Life of a Jobless
Reasons Why I Lost My Job Series

Life of a Jobless: What Made Me Lost My Job?

So it happens that during my early days in the company, problem started to surface. A problem done by some officers in order to drive more money to their pockets. Given our existence, the new batch of employees, we started to investigate what happen and what drives these officers to do such foolishness.

Poor Management System

One of the reason that drives these fellow officers to manipulate the company's resource if the poor management system of the company. Lets take a look on how poor the system is.

The process of loan application starts from promoting the services wherein each credit officer will go into the field and promote the financial services of the company. As a result to this, loan applications starts to drive in the office. These loan applications will then be evaluated for qualification and if passed they will be turn over for credit investigation. They will be personally visited at home, business place or at working place.

The purpose of credit investigation to check if the client has the capacity to pay its applied loan amount. Aside from that, their personality will also be considered and is an essential factor in determining if the client has the intention to pay. Capacity to pay and intention to pay is somewhat given more weight. After the credit investigation, and if found out to be positively able to comply with its loan, they will then be recommended for the creation of their accounts and schedule the release of their loan.

Steps in loan application process:

• Marketing and Promotion
• Process Application
• Credit Investigation
• Recommendation
• Release of Loan

What makes the management system poor is that, the process mentioned above are done by a single person, and that's the credit officer. One single person is doing everything, from promotion to the releasing of the loan. The flaws are there, and its a huge flaws, a temptation attractive enough to entice somebody to do foolishness. The credit officer is the one who will recommend the client, he will be the one to conduct the credit investigation, then proceed to the recommendation, and finally, for release of the loan. Even the HANDLING OF MONEY towards the clients are done by the credit officer.

What you think about the process? Even an uneducated person will not allow this kind processing. The processing of the loans should be done through a concensus, it should be agreed by parties in the management and not by a single person.

I am not trying to blame anybody here, I just wanted to bring out the system that leads to the bankruptcy of the company. The CEO has a good heart and this good heart were abuse by many.

These incident made the company to hire new people to handle the business and thats us. Together with the new GM, they restructured the organization, established a departments to handle the loan processing. The entire system were change to a better one. In this time, the sole function of the credit officer is to promote the services and the processing of the loan application will be handle by the new department called credit committee.

Upon the onset of this new system, credit officers involved on those foolishness were investigated and removed from position. We thought that was all, but we are wrong. Due to the old system, that foolishness had been a trade in the life of most credit officers in the company. They started to surface, others made a voluntary exit to avoid from getting caught but still they were caught because the investigation started to intense which resulted them to pay for their wickedness.

Fast forward, the new management put them to prison. Others are currently paying the money which they erroneously gotten from the company.

The hardest part now is on the client's side because the company's portfolio started turning red (base on my previous post, red means arrears) and goes beyond the allowable risk. The increase of risk were rapidly grow and we started to loss collections. This losing of collection is placing the company in a bad situation because they are having hard times coping up on its operating expenses.

Opening of new branch

The company acquired so many clients around the region and is having hard times managing them, especially now that lots of them are in arrears status. They decided to bring the company closer to them by opening a new branch in Maigo, a municipality in Lanao del Norte. This was the branch that were assigned to my supervision.

The purpose of the branch is just to properly manage the clients and bring all their accounts back in good standing (active clients) with an option to create new clients upon the arrival of the fund coming from the investors.

More of this branch activities will be disclose on my next post.

Hope you are enjoying reading my post and would like to invite you to give opinion.