mba project work under development

SALES MANAGEMENT IN CONSUMER DEPOSIT PRODUCTS IN FINSNCE AND LEASING COMPANIES

A STUDY ONUNITED LEASING COMPANY

1. Introduction 1.1-Background of report1.2- Objective of the report1.3-Scope and Methodology1.4- Limitations2. The Company2.1. Duncan Brothers (Bangladesh) Limited2.3. Corporate objective2.4 The sponsors and shareholding structure-2.5. The Management2.5.1. Board of director2.5.2 -Milestones2.5.3 - Branches Opened2.5.4- Our Management2.5.5. Organization Structure2.6 Company Performance 2.7. Mission, Vision and Goal of the Organization3. Investment Services4. Loan5. The Clients5.1 The industrial Policy

5.2 Client Segmentation

6. SWOT analysis of ULC

6.1 Strengths:

5.2 Weaknesses:

5.3 Opportunities:

5.4 Threats:

7. Sales Planning

7.1.1 Sales territory Design

7.1.2 Sales target Determination

7.1.3 Product-wise sales strategies-

7.2 Sales Force Planning

7.2.1 Sales Force Planning

7.2.2 Sales force requirements determination

7.2.3 Sales force structure design-

7.2.4 Recruitment, Selection, Training

8.Personal Selling Activities-

8.1 Prospecting

8.2 Sales interview

8.3 Sales closing

8.4 Resistance management

8.5 Feed backing-

9. Finding10. Recommendations11. Conclusion

Introduction 1.1-Background of reportThe report “Sales management in consumer deposit products in finance and leasing company” is the outcome of the project work under marketing department of United Leasing Company (ULC) limited. Project work is a precondition for acquiring MBA degree which gives a perfect opportunity to blend our theoretical knowledge with practical experience from a certain organization. Only curriculum activities are not enough for handling the real business environment. So it is necessary to get the better knowledge about the real scenario of an organization.

1.2- Objective of the reportThe prime objective of threw project work is to provide prospective on the job exposure and an opportunity to apply theoretical knowledge so far received in to real life situation. Now the objectives of this report are being illustrated bellow:

Find out how those products affected the financial position of the company To know about overall scenario of United Leasing Company (ULC) limited To illustrate the organization profile, structure and performance To illustrate its products and or service and their benefits and costs Find out how those products affected the financial position of the company To give an overall and clear idea about sales management in consumer deposited

product in United Leasing Company (ULC) limited

1.3-Scope and MethodologyPrimary emphasis of this report has been given to how they sell there consumer deposited product and there methodology of selling the product.Primary Source-

To talk with the employee Interview to clients Annual report of company that are being reviewed

Secondary Sources CIB Reports Official web site of United Leasing Company (ULC) limited Annual reports of United Leasing Company (ULC) limited Brochure’s of United Leasing Company (ULC) limited

1.4- LimitationsThe major limitation faced in preparing this report was the sensitivity of the data. As it is a highly competitive market, if the margin information is released to other competitors, it may have negative impact on their business. Confidentially of data was another important barrier that was confronted during the conduct of this study. Every organization has their own secrecy that is not revealed to other. While conducting interviews with different personnel did not disclose enough information for the sake of confidentiality of the organization.Less time is the another limitation of this report as because I got the less time to prepare this report and as well as to doing the work on this organization as a sales team officer I got the less time to prepare this.

2. The CompanyUnited Leasing Company Ltd.(ULC ), one of the leading financial institutions in Bangladesh, was incorporated on April 27, 1989 as a public limited company. The Company was listed in the Dhaka Stock Exchange in 1994 and operates under the license granted by Bangladesh Bank.

2.1. Duncan Brothers (Bangladesh) LimitedThe history of Duncan Brothers dates back to 1858 when Mr. Walter Duncan established playfair Duncan & Co. in Calcutta (now Kolkata), the capital of the undivided British-ruled Indian subcontinent. Later he was joined by his brother Mr. William Duncan and the two brothers set up a company on 1 January 1875 to deal in cotton. Though the Company’s involvement in tea came in 1865, its actual stride in tea business began onwards from 1880. By 1923 the company had a firm girp on tea cultivation by taking in its possession 60 tea estates in Dooars, Assam and Sylhet encompassing nearly 20,000 hectares of cultivable land and producing a crop of about 14.50 million kilograms a year.

The partition of the Indian subcontinent in 1947 led to the setting up of Duncan Brothers (Pakistan) Limited on 20 January 1948 with its office in Chittagong. The newly established company in the then Pakistan assumed its Calcutta-based parent company’s interests involving its tea estates in the Sylhet region. An assured market in the then West Pakistan helped a steady growth of the tea industry in the eastern part of the country and the company soon became one of the country’s leading producers. After the emergence of independent Bangladesh, the name of the company was changed to Duncan brothers (Bangladesh) Limited.

The Bangladesh War of Liberation in 1971 left a trail of devastation in the tea industry. The market in West Pakistan was lost and the Company incurred heavy losses from 1971 to 1974. at this juncture, Lawrie Group Plc became involved and assumed a controlling interest in Long Bourne holdings, the holding company for the 5 Duncan-managed UK-registered tea companies operating in Bangladesh.

Tea is still the mainstay of Duncan Brothers. The Group now owns fifteen tea gardens located mainly in the greater Sylhet region and enjoys the distinction of being the largest

producer of black tea in the country, producing over 13 million kilograms per annum, which is about one quarter of the country’s production. Every season, the Group exports on its own about a million kilograms of tea with Pakistan being the major destination.

Besides tea, the Group has also extended its interests in insurance, leasing, rubber, bottled water and warehousing employing about 24,000 people and generating a gross annual turnover of about Tk. 2.5 billion. With a splendid objective of doing business with a human face, the Group spends approximately Tk. 85 million yearly towards corporate social responsibility, which includes flagship projects like a well-equipped 50-bed hospital for tea workers and their families and a residential school for workers children, both located in the tea belt.

Lowrie Group PlcThe Lawrie Group plc, which is incorporated in the UK, has interests in a wide range of activities in many countries of the world. Its major investments are in the Uk, India, Bangladesh, East and Central Africa, the USA, Switzerland and Brazil.In India, Bangladesh, Kenya and Malawi the Grop’s interests are principally in the with a total cultivated area of 35,000 hectares. This makes the Group one of the largest producers of tea in the world, with an annual crop of 75 million kilograms. In the UK, the Group owns t5he private bank Duncan Lawrie Ltd, which offers banking, investment and other financial services to an international clientele. The Group’s portfolio in the UK also includes investments in property, cold storage and distribution. The Lawrie group is now entirely (100%) acquired by Camellia Plc.

Camellia PlcCamellia Plc is a conglomerate with diversified interests that include tea, coffee, wine, food, beverages, horticultural products, rubber, insurance, investment, banking and financial services. But tea, the original trade of the company, occupies a large share of the business and is located in India and Bangladesh with very large interests in Kenya and Malawi. The Group is the largest non-governmental producer of tea in the world with a crop of 75 million kilograms.

Camellia, the apex body of the Group, was originally set up as a comparatively small business, owned by individual British families who went out to the Middle East in the 19th Century. Its original name was The Company Ltd and was set up in India in 1889. Other companies formed in India and neighbouring countries around the same second half of the century were Alex Lawrie, Duncan’s and Eastern Produce, which years later merged. The 1967 merger of Alex Lawrie with Walter Duncan and Goldbricked marked a major development, which paved the way for further mergers later on. In 1990 Eastern Produce holdings, whose origins were rooted in 19th century Ceylon, joined the Camellia group, changing their name to Linton Park Plc. Camellia Plc is, in fact, the result of a series of mergers over the years. Camellia is the apex company controlling around 80% of Linton Park Plc, 100% of Lawrie Group, 74% of Goodricke (through either Lawrie or Linton) and 100% of Bangladesh.

United Leasing Company

United Leasing Company Limited (ULC), an associate company of Duncan Group, commenced business in 1989 as a first generation lease financing company in Bangladesh. The company incorporated as a public limited company under the Companies Act 1913, ULC was also granted license under the Financial Institutions Act, 1993. The shares of the company are quoted on the Dhaka Stock Exchange since 1994.

Considering the importance of the venture, organizations like Asian Development Bank (ADB), Commonwealth Development Corporation (CDC) joined Lawrie Group Plc and Duncan Brothers (Bangladesh) Ltd. to participate as sponsor shareholders.

The vision was to assist the development of private sector industries by extending equipment lease financing to the industrial and service sectors. ULC actively participated in the private sector led industrialization drive that the country embarked on in the early 1990s as leasing became popular amongst the entrepreneur as an alternative source of finance. More and more investments in capital items began being made through leasing in view of its flexibility and advantage over traditional finance.

Since inception ULC has maintained prudent investment policies and has successfully positioned itself among the frontrunners in an increasingly competitive financial service sector. Building a diversified pool of assets spread across almost all sector of the economy and serving a wide spectrum of customers in the process. The Company’s customers include most of the top corporate groups in the country including some of the multinationals. However, the Company’s major and most profitable business segments are leases to the small and medium enterprises.

The company enjoys a sound reputation for excellent customer service. As an associate of a long established foreign company, it is recognized as a reliable financial partner among the business community. Its access to multilateral institutions like ADB and The World Bank permits it to arrange funds at competitive rates and get their assistance in areas such as staff training and information technology.The company has gained reputation as a dependable financial institution capable of delivering prompt and quality service.Continuing its journey, ULC will invest its resources to expand their customer base and better serve their existing customers by diversifying their asset and liability portfolios. ULC has the financial strength, management capability and committed human resources to ensure sustainable growth.

2.3. Corporate objectiveThe Main objectives of the company are to assist the development of productive private sector industries particularly in their balancing and modernizing programs. The company mainly extends lease financing for machinery, equipment to the industries and vehicles for commercial purpose. In addition it also provides project finance for expansion of business.The primary activity of the company is to provide the lease to different commercial organization. It provides lease for all sort of manufacturing equipment and for vehicles.

2.4 The sponsors and shareholding structure-ULC was formed by reputed foreign and local institutions in collaboration with International Development Agencies. It was granted license under the Financial Institutions Act, 1993. Authorized Capital 1,000 million..Paid-up-capital 264 million..

Shareholdings of Associated companies and other related parties:

Name of Shareholders No of Shares ShareholdingUnited Insurance Co. Ltd. 544,845 20.64% .Lawrie Group Plc, U.K. 528,000 20.00% .Surmah Valley Tea Co. Ltd. 218,425 8.27% .Duncan Brothers (Bangladesh) Ltd. 26,400 1.00% .Macalms Bangladesh Trust 25,453 0.96% .Octavius Steel & Co. of BD Ltd. 18,857 0.71% .The Lungla (Sylhet) Tea Co. Ltd. 15,313 0.58% .Camellia Duncan Foundation 3,019 0.11% .The Chandpore Tea Co. Ltd. 1,846 0.07% .The Allynugger Tea Co. Ltd. 1,570 0.06% .Amo Tea Co. Ltd. 1,620 0.06% .Chittagong Warehouses Ltd. 1,572 0.06% .The Mazdehee Tea Co. Ltd. 1,569 0.06% .Duncan Products Ltd. 1,568 0.06% .

2.5. The Management

2.5.1. Board of director In Board of Directors consisting of few members who are the nominees of the institutional shareholders supervises the Company management. Chairman Nominated by Mr. Imran Ahmed : Lawrie Group Plc of the U.K. Directors Mr. Peter John Field : Lawrie Group Plc of the U.K. Mr. A. Rouf : Macalms Bangladesh Trust Mr. S. Aziz Ahmad : Surmah Valley Tea Company Limited Mr. M. M. Alam : The Allynugger Tea Company Limited Mr. M. A. Azim : The Chandpore Tea Company Limited Mr. M. Moyeedul Islam : United Insurance Company Limited Independent Director Mr. M. Abdul Wahed Ex-Officio Director Mr. Syed Ehsan Quadir

The company policy is to attract, motivated and retain top quality financial service professional. At present ULC’s staff strength 245.

2.5.2 -Milestones

ULC was established in 1989 as a public limited company, to cater the investment needs of our economy. Milestones

Incorporation of the Company... April 27, 1989

Commencement of operation ... September 12, 1989

Public Issue of shares ... March 28, 1994

Trading of shares on Dhaka Stock Exchange ... June 23, 1994

First dividend declared ...April 20, 1995

Authorised capital increased ...May 18, 2000

Launch of Fixed InvestmentProducts ... September 2005

Commencement of Factoring Operation ... October 03, 2005

2.5.3 - Branches Opened Chittagong Branch ... June 16, 1994 Jessore Branch ... December 26, 2005 Gazipur Branch ...February 19, 2006 Bogra Branch ... June 19, 2006 Extended Office (Noor Tower) ... June 13, 2008 Sylhet Branch ... February 27, 2010.

2.5.4- Our Management Mr. Syed Ehsan Quadir : Managing DirectorMr. M. A. Azim : Deputy Managing Director Mr. M. Ataul Hoque : General Manager & Company Secretary Mr. Mohiuddin Rasti Morshed : Head of Corporate & Syndicate FinancingMr. Quazi Nizam Ahmed : Head of Investment Marketing Ms. Eva Rahman : Head of Channel Financing Mr. Fahad Rahman : Head of Enterprise Financing Mr. Md. Abul Ahsan : Head of Small Enterprises Mr. Jamal Mahmud Choudhury : Head of CSAM & AdminMr. Shahidul Islam Mazumder : Head of ICTMs. Sabrina Mehnaz : Head of Human Resource Ms. Sharmi Noor Nahar : Head of Board SecretariateMr. Md. Ashfaqul Haque Chowdhury : Head of Operations Mr. Khandaker Tanbir Islam : Head of Credit (small)Mr. Mohammad Neazur Rahman : Head of Internal Control & Compliance Mr. Imran Khan : Head of Credit (corporate & medium)

2.5.5. Organization Structure

United Leasing Company

Marketing Operations MIS HR IT Finance

Corporate

Medium Enterprise

Small Enterpriser

Factoring

Retail Marketing

Marketing Service

Monitoring

CRM MIS Accounts Treasury

2.6 Company Performance During 2008, your Company achieved a moderate growth in terms of profitability but there were significant challenges successfully met during the year. Service delivery channels across the country and across products were considerably improved. Your Company successfully diversified both its borrower and deposit base which is considered key to long term sustainability. Company kept its focus on exploring new markets for the existing products and also on long term commitment to our existing customers.

Equipment leasing remains the core business of the Company, however progress made in Small Enterprise financing and Factoring of Accounts Receivable were noticeable. During the year, the Company introduced structured repayment products for small businesses to suit the seasonality of their cash flow. Company extended its network for expanding the portfolio of factoring of accounts receivable. To further improve our product support for supply-chain component of businesses, pre-delivery financing was introduced in the channel financing product suit. Clients availing factoring facility can now avail financing to facilitate the production and procurement process. Company also added new long term investment products that promote savings for our clients and help us match our financing requirement. All these expansion required that we also improve our physical facilities. To cater to our clients better; the Investment Relationship, Small Enterprise financing, Channel Financing and Collection services moved to our Head office annex rd at the 3 floor Noor Tower, 110 B.U.C.R Datta Road, Dhaka 1000. We are hopeful that our clients will appreciate both the service and the environment. The Company closed the year 2008 with operating revenue of Tk.1,052.52 million and profit before tax of Tk.203.36 million compared to Tk.928.70 million and Tk.199.50 million in 2007 registering a growth of 13.33% and 1.93% respectively. Revenue from long term activities increased by 10.96% whereas revenue from short term activities increased by 64.32%. Operating cost however, increased by 26.55% which was mainly due to 25.36% increase in the major cost head i.e. financial expenses, over the last year. Adequate provision for bad debts has also been made this year to adequately cover ourselves from recovery risk. Earning-per-share increased by 6.45% to Tk.66 from Tk.62 in 2007. Total investment portfolio stood at Tk. 7.43 billion at the end of the year compared to Tk. 7.17 billion in 2007 registering a growth of 3.59%. Risk Management:You may recall that your Company has been making significant investment in creating a sustainable risk management infrastructure for the past couple of years. I am pleased to report that the efforts of the prior years are now yielding results.

The Basel II compliant, two dimensional credit risk assessment model, has now been in use for more than two years and as of December 31, 2008 around 60% of all our lending

assets are risk graded and we are certain that it will be 100% by the end of this year. We now have the expertise to evaluate the efficiency of the model, modify it and most importantly have a process to ensure data integrity. The benefit of having such a risk grading model operational is that it will ultimately allow us to monitor our asset quality more transparently as well as improve our provisioning and pricing capabilities. The Control and Compliance team was expanded and the width of their activity greatly enhanced to cover all the activities of the Company. The repetitive nature of work in many of the departments of a financial Institution exposes itself to the risk of complacence. We implemented departmental control function checklists to mitigate such operational risks. There is now an effective process to ensure that all the risk elements associated with the operation of your Company are proactively reviewed and actions are taken to mitigate foreseeable risks. Following Bangladesh Bank instructions the Company strengthened anti money laundering supervision by forming committees and establishing key operational control in head office and branches for mitigating reputation and financial risk.

2.7. Mission , Vision and Goal of the Organization

Mission

Devote continuous effort to improve products and services for sustaining competitive edge.

Ensure service excellence by leveraging motivated human resource and technology

Manage risks and costs to ensure sound financial performance and adequate return

Vision

Customers: Ensure that our service quality exceeds customer expectation in terms of timely delivery, fairness in treatment and value addition.

Risk Management: Proactively manage risks and adhere to international best practices.

Shareholders: Maximize growth in earning per share.

Employees: Provide a stimulating and challenging yet congenial work environment, invest in training to harness full potential and compensate on performance basis.

Goal To be the leading high quality service provider in the markets we serve.

3. Investment Services

Sanchay Scheme Sanchay scheme allows you to deposit on monthly basis and at the maturity you

will get a substantial amount of return with interest. Type of our Sanchay scheme:

Sanchay Scheme (monthly)

Millionaire Scheme

Easy Millionaire Scheme Features of our Sanchay scheme:

Monthly sanchay scheme does not require initial deposit.

Millionaire scheme requires initial deposit.

Minimum duration is 3 years.

Benefits of our Deposit product :

Safe investment High Return Flexible and diversified products tailored to your needs No incidental costs Premature encashment allowed after completion of minimum duration Any Individual or Firm or Corporate Houses are eligible to participate in the

Deposit Scheme of ULC. Best consumer service Loan facility up to 80%-90% of investment amount.

Required documents :

ULC Deposit Account Opening Form- Duly filled in and signed

A cheque or Pay Order in favor of 'United Leasing Company Ltd'

Copy of Passport or National ID of the applicant and co-applicant also.

One recent color photograph of the applicant

One recent color photograph of nominee, attested by the applicant

Term Deposits

Under this scheme, your money is deposited for a fixed period of time and interest is capitalized with the principal at each year. Our Term deposit products are: Annual Profit Term DepositA fixed return investment allowing you to withdraw or reinvest profit or principal at maturity. Earn Ahead Term DepositThis scheme offers you an opportunity to benefit from your investment at the time of opening account. Also allows you to reinvest withdrawal amount for further benefit. Cumulative Term DepositUnder this scheme profit from your invested amount has been capitalized at the end of each year (after AIT deduction), creating a new principal. Profit for next year will then be calculated on the full amount Double money returnDue to attractive profit, your investment becomes double at maturity. Features of our Term deposit products: The term deposit cannot be encashed before 1 year. The profit is subject to deduction of AIT accordance to the prevailing govt. rules and regulations. Senior citizens (individuals aged 57+) will get 0.25% higher profit rate under all the deposit schemes other than fixed term investment schemes (Double money, Sanchay and Millionaire schemes.) Earn Ahead Term Deposit scheme is applicable for Individuals only.

Benefits of our Deposit product :

Safe investment

High Return

Flexible and diversified products tailored to your needs

No incidental costs

Premature encashment allowed after completion of minimum duration

Any Individual or Firm or Corporate Houses are eligible to participate in the Deposit Scheme of ULC.

Best consumer service

Loan facility up to 80%-90% of investment amount. Required documents :

ULC Deposit Account Opening Form- Duly filled in and signed

A cheque or Pay Order in favor of 'United Leasing Company Ltd'

Copy of Passport or National ID of the applicant and co-applicant also.

One recent color photograph of the applicant

One recent color photograph of nominee, attested by the applicant

Earner Scheme

You will receive a fixed monthly or quarterly return against your deposit. This is an ideal

scheme for senior citizens who wish to preserve their retirement funds and at the same

time want to earn interest to meet recurring expenses.

Type of our Earner scheme:

Monthly earner deposit

Quarterly earner deposit

Features of our Earner scheme:

Minimum deposit amount for quarterly and monthly earner deposit scheme is

Tk50,000/-.

Term of the scheme is 06 months.

Earner scheme is available for both individual and institutional customers.

Sanchay Scheme (Monthly)

Installment Size

Return after Years (in Taka)3 Years 3.5 Years 4 Year 4.5 Years 5 Years

Tk 1000 41,500 49,500 58,000 67,000 76,000Tk 1500 62,000 74,500 87,000 100,000 114,000Tk 2000 83,000 99,000 116,000 134,000 152,000Tk 2500 104,000 124,000 145,000 167,000 190,000Tk 3000 124,500 149,000 174,000 200,000 228,000

Millionaire Scheme

Other Deposits

Investment Type Individual Institutional Annual profit (1 Year) 9.50% 9.50%Cumulative (2 Year/s) 9.50% 9.50%Cumulative (3-5 Year/s) 9.75% 9.75%Earn ahead (1 Year) 8.75% -Monthly earner (1 Year) 9.75% 9.00%Monthly earner (2 Year/s) 10.25% 9.25%Monthly earner (3-5 Year/s) 10.25% 9.50%Quarterly earner (1 Year) 10.00% 9.25%Quarterly earner (2 Year/s) 10.50% 9.50% Quarterly earner (3-5 Year/s) 10.50% 10.00%Short Term Deposit (6 Months) 8.00% 7.50%Investment Type TenureDouble Money Return 7 Years

Type InitialDeposit

Installment Size (in Taka) Principal@ maturity3 Years 5 Years 7 Years

Monthly Tk 050,000 22,700 12,200 7,700 1,000,000Tk 100,000 21,100 11,100 6,900 1,000,000Tk 150,000 19,500 10,100 6,100 1,000,000Tk 200,000 17,900 9,100 5,300 1,000,000Tk 250,000 16,300 8,000 4,500 1,000,000

Quarterly Tk 050,000 68,700 37,000 23,600 1,000,000Tk 100,000 63,900 33,800 21,100 1,000,000Tk 150,000 59,100 30,700 18,700 1,000,000Tk 200,000 54,300 27,600 16,300 1,000,000Tk 250,000 49,500 24,400 13,800 1,000,000

SemiAnnually

Tk 050,000 139,200 75,000 47,900 1,000,000Tk 100,000 129,500 68,700 43,000 1,000,000Tk 150,000 119,800 62,400 38,100 1,000,000Tk 200,000 110,100 56,100 33,200 1,000,000Tk 250,000 100,400 49,700 28,300 1,000,000

4. Loan

Quick loan

In order to meet your unexpected requirement we are providing quick loan against your

deposit amount with us.

Features of our Quick loan facility:

Quick loan can be availed up to 80% on your investment amount

Deposit instrument need to be submitted to ULC (lien) for security purpose

Loan interest rate will be 2% higher than the deposit rate

At the time of settlement of loan instrument will be refunded to the depositor

In case of encashment all loan amount will be adjusted with the principal amount,

if there is any outstanding

No guarantee required for QLF purpose

Syndication Loan

For project requiring large-scale investment, we bring other Financial institutions

to raise funds through syndication where ULC acts as the lead arranger for the financing.

.Our job in this area is to find the right consortium partners and negotiate acceptable

terms and conditions for you. As lead Syndication.

.

Required Time:

The entire process is usually completed within 3-6 months. However, this may vary

based on the complexity of the deal.

Services:

Conducting due diligence of the client

Preparing Information Memorandum

Distributing IM to the targeted financial institutions

Preparing legal documents and coordinating disbursement

Lease Finance

We provide lease Financing facilities to all market segment of customers, Small &

Medium Enterprises, Commercial Houses, Large Corporate organizations.

Under Lease financing we provide :

Industrial machinery and motor vehicles at concessionary term.

Machinery and Furniture for Hospital use.

Truck or Bus for Transportation.

Equipment or Furniture for Official use.

Benefits of our Lease financing

We provide 80%-100% lease financing for a period of 3-5 years. Thereby, you

can avoid capital investment and utilize fund elsewhere.

Your lease rentals can be structured as monthly, quarterly, semi-annually or

annually to match with your cash flow generation.

Lease financing at ULC are customized into number of facilities like, lease local,

sale & lease back and lease foreign. That allows you to lease new or existing asset

from local or foreign vendor.

As ULC is providing capital or financial lease, at the termination of contracts you

will have the opportunity to renew the lease or purchase the asset with a minimum

transfer price.

You can prepay and adjust full or partial amount with receivable only after

adjustment of first six installments.

Construction of repayment schedule using this method allows you to pay lower

interest as principal payments are gradually adjusted with receivables.

Lease rentals are treated as revenue expenditure and are entirely deductable for

tax purposes. This provides a greater tax benefit for you in comparison to

borrowing

Home Loan

We offer you the most convenient home loans to suit your needs. With so many

attractive benefits, the home you always wanted is no longer a dream.

Loans available for:

Purchase/construction of house/apartments.

Renovation/extension of existing house/apartments (for individual).

Renovation/extension of existing office chamber/space (for professionals).

Construction/purchase of commercial building.

Construction of commercially viable project like school, hotel, hospital etc.

Construction of industrial building like factory, godown, warehouse etc.

Eligibility:

25 years and above but not more than 60 years of age

Earning regularly from a sustainable source of employment or business

Key Features of our Home loan:

Loan Amount

Maximum loan amount is Tk 50 lacs or 70% of the purchase price/cost, whichever is

lower.

Repayment Term

1. Individual loan:15 years for normal facility and 20 years in case of Bangladesh Bank

refinancing scheme, but not beyond the 60th birthday of the applicant.

2. Commercial loan: Maximum term is 7 years.

Interest Rate

We offer you a competitive interest rate and low fees on the basis of your financial

status, amount borrowed and repayment terms. Please contact us for your rate.

Repayment

You will repay the entire loan by Equated Monthly Installments (EMI) comprises of

principal and interest calculated on the basis of monthly rests at the rate of interest

applicable and is rounded off to the next taka.

Disbursement

Loan will be disbursed to you in one trench or in suitable installments to be decided by

ULC with reference to the need or progress of construction/ renovation/ extension of the

house.

Security

Registered mortgage of the property financed will be the prime security. Other security

may also be taken on the discretion of the Management.

Prepayment

Your loan can be prepaid partially or in full, at any time before its maturity date.

Insurance

You will be vigilant and the property is duly insured against fire, earthquake and other

hazards, ULC being the sole beneficiary under the policy, for a value as required by

ULC. Premium will be paid by you with loan installment amount.

Term Finance

Term finance is designed for the longer term business purposes where main

theme is to meet up the purpose of working capital finance, generate profitability and

consolidation of the customer’s expansion objectives.

Eligibility:

Where cash flow resources are sufficient to service the longer term debt.

The entrepreneur must have minimum 2 (two) years experience in the same line

of business.

Required documents:

Memorandum and Articles of the company for a Limited Company; (if

applicable)

Trade License of the borrowing company & Certificate of Incorporation.

Company Information with details about Present Production Facility. (Company

profile covering Products, departments, buyers.)

Documents in support of the vehicle, machinery/equipment (eg. Quotation,

Proforma Invoice, Commercial Invoice, Bill of Lading, etc).

Last 3(three) years audited financials (Balance sheet, Income Statement, Cash

Flow Statement) of the concerned unit.

List of all present lenders with sanctioned date, sanctioned limits, outstanding

amount, rate of interest, etc. (Lending + Deposit Relationship).

Trade Licence & TIN of the company

Others, if any

Benefits of our Services:

We provide minimum loan amount of Tk1 lakh for new and existing client.

Your installments can be structured as monthly, quarterly, semi-annually or

annually to match with your cash flow generation.

You can prepay and adjust full or partial amount with the loan account only after

adjustment of first six loan instalments.

Usually for a tenure of 1 to 5 years.

Small Loan:

Small enterprises play an important role in the economic and social development of our

country. To meet their requirement we further customize our facility into small loan

facility .Small enterprises play an important role in the economic and social development

of our country. Create millions of jobs and increase the competitiveness of our economy.

Yet they find it difficult to convince banks due to high costs entailed in granting

loans and the risks to which lenders are exposed.

Considering above, to meet their requirement we further customize our facility

into small loan facility.

Our Collateral free products are:

1. Nokshi (for Woman Entrepreneurs)

2. Mousumi

3. Agrani

4. Briddhi

Eligibility:

Entrepreneurs with minimum 2 years experience in the same line of business.

Business must be a going concern with at least 2 years in operation.

Subject to clean CIB report from the Bangladesh Bank

(1) Nokshi

Focus group: Woman Entrepreneurs

Loan amount (up to): Taka 5 lacs.

Repayment term: 24 months.

Repayment method: Equal Monthly Installment (EMI).

Age limit: 25 to 55 years.

Applicant's yearly income: Taka 3.50 lakh.

(2)Mousumi

Focus group: Small and Medium Enterprise (SME)


Repayment term: 18 months.

Repayment method: Can be structured.



(3)Agrani



Repayment term: 18 to 24 months.




(4)Briddhi



Repayment term: 18 to 24 months.



Channel Finance

Factoring

Factoring of Accounts Receivable is a mode of financing receivables arising out of

supply of goods or delivery of services on credit. This revolving short term financing

facility enables the suppliers/ service providers to realize the maximum portion of the

payment soon after the delivery is made to the buyer.

Sales ledger administration:

The Factor administers and provides detailed reports of the Sales Ledger that are very

helpful for the Client/Supplier's management decision making.

Follow up and physical collection:

The Factor follows up collection in a structured process and ensures physical collection

of payment from Buyers located at different geographical locations.

Advisory Services:

Assist the Client/ Supplier by making suggestion about the credit rating of a Buyer and

thus enable the Client/ Supplier to fix proper credit limit for each Buyer.

Eligibility criteria:

Facility is available to all industries that provides services or deliver products to

corporate entities i.e. institutional buyer/ debtor. As a rule of thumb:

Your business must sell to a credit worthy debtor/buyer on a regular basis

A receivable/ invoice/ bill that can be verified or has an acceptance by the

institutional buyer/debtor

Having multiple institutional buyers/ debtors is even better

Subject to clean CIB report from Bangladesh Bank

Benefits of our Channel financing Services:

We provide loan facility up to certain limits.

Channel financing refrain you from further credit to pay off suppliers, as funds are

directed to Channel partners.

Suppliers or Customers will receive payments right after the delivery of goods or

services. Therefore funds are no longer tied up in receivables.

Release of funds from the Balance Sheet resulting in improvement in financial

Ratios.

Steady source of working capital finance increases purchasing power of your

channel partners, resulting higher sales and profitability.

Simplicity of documentation and approval procedures.

You can use Channel Finance as a marketing tool and strengthen relationship with

Channel Partners.

Work-order Finance

Under this arrangement STF is provided against your Work Order, helping you in

receiving a significant portion of order amount before the delivery of goods or services.

Thereby ensures schedule implementation of your project.

Eligibility criteria :

Work-order facility is available to all industries that provides services or deliver

products to corporate entities i.e. institutional buyer/ debtor. As a rule of thumb:

Your business must sell to a credit worthy debtor/ buyer on a regular basis












Ratios.





Channel Partners.

Distributor Finance:

This arrangement ensures better flexibility through sales expansion or sales retention

without trade credit facility. Also allows you to impose limits on cash discount, bad-debt

losses, and opportunity costs.

Eligibility criteria :

Your business must sell to a credit worthy debtor/buyer on a regular basis












Ratios.





Channel Partners

Revolving Loan

Revolving loan is a tailor-made credit facility, specifically designed for the

companies with seasonal activity, which need to cover their temporary liquidity gaps,

until the collection of the commercial receivables.

Eligibility:

Where cash flow resources are sufficient to service the shorter term debt.

The entrepreneur must have minimum 2 (two) years experience in the same line

of business.

Subject to clean CIB report form Bangladesh Bank.

Benefits of our Services:

We provide minimum loan amount of Tk1 lakh for new and existing client.

Your installments can be structured to match with your cash flow generation.

Usually for a tenure of 90-180 days.

Corporate Finance

(a)Syndication Loan

For project requiring large-scale investment, we bring other Financial institutions

to raise funds through syndication where ULC acts as the lead arranger for the

financing.

Our job in this area is to find the right consortium partners and negotiate

acceptable terms and conditions for you. As lead Syndication.

Required Time:

The entire process is usually completed within 3-6 months. However, this may vary

based on the complexity of the deal.

Services:

Conducting due diligence of the client

Preparing Information Memorandum

Distributing IM to the targeted financial institutions

Preparing legal documents and coordinating disbursement

5. The Clients

5.1 The industrial Policy

Definition of industries according to the policy:

In the manufacturing sectors:

“Large Industry” means an industry in which the value cost of durable resources

other than land and factory building is above 100 million taka.

“Medium Industry” means an industry in which the value/ repair cost of durable

resources other than land and factory building Is 15million and 100 million taka.

“Small industry” means an industry in which the value cost of durable resources

other than land and factory building is under 15 million taka

“Cottage industry” means an industry in which member of a family are engaged

part time or full time in production and service oriented activities.

In the non-manufacturing sector(Trading and other service)

“Large Industry” means an industry in which more than 100 workers work

“Medium Industry” means an industry in which 25 to 100 workers work

“Small Industry” means an industry in which fewer than 25 workers

5.2 Client Segmentation

United Leasing divides its clients into different categories according to the Industrial

Policy in Bangladesh. The different major segmentation are

Manufacturing sector:

ML: Manufacturing Large (Value / replacement cost of durable resources other than land

and factory building is above 100 million taka)

MM: Manufacturing Medium (Value / replacement cost of durable resources other than

land and factory building is between 15 million and 100 million taka)

MS: Manufacturing Small (Value / replacement cost of durable resources other than

land and factory building is under 15 million taka)

Non-manufacturing sector (Trading and other services):

SL : Service Large (more than 100 workers work)

SM: Service Medium (25 to 100 workers work)

SS: Service Small (fewer than 100 workers work)

Currently there are a total 2000 client the services of United Leasing Company. Some of

the major clients of the company are as follows

Rahimafrooz Group

Standard Chartered Bank

Bangas- Tallu Group

United Group

Transcom Group

Shanta Apparels Ltd.

Sts Holdings Ltd. Apollo Hospital

Sts Educational Group- International School of Dhaka

BOC Bangladesh Ltd.

Shamoli Poribhan

Greenline Volvoservice

Groupfour Securitis

Banaful ….etc

6. SWOT analysis of ULC

6.1 Strengths:

It was among the first in this industry and therefore enjoys first mover

advantages.

ULC has very high skilled, energetic, hard working and motivated

human resources.

ULC believes and practices participative management

ULC is engaged in product diversification, this year they have

introduced new products targeting small and medium enterprises.

ULC has a very strong client base among the leasing companies; most

of which are the giant local and multinational organization such as,

British American Tobacco Bangladesh, HSBC, Square, Navana,

Transcom etc.

ULC does not comply with undue political influence.

With its diversified business, ULC is better equipped to compete in an

ever changing and challenging business environment.

5.2 Weaknesses:

Lack of commitment to one huge investment project since they do not

want to take that big risk

Not enough of diversity in the product range e.g. they do not have

auto loans, home loans, marriage loans etc.

5.3 Opportunities:

With growth in the corporate sector, the demand for the lease

financing is also growing and consequently, the lease financing

industry.

There has been a recent booming of the capital market of Bangladesh,

with this in mind ULC could diversify and introduce merchant

banking and securities services

By introducing new products such as car loan, vacationland, etc ULC

can expand its market

By increasing its promotion activities the company can familiarize

itself to urban household outside Dhaka and introduce retail products

that other NBFI’s have not done so.

5.4 Threats:

Continuously increasing inflation rate result in less disbursement of

funds and cost of borrowing funds.

There is a clear trend of increasing competition in the lease market

with the entry of more leasing companies and leasing by commercial

banks.

Among the NBFI’s doing business in Bangladesh, United Leasing

Company is the second largest in terms of credit portfolio which total

around TK. Eight billion at present. However ,the list of financial

services ULC is offering is far shorter than other NBFI’s.

7. Sales Planning

7.1 Sales Planning- Sales planning means how the organization can do the plane to sales

there product and service. It is an important part for any business/organization. For

increasing the sales it is essential. Organization growth rate increase on the sales

planning. If any organization has no proper plane then they must suffer in future. If the

planning is not appropriate then it can affect on the company business expansion, so for

that all organization need to do the proper plan.

7.1.1 Sales territory Design- Sales territory design means how the organization can

design to sales there product. It is an important part of a sales planning. In

this case ULC (United Leasing Company) always design there product for

beneficial of there customer. Always ULC (United Leasing Company) try to

provide best service and quick problem solution. Basically ULC (United

Leasing Company) is triple “A” rated they are specialized in the Lease

finance and they also has the fixed deposit and Monthly savings deposit. All

the deposit interest rate is high only for attracting the customer. They can

given the target to there sales person.

7.1.2 Sales target Determination- Sales target determination means how the

organization can target the sales of their product on the monthly basis. It also on the

part of the sales planning. Sales target can increase the volume of the sales. It is a

most important part of an organization. In the ULC(United Leasing Company) here

there is smart and energetic sales person those can got the sales target and the entire

sales person can try to fulfill the sales target. Basically ULC(United Leasing

Company) can targeted the person who income is high they basically targeted the

government service holder like doctor, engineer and businessmen. They can provide

high interest rate to attract the customer and provide better and fast service to there

customer.

7.1.3 Product-wise sales strategies- ULC(United Leasing Company) has the few

products that they can sell to their customer. They has the fixed deposit this is

basically for the service holder that who can earn more in the year and those

who are interested to got better service and high interest rate. In other product

like monthly savings ULC(United Leasing Company) targeted the people

those who are interested to save the money in the monthly basis and after few

year got an profit that can help them in the future.

7.2 Sales Force Planning

7.2.1 Sales Force Planning- Sales force planning means to how the organization designs

to sell their benefit. In this planning here focus in the why customer come to this

organization why not in the other organization. What the potential benefit they can

provide to their customer. To selling the product of the organization it is most important

because of company potentiality depend on it. . Here basically organization look on the

potential clients in that case ULC(United Leasing Company) given more priority on t he

potential client and give them more facility and design their product structure on their

basis of need.

7.2.2 Sales force requirements determination- In this section here look on the

requirement determination for the sales. In the ULC(United Leasing Company)

here they provide more priority to there customer. Here sales force that are good

initiative and well planned management that can help them to achieve there goal.

In the ULC(United Leasing Company) they have sales person they always meet

to the potential clients and given the latest information that can be help full to

there customer.

7.2.3 Sales force structure design- For any of the organization sales force structure is

a most important part as because of on the basis of structure design return has

been come. If the sales force structure can not be properly designed it can be

create problem for the organization. In the sales force structure here ULC(United

Leasing Company) basically look on their beneficial side. ULC is the specialist

on the house building finance sector also they have the fixed deposit and the DPS

that can be said in the ULC(United Leasing Company) is Easy way deposit,

Children deposit In this deposit scene they provide more facility then other that

can be said to the customer and highlighted to the customer.

7.2.4 Recruitment, Selection, Training- For all organization recruitment, selection

and training is most important as because of if the organization can not choose

proper person for the job then it can not be help full for there organization and it

can be create difficulties for the organization .In this case ULC(United Leasing

Company) always try to recruit those person who have the known person and

they born in those place. In the ULC(United Leasing Company) they recruit the

person on a every year. They can select those person those who can complete

there gradation or appeared for gradation. After the selection they can recruit

them and given training on the one month basis. Fate the training session the

person can join to the job.

8.Personal Selling Activities-

Personal selling is an important factor for any kinds of sells. If the performance of the

sells person is good then that can create an bad impact on the organization. For any

organization personal selling is important because of on the basic of personal selling the

company can earn more. In the depend of personal selling all the organization can

achieve there target. Here the all the organization provide sells target for there sells

person and they can achieve there goal.

8.1 Prospecting – Prospecting is an important task for any sells person. In the ULC

all the sells person target there customer. They basically look on the service

holder like doctor, engineer, businessmen who earn more. In the ULC(United

Leasing Company) all the prospective clients are got benefit and they are give

facility.

8.2 Sales interview- In the first step the sells person of the ULC(United Leasing

Company) they can go to the organization and talk to the all of the employee.

The can give the information of the entire product and the service. After that those

interested too specifically about the product or service they can give them brief

idea to them. After that they can give follow up call or follow up visit, then those

who are interested about this they can open an relation with ULC.

8.2 Sales closing- Those who are interested to deposited in ULC(United Leasing

Company) they can fill up an from. That can be easy task foe any person to fill this also

sells person can help on this. After filling up the from the depositor can give his one copy

passport size picture and one nominee picture attested by the author and the author voter

Identity card. And the cheqe. After that ULC(United Leasing Company) can give a recite

to the depositor and after five the depositor got a certificate.

8.3 Resistance management- If the any of the client are not interested to deposited

on the ULC(United Leasing Company) then the sells person try to find the reason

why they are not deposited in the ULC(United Leasing Company). After that the

sells person can try to manage them if they not interested then they can given

follow up visit after one or two months.

8.4 Feed backing- In the ULC(United Leasing Company) those sells person can fill

up the target they can got the incentives. And also all the sales person got

percentage on the behalf of to doing deposited. In the ULC(United Leasing

Company) performance can be analysis after three months. In the ULC(United

Leasing Company) those who can do the FDR they can get the gift voucher and

the discount card. ULC(United Leasing Company) also provide faster service to

there customer.

9.0 Findings

1. The services of ULC are good comparing to the market; but there is significant

scope of improvement.

2. The ULC needs to make significant effort to improve the employee relationship

with clients.

3. The service quality of the bank is satisfactory; but there is massive scope of

improvement as some of the respondents did not provide positive comment.

4. The environment inside the ULC needs to be improved significantly for

efficient and pleasant banking activities for the customers.

5. The services of the ULC need to be reevaluated to attract customers.

6. Profit rate is the most important factor that is considered by the customers when

they are thinking about FDR/other deposits.

7. To increase customer satisfaction the ULC needs to improve their service

quality by providing more importance on customer’s preference.

In terms of the customers, environment of the bank is quite ok but the services of cash

needs to more fast also more attention need to be given to the customers when they come

for foreign remittance. It’s better if different place/desk is maintained for foreign

remittance.

10.0 Recommendations

A bank is an institution that is to remain active for a long term. In this mean time, if the good will of the bank is affected due to negative word of mouth and poor services; ultimately a major section of the customers will switch the banks because of competitors finding the gap and filling it.

It is recommended that:

1. Steps are taken to implement the new process in order to ensure a smooth service as promised to customers.

2. A new local brand ambassador should be used to promote ULC as a brand.

3. Employees needed to given adequate training to work and handle clients under pressure. In this case both the branch authorities and higher authorities can persuade each other to train the employees.

4. ULC Limited should increase more Consumer Banking activity. Their Consumer banking activity is quite satisfactory but it will be better if they can put attention on individual customer.

5. ULC Limited should pursue advertisement campaign in order to build a strong image among the local Sylheti people. They should carry out aggressive marketing campaign to attract clients. They can give advertisements in local newspaper and magazine, television and neon signs.

6. They should invent other type of deposit to attract more customers which is different from other banks.

7. ULC Limited should maintain more cash and deposit balances with other banks. Because it is desirable that banks keep their cash and balance with other bank to such extent so that it can minimize the chance of liquidity crunch.

8. ULC Limited should develop more strategic planning as to compete with its rival banks.

9. ULC Ltd. may introduce one stop service for its client.

10. Recruit more efficient employees.

11. Conclusion

An organization is only as good as the service it offers. Customer Services at ULC, is

more than just a smile. It is an entire philosophy deeply embedded within very fabric of

the organization. It is the “concern” we have for our customers’ needs, the “care” we

express and the “competence” with which we go all out to fulfill these needs. The

constant support and the “affection” that we add to build long-term relationships. It is

our endeavor to find new ways to improve our offerings, to anticipate problems to

simplify processes - in short to stay true and firm to our strong commitment of a service

with a smile.