Additional benefits to customerr FOR EARLY PAYMENTS ON THE BALANCE ( for having interest bearing agreeemnts

To:     All

Through:   MRSS

Subject:  MORE BENEFITS TO CUSTOMERS FOR PREPAYMENTS

Background:

1.   Most notes especially in bank penalize prepayment (early payment)

2.    Customers usually ask for discounts/deduction for early payment

3.    Our notes are now interest bearing and thus we have more flexibility to offer discounts to customer for early payment

Objectives:

1.  To generate more sales

2.   To please connect to more customers

What is the offer?

     Discounts of"

    2.5% of collection fee

    6.0 of interest on the balance

   Total 8.5%

  SIMULATION

  Thus a customer bought a P60,000 plot and wants to prepay when 50% has been paid:

    Thus:    P30,000 balance x 8.5% discount 

    Say MA =  P1,600 x 30 months    =   P48,000   x 8.5  =   4,080

    Or base on the balance:      P30,000  x 8.5 =  P2,550

   Which is better?  Have more impact?