executive Director is
responsible for hiring and supervising. The Executive Committee shall serve as a vital committee
and is responsible for developing a personnel policy.
Finance Committee
The Treasurer is chair of Finance Committee, which include three other Board members. The
Finance Committee is responsible for fiscal control, development and reviewing expenditure
procedures, and a fundraising action plan and organization annual budget. The Board of Directors
must approve the budget and all expenditures must be within the budget. Any major change in the
budget must be approved by the Board of Directors or Executive Committee. The fiscal year shall
be the Calendar year. Quarterly reports are required to be submitted to the Governing Board
showing income, expenditure and pending income. The financial records of the Corporation are
public information and shall be made available to the Governing Board members and the public.
7.3. Institutional Resources and Capacity
Defining MIO’s Staffing Categories
MIO refers to members of its field staff as ―Loan Officers. The company opted for salary and
benefit adjustments at the beginning of each fiscal year, because MIO's board generally grants an
increase equal to the inflation rate. In addition to its loan officers, MIO considers its ―Credit
Supervisor, ―and Operations Manager part of the Branch-related staffing. All other existing staff
are considered Head Office staff. In November 2015, when another branch office is to be opened,
MIO will shift the operations manager or regional manager to the position of branch manager for
operation auditing to all process and regulation of the old branch. So the job title includes both
positions - "Operations Inspector/Branch Manager”. Starting in year three, when savings products
are introduced in Cambodia, that branch will add the following positions: ―Teller and ―Security
Guard. One year later, when a new branch is opened in Battambong, additional Tellers and
Security Guards will be hired. The Chief Credit Officer will also be hired in year four, when the
second branch is to be opened. His role is to empower the sales staff and to review the credit
decisions. A large branch like Siem Reap that will need more than 35 employees should be
supported by additional supervision functions. For administrative-level staffing, MIO entered the
following positions: ―Executive Director, ―Operation Manager, ―Chief Accountant, Assistant
Accountant, MIS Supervisor, ―Internal Auditor, Human Resource Manager, ―Saving Director,
―Secretary, and Driver. (For detailed job specifications see attachment).
Defining MIO’s Operational Expense Categories

For Branch-related operational expense categories, the staff specifies ―Rent, ―Utilities,
―Transportation, ―General Office Expenses, ―Staff Training, ―Borrower Training, and
―Repairs, Maintenance and Insurance. For Head Office operational expense categories they enter
―Rent, ―Utilities―Transportation, ―General Office Expenses,―Repairs, Maintenance, and
Insurance, ―Professional Fees and Consultants, ―Board Expenses, and ―Staff Training.
Projecting MIO’s Branch Resources and Capacity
Projecting MIO's Branch-related Loan Loss Provisioning MIO estimates that its portfolio, at risk
for more than 30 days, will be 5%. It projects write-offs of 2% of its portfolio and decided to use
this write-off rate for all future projections. The loan loss reserve is to be estimated by KHR
1,000,000.
Defining MIO’s Branches
MIO plans to open its first branch in KompongThom from 1st
of November 2015, and indicates
that a second branch will open in the beginning of February 2016 in Kompong Cham.
Setting the Links for MIO’s Loan Officer Projections
MIO's lending methodology permits experienced field staff to work with a caseload of 150 clients.
Loan officers generally take 12 months to move up to the senior level and a full caseload.
Beginning staff generally work with 25% of a full caseload, secondary staff with 50%, and
intermediate staff with 75%. MIO generally hires new credit officers in groups of at least ten in
order to coordinate staff orientation and training. At the beginning, MIO will have 8 loan officers,
one of whom will have been with MIO for 12 months (i.e., senior level), and one which will be
newly hired. Projecting MIO’s Automated Branch-related Staffing Levels at the beginning, MIO
intends to start with ensure efficiency and to serve with a high grade of safety and quality, the
company planned to hire:
*One Chief Credit Officer for every 8 Credit Officers, starting after a total of 12 loan officers are
hired;
*One branch manager
*One Admin for each branch that opens
*One teller for every branch that offers voluntary savings
*One security guard for each branch that offers savings,
Staff Position Monthly Salary (Benefit are included)
Credit Officer Entry level USD 175 (Entry level)
Credit Officer Experience USD 215 (Passed probation)
Teller USD 150
Admin USD 150
Operation/Branch Manager USD 550
Security Officer USD 120
Cleaner USD 100

Starting in year three the cost for each position - including salaries, benefits and payroll taxes - as
of December 2015 is estimated in the following table. The model will automatically increase the
salaries by the inflation rate in the first month of each fiscal year.
Projecting MIO’s Branch-related Other Operational Expenses
To generate projections of MIO's Branch-related other operational expenses, the company
distinguished the Branch-expenses from administrative-expenses categories opting for automated
projections as they enter the following Links:
Category Expense Amount USD Inflation Adjustment
Rent USD 250 – USD 450 Monthly
Utilities USD 100 Monthly
Transportation USD 500 Monthly
General Office Expense USD 200 Monthly
Repairs, maintenance, insurance USD 50 Monthly
Staff Training USD 200 Monthly
MISC Expense (%) 8% other operational Monthly
Entering Initial Balances for MIO’s Branch-related Fixed Assets
MIO entered initial balance information for the following Branch-related fixed assets, as of the
end of 2015:
Asset Purchase Amount Remaining Life
3 computer USD 790 3
Assorted office furniture USD 470 3
Employee Grouping USD 300 12
Printer USD 175 1
Planning MIO’s Fixed Asset Acquisitions at the Branch Level
MIO decided to link each fixed asset category to a key output of the model in order to
automatically generate its fixed asset acquisition schedule. They estimate that a branch office
needs a computer for every four Branch staff. MIO plans to buy three computers for each branch.
MIO plans to purchase one set of general office furniture for each branch office. They linked
employee furniture groupings to the number of Branch staff, using a ratio of one unit of furniture
for each Branch staff person. For other assets categories they specify an―MIS system to be
introduced as part of MIO information controlling.
Projecting MIO’s Administrative Staffing Levels
At the beginning of 2018, MIO's administrative staff will consist of an executive director, a chief
accountant, a secretary and a driver. In addition, the institution plans to hire an MIS manager at
the beginning of year three to supervise the new management information system, a savings
director in the third quarter of year two to prepare for the new services to be offered in year three,
and a human resources manager at the beginning of year two to work with the growing number
of staff. Starting in the third quarter of year two, when MIO prepares to transform to Microfinance
Company, they will hire a general manager that will take over the executive responsibility for the
formal microfinance institution, and an Assistant Accountant. When MIO becomes a legal

Microfinance Company in year three, they will hire an internal auditor to ensure appropriate
controlling and reporting.
Projecting MIO’s Administrative Salary and Benefits Expenses
Just as for the Branch staff, the salaries of MIO's administrative staff is considered equal to market
rates. The staff estimated monthly salary and benefit costs for administrative staff are as follows:
Position Monthly Salary including benefit
Executive Director $2500
General Credit Manager $1800
Chief Account $1500
Internal Auditor $500
Assistant Account $350
MIS Assistant $700
Human Resource Manager $850
Regional Manager $1200
Business Development Manager (Audit Team) $1200
Projecting MIO’s Other Operational Expenses at the Administrative Level
MIO prepared the following budget estimates for other operational expenses at the administrative
level:
Category Expense Inflation Adjustment
Head Office Rental USD 450 Monthly
Utilities USD 800 Monthly
General office expenses USD 500 Monthly
Repairs, maintenance, insurance USD 500 Monthly
Professional fees, consultants USD 500 Annually
Board Expenses USD 600 Monthly
Staff Training USD 5/staff per month Monthly
Miscellaneous expenses (%) 5% of operational admin expense Monthly
Monthly
MIO’s Fixed Asset Acquisition Plan at the Administrative Level
To begin the fixed asset analysis at the administrative level, MIO entered the following
information about the institution's existing assets:
Asset Purchase Amount USD Remaining life /Year
Eight Computers USD 2340 2
One Assorted office furniture USD 1700 5
Accumulated depreciation, total USD (4040) 4
MIO budget for the purchase of five additional computers in months 18, 25, 31, 37 and 49,
whenever MIO expect to hire new administrative staff members (e.g. Human Resource Manager
is expected to be hired in the beginning of year two). They also budgeted for the purchase of
additional office furniture grouping in month 20, when administrative staff accounts for more

than five members. These purchases are in addition to the automatic replacement of fully
depreciated equipment that is projected by the model.
Analyzing MIO’s Land and Buildings
In 2018, MIO owned no land or buildings and had no plans to acquire any during the next five
years, all are under rental fee.
Analyzing MIO’s Other Assets
MIO's strategic plan identified an urgent need to upgrade the MIS system, and budgeted USD 30,
000 in month 30. The MIS is treated as an asset and amortized over a five year period.
Analyzing MIO’s In-kind Subsidies
Through independent stakeholders, MIO have to pay rent for their Head Quarter office during the
projected period. MIO estimates the value of this amount at USD 5400 for year one. With regards
to the inflation, the project it will increase in year five. MIO entered these figures initially as their
monthly equivalents of USD 460 a month for year one. While this rent subvention is not an actual
expense for MIO, it is factored into the financial profitability calculations.
7.4. Risk Management and Controlling
MIO identified following main risk categories: credit, liquidity, and operational Risks.
Credit Risk
Credit risk is defined as a potential loss that is indicated when a borrower fails to repay a loan.
MIO‘s risk prevention and collection strategy depend on the reason for the imminent default:
unwillingness or financial distress. Group lending methodology and up-front compulsory savings
will decline MIO‘s credit risk. Biweekly collection procedures and trainings are parts of an early
risk recognition system based on ongoing customer evaluation provided by the loan officers.
Different approval levels (group member – loan officer – branch manager –chief credit officer)
should ensure a high quality loan application process. A borrower who is in financial distress and
is willing to repay their loans will be transferred to a flexible loan. A flexible loan reduces the
installment size and extends the maturity depending on the customer payment ability. In 2019,
when MIO will be legalized as Microfinance Company, but an internal auditor will be hired to
implement a risk management system following the requirements and the national banking
regulators.
Liquidity Risk
Liquidity risk management will be done by the Finance Committee which ensures that funding
commitments and deposits withdrawal can be met on time. For that purpose, MIO has considered
a sufficient liquidity margin in their model.
Operational Risk
Operational risk is a main issue for a start up in finance with their limited resources. Employees
who are overloaded, undertrained or underpaid are the primary driving force behind errors, fraud
and mismanagement. MIO decided to serve and educate their employees from the beginning in a

competitive manner. This serves to increase their identification with the company. To ensure
proper operational procedures, reasonable controlling systems will be developed from the
beginning and will be managed by the Executive Committee. An operational margin is
implemented in the model to handle any operational losses and liquidity.
7.5. Financing Strategy
Identifying MIO’s Sources of Financing
Management prepared the following summary of MIO's financing sources. MIO has the following
grant commitments and pledges:
* Individual Investors from stakeholder pledged 600,000 USD for the first 18 months.
*SATHAPANA & MARUHAN Bank is an international cooperation enterprise for sustainable
development in South Asia operations. MARUHAN promotes complex reforms and change
processes, often working under difficult conditions. Its corporate objective is to improve people‘s
living conditions on a sustainable basis. MIO expect a grant of 300,000 USD for the first
corporation.
*ACLEDA Bank is a local bank which operated in South Asia country, Cambodia, Lao,
Myanmar, Acleda has a clear vision to contribute 200,000 USD.
MIO needs to receive portfolio restricted loans, and estimates for the third quarter in 2015 a initial
loan of about 10,100 USD at zero percent to expand their pilot program to 250 borrowers in Siem
Reap. It is reflected at the initial outstanding amount, at the beginning of the projection period.
MIO restricted the use of savings to loan portfolio financing. The management established a
liquidity margin for portfolio of 25% of monthly loan disbursements, and a liquidity margin for
operations of 31% of monthly cash expenses. MIO is expecting an initial market rate cost of funds
of 20%. This is a precaution estimate. Some commercial Banks in Cambodia offers lower interest
rates. This rate is expected to decrease down to 16% when the company becomes a formal
financial institution and has sufficient means in year three. MIO considers any interest rate that is
at least 85% of this value to be market rate.
Projecting MIO’s Financing Flows
Loans
MIO modeled the institution's financing strategy by entering all confirmed and likely financing
receipts and repayments. All loan payments are entered as negative numbers:
*Unidentified sources. The initial loan amount of KHM 10,100 USD that is needed to serve 250
clients in third quarter 2015 will be repaid in September 2016. A new fund of 150,000 USD with
a supposed maturity of one years is expected in February 2016 and entered in the model. MIO
will make monthly payments.
* MIO is scheduled to receive its first disbursement from Shareholder and partner after 2016, and
new funds are expected.
Funds
MIO anticipates experiencing a funding shortfall in the end of 2015. The following years also
show shortfalls, with the exception of year five. In addition to the indicated fund sources, MIO
management philosophy is to gain self-sufficiency within five years. For that purpose, the
management restricts the fundraising portion with a declining percentage of 100% in year one
down to 55%, in year two, 50% in year three and 30% in year four. In 2020, MIO does not expect
to require any more grants.

Equity
In year four, MIO plans to open a new branch in Phnom Penh. Under the National Microfinance
Policy, MIO is requested to raise capital amounting to 20,000,000 USD to become a nationwide
operating Microfinance Company. To increase their equity and to strengthen their customer
retention, MIO will introduce a compulsory membership model, where each new borrower will
pay 5 dollars with an annual distribution of dividends, starting in year three. Projection shows that
additional equity funding sources are needed.
Investment Strategy
MIO will not establish any long-term investments during the first five years. MIO will earn 2%
to 4% interest on cash deposits. It earns 5% on short-term investments, 7% on savings reserves
and would earn 10% on long-term investments if it had any. All rates are based on current market
rates. MIO will generate nearly 21,600,000 USD (round up) in investment income over the five-
year period.
7.6 Credit Policy Plan of MIO
1-Individual Loan None Collateral
Amount I.Rate Weekly Monthly Repay-Scheduled Repay Gua. People Collateral Sources
$50
to
$200
2% 16 – 42 W 4 – 10 M P&I for 1 week
60%
Gua. or None A- Family book, accom. book, ID Card
B- ID Card (Motorbike –Car)
C- Land-House License
4% 16 – 42 W 4 – 10 M P&I 2 week Agreement Form
8% 16 – 42 W 4 – 10 M P&I Monthly Family involved
$201
to
$250
2% 16 – 52 W 4 – 12 M P&I for 1 week
60%
Gua. or None
Loan: $50 to $200 should follow:
1-Collateral 1 in item of A
2-Collateral 2 in item A1, B1, C1
3-Collateral 2 in item A2, B1, C1
$251
to
$500
2% 16 – 77 W 4 – 18 M P&I for 1 week
60%
Gua. or None
2-Group loan none collateral: Team borrower from 3-5 persons (collateral depend on loan scale)
$50
2% 16 – 42 W 4 – 10 M P&I for 1 week Agreement family A- Family book, accom. book, ID Card

to
$200
4% 16 – 42 W 4 – 10 M P&I 2 week 60% Guarantee people B- ID Card (Motorbike –Car)
C- Land-House License8% 16 – 42 W 4 – 10 M P&I Monthly Gua. Co-Group
$201
to
$375
2% 16 – 77 W 4 – 18 M P&I for 1 week 60% Agreement family A- Family book, accom. book, ID Card
4% 16 – 77 W 4 – 18 M P&I 2 week Guarantee people B- ID Card (Motorbike –Car)
8% 16 – 77 W 4 – 18 M P&I Monthly Gua. Co-Group C-Trust house-land license
3-Individual loan with collateral
$51
to
$1000
1% 16 –104W 4 – 24 M P&I for 1 week
60%
Guarantee with
agreement from
family members
A-Trust land-house license (Hard)
B-Trust land-house license (Soft)
All Collateral must be signed and
approved from Chief Village, and Chief
Commune law of house provincial.
***In case of customer have saving
account between 30% of loan requested
with MIO will be considered***
2% 16 –104W 4 – 24 M P&I 2 week
4% 16 –104W 4 – 24 M P&I Monthly
$1001
to
$2000
1% 16 –130W 4 – 30 M P&I for 1 week
60%
Guarantee with
agreement from
family members
2% 16 –130W 4 – 30 M P&I 2 week
4% 16 –130W 4 – 30 M P&I Monthly
$2001
to
$3000
1% 16 –182W 4 – 42 M P&I for 1 week
60%
Guarantee with
agreement from
family members2% 16 –182W 4 – 42 M P&I 2 week
4% 16 –182W 4 – 42 M P&I Monthly
4-Group loan with collateral: Team borrower from 3-5 persons; collateral depend on the maximum of loan requested
$50
to
$200
1% 16 –77 W 4 – 18 M P&I for 1 week
60%
Agreed all family
members
A-Trust land-house license (Hard)
B-Trust land-house license (Soft)
All Collateral must be signed and
approved from Chief Village, and Chief
Commune law of house provincial.
2% 16 –77 W 4 – 18 M P&I 2 week
Guaranteed
people
4% 16 –77 W 4 – 18 M P&I Monthly
Guaranteed
Co-Group
$201
1% 16 –104W 4 – 24 M P&I for 1 week
Agreed all family
members

to
$1000
2% 16 –104W 4 – 24 M P&I 2 week 60%
Guaranteed
people ***In case of customer have saving
account between 30% of loan requested
with MIO will be considered***
4% 16 –104W 4 – 24 M P&I Monthly
Guaranteed
Co-Group
$1001
to
$2000
1% 16 –130W 4 – 30 M P&I for 1 week
60%
Group to Group
guaranteed
Group to Group
guaranteed
2% 16 –130W 4 – 30 M P&I 2 week
4% 16 –130W 4 – 30 M P&I Monthly
8. FINANCIAL PROJECTIONS
Financial projection plan was made with a Microsoft Excel spreadsheet developed by co-chair of
MIO. The experience MIO team are extremely well serve to all level of highest, average, and
under average. All branches are subsidiary to head office for all financial needs and daily
demanding. The head office will delegate as daily operation requested, which show up the
numerous of requested and approved by financial manager. Future more, the daily observation of
local economic market are strict to report by MIO credit officers. The main key of this market
channel will be affect to daily exchange and daily interest rate in wide spread market if fail of
planning to dial beforehand.
C A P ITA L YEA R 1 YEA R 2 YEA R 3 YEA R 4 YEA R 5 LOC A TION
480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 Siem Reap
480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 Kampo ng Tho m
480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 Battambo ng
S um m a ry 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 Kampo ng Cham
Output 480,000,000.00 480,000,000.00 480,000,000.00 480,000,000.00 P rey Veng
480,000,000.00 480,000,000.00 480,000,000.00 Kampo ng Chhnang
480,000,000.00 480,000,000.00 480,000,000.00 P hno m P hen
480,000,000.00 480,000,000.00 480,000,000.00 P hno m P hen
480,000,000.00 480,000,000.00 480,000,000.00 Kandal
TOTA L 9 6 0 ,0 0 0 ,0 0 0 .0 0 2 ,4 0 0 ,0 0 0 ,0 0 0 .0 0 4 ,3 2 0 ,0 0 0 ,0 0 0 .0 0 4 ,3 2 0 ,0 0 0 ,0 0 0 .0 0 4 ,3 2 0 ,0 0 0 ,0 0 0 .0 0
M IO C R ED IT OP ER A TOR IN S TITUTION
F IN A N C IA L P R OJ EC TION
9. Job Descriptions
Designation Duties Responsibilities Experience
Chief
Executive
Officer
1.General Management
*Human Resource Selection and development
-Data remote pushing way to operation to meet high quality of MIO subject
-Handle all operation and multi task of MIO vision and core value to achieve
MIO goal
-Set up all internal memorandum to meet expectation of target set down
-Develop branch and head office capacities and evaluate of all process key
points
-Conduct training and last minute meetings if required

-Staff monthly appraisal and monthly job delegation objective by department
head
-Branch observation to boost up abilities, accuracy, balance and cable to reach
business plan
-Active feedback of any issue with right decision of regulation, maintaining,
coordinating, adaptation for all processing.
-Manage people, motivating skill and comprehension on score analytical to
meet expect of yearly appraisal of MIO code ethic.
-Conduct human resource training and job training delegation task in manner
-Survey all weekly and monthly of MIO score work as monitoring all aspect in
whole process.
*Inventory Management
-Approving and adjusting to operation requested of demanding made by head
department and supervisory level.
- Review all inventory report in daily basic
-lease of new implementation on project need
*Marketing and Sale advisory
-Quoted new data and strategy set down on time and up to date of market
changing; and revolution.
-Delegate of product and approve of new product
-Set out budget plan and in-come statement for MIO achievement
-Develop product knowledge of packaging for branch office and head office
-Research and survey of competitor abilities and possibilities
-Market and daily economic analysis
-Observational of customer changing behavior and market change
-Delegate and report of region economic change
-Connectivity with NBC and authorities of new regulation updated and
government requirement
*Financial Management and Business auditing
-Check all transaction and report of bank transfer and branch demanding
-Approved and connecting with owner of financial process
-Audit and check all report from finance
-Advise and establish in case any leaking point is shown up
-Check all expense report and income report
-Push on MIO regulation set up
-Check and report to owner for DTD, MTD, YTD of finance report
-Cooperate with financial controller to monitor of stock demanding are in
progress
-Disburse observation and investigation
-Ensure all financial reporting are accurate, balance and complied with MIO
frame
*Analytical Report of MIO Risk and Profit
-Find out the key point to avoid of high risk
-Find out the profit of MIO frame to meet target
-Win market collection report
-Dating and observation of competitor product
-Specific of MIO spread into market
10 Years
Business
Development
Manager
*Overall assessment of overview MIO
-Planning organizational of MIO branch development
-Project of business awareness of new competition
-Establish baseline data that will be used as a basis
-Planning organizing also monitoring progress and measuring impact of new
project to MFIs and competitor
-Conduct training all type of MIO program and procedure
-Strengthening appraisal capacity of internal and external relevant
disaggregated data
7 Years

- Strengthening appraisal capacity technical of MFIs in assessing sustainable
lending to viable MSEs
-Improving and upgrade business skill of MSEs formal and informal
entrepreneurs
-Develop of a MIO sensitive business planning and management training
manual
-Observation and managing on performance result analysis and key point
-Update the market demanded and prepare new product as demand with
regional manager
-Data relationship from other department
-Marketing research on MIO product and competitor product
-Analytical skill on area and local economic situation
-Prevention of lost revenue found
*(1) Branch Development and business development
-Check to operational running and new branch processing data [entry and
disburse]
-Suggest and develop incase late red-payment and find out the main component
-Push on main key competencies for highest result of branch
-Set target for business regulation and daily, weekly, monthly performance
-Program coordinating with branch manager and employment survey on daily
performance
-Lease business regulation and assist branch manager to follow up company
procedure
-Observe when branch is low score result and barnstorming list as new target
recovery
-Immediate operate on any help as requested from branch province or internal
operation
-Assist on problem solving if needed
*(2) Internal Audit and research competitor on daily basic
-Audit on business or branch processing data
-Ensure all documentary are compiled MIO regulation and standard operation
as required
-Daily monitoring on management system report is well running and well
organized
-Cooperate with finance department to specific on main target set by MIO
-Daily check to all branch finance report
-Immediately feedback if any project are mail functioning on operation
-Collect all data feedback result for new key establishment project
-Work closely with internal audit for efficiency internal operation
*(3) Reporting skill on information collection
-Ensure all of MIO portfolio report to CEO and MD are up to date
-Manage and analysis of all financial processing report, income, expense, asset
....etc.
-Collect all information data from branch office and head office to ensure all
well check
-Critical thinking on daily report
-Ensure MIO level administrative are up to date with standard regulation
*(4) Marketing involvement and result clause
-Work closely with regional manager to multilink of marketing research
-develop and report of monthly yearly GDP to compare new guide line product
-Base line data analytical skill
-Win competitor program set as report receiving from regional manger
-Product knowledge and creative productivities for MIO
-Main tower decision of strategic management team and market player
-Forecasting daily decrease and increase of customer demanding, knowledge
and their need

-Yield management and marketing develop organizational set
-Credit Policy and credit limited establishment
-Coordinate and adjust of NBC requirement and MIO requirement
Regional
Manager
*Overall assessment of overview MIO
-Organizational executive of MIO branch development
-Project of business awareness of new competition
-Establish baseline data that will be used as a basis
-Planning organizing also monitoring progress and measuring impact of new
project to MFIs and competitor
-Conduct training all type of MIO program and procedure
-Strengthening appraisal capacity of internal and external relevant
disaggregated data
- Strengthening appraisal capacity technical of MFIs in assessing sustainable
lending to viable MSEs
-Improving and upgrade business skill of MSEs formal and informal
entrepreneurs
-Develop of a MIO sensitive business planning and management training
manual
-Observation and managing on performance result analysis and key point
-Update the market demanded and prepare new product as demand with board
manager team
-Data relationship from other department as researching expert
-Marketing research on MIO product and competitor product
-Analytical skill on area and local economic situation
-Prevention of lost revenue found
*(1) New Branch open door and development business
-Operational running and new branch processing data research [entry and
disburse]
-Suggest and develop the main component in accordance with chief credit
officer and branch manger
-Push on main key competencies for highest result of branch in case loan late
and solving problem
-Set target for business regulation by comparing other MFIs performance
-Program coordinating with branch manager and employment survey on daily
performance and learn from what customer feedback
-Lease business regulation and assist branch manager to follow up company
procedure by providing the data diagram from other competitor
-Push idea when branch is low score result and barnstorming list as new
immediate target recovery
-Immediate operate on any help as requested from branch province or internal
operation requirement
-Assist on problem solving if needed
*(2) Internal research and competitor research on daily basic
-Daily observation on business or branch processing data research
-Ensure all documentary are compiled MIO regulation and standard required of
NBC and local authority
-Daily monitoring on management system report is well running and well
organized as informed
-Cooperate with business development department to specific on main target
set by MIO
-Daily check to all branch finance report up and down
-Result expectation of product research from other MFIs by monthly and year
- Prepare secure and unsecure loan recovery report with credit officer and
agent, collaterals or possibilities urgent need of customers
8 Years

-Immediately feedback if any project are mail functioning on operation, idea to
restore the case
-Collect all data feedback result for new key establishment project
-Work closely with internal audit for efficiency internal operation and business
development team
*(3) Reporting skill on financial collection and local authorities connection
-Ensure all portfolio report or part of financial and productivities from other
MFIs is report to CEO and MD are up to date
-Manage and analysis of all financial processing report increasing disburse and
market demanding and needs ...
-Collect; manage all information data from branch office and head office to
ensure all well check
-Critical thinking on social network connection and authorities
-Ensure MIO level administrative are up to authority’s regulation demand
-Market collecting information and formula creative to win percentage
*(4) Marketing involvement
-Multilink of marketing research
-Observation of customer behavior changing and knowledge
-develop and report of monthly yearly GDP to compare new guide line product
-Base line data analytical skill
-Win competitor program set and sale score preparation with chief credit and
credit agent and branch manager
-Product knowledge and creative productivities for MIO and learn about other
product report
-Main tower decision of strategic management team and market team player
-Direct forecasting daily decrease and increase of customer demanding,
knowledge and their need in daily living standard
-Yield management and marketing develop organizational set
-Provided good connectivity with government and local authorities of customer
background research and region research
-To identify and evaluate best region and un-score region
-Defining target lowest, medium and highest
-Work with government people for determination of market size and location
including credit limited volume
-Financial planning of region and province

Finance
Manager
About the position: This position will form a key component of MIO Finance
Business support structure and will have direct responsibility of the finance
activities and performance.
*Oversight of MIO budgets:
- Ongoing analytical review to identify key trends
- Identifying process improvement opportunities and driving the
implementation of MIO plans
- Supporting the Board Director in driving regional imperatives
- Supporting the improvements of AR and AP management
- Supporting cash forecasting
- Supporting monthly financial close process
- Supporting on cost management
- Supporting the key commercial matters
- Supporting the identifying value adding opportunities
- Acting as a key member of the Cambodia management team
*Roles & Responsibilities:
- Support the Board Director implementing finance policy
- Taking daily responsibility for the Cambodia finance transactions
- Supporting MIO plan on client related profitability reviews
- Support the monthly financial close process where relevant
- Taking the lead in providing broad feedback on financial close process each
month to drive continuous improvement
- Provide Leadership and guidance to MIO in successfully supporting MD’s
- Driving the sub-region direct system operation [DSO] and develop program
operation [DPO] targets and managing down over dues
- Support MIO in driving down Unbilled and bed debt balances
- Supporting on large client credit assessments
- Provide feedback on performance relative to metrics, targets and budgets
- Drive monthly rolling 12 months forecast
- Identify and implement profit improvement plan initiatives where required
- Assess the profitability of the country and the underlying business units
- Assess costs against budget and prior year to identify costs that may need
further investigation and potential remedial action
- Oversight of the Country budget process for business analysis
- Implement general risk management strategies and mitigation activities,
encompassing clients, premises, assets, personnel, etc..
- Support MIO in any commercial matters, legal or otherwise
- Maintain compliance with local commercial laws & tax and requirements
- Support MIO channel in driving forex policies and in identifying any
opportunities to improve forex management
- Support cash management activities to ensure cash is available to meet
business needs in flow or petty cash.
- Provide general support to drive “value-add” initiatives
- May perform other duties as assigned
* To be successful in this role will require the following:
- Track record in driving financial close on Oracle/1View
- Solid track record as a Finance Business partner
- Ability to drive MIS and DPO improvements in MIO project
- Internally motivated, self-starter with ability to plan, organize and establish
priorities to meet goals and achieve results.
- Strong financial acumen and critical analytical skills
- Detail oriented demonstrated leadership, people and process management
skills
- Excellent relationship building skills ability to write reports, business
correspondence
7 Years
Experience
Holding
BBA, MBA
of Finance
Banking

MIO Business Plan

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