Talcott Factors understands the Filipino Cash Economy, and intermediates between the lenders to the Filipino Cash Economy and the International Formal Economy.
Talcott Factors, factors accounts receivable, primarily in Metro Manila, The Philippines. Talcott has enjoyed Hedge Fund yields on its portfolio during the past five years.
Talcott has also developed a business of making Portfolio Loans to a local class of company called Lending Investors, a type of non-bank financial institution regulated by Bangko Sentral Pilipinas. Lending Investors are peculiar to The Philippines; small capitalization neighborhood storefront lenders with a typical balance sheet, in pesos, of $250,000 to $500,000. Lending Investors make loans in pesos at rates of interest higher than the local banks; typically 3% to 5% per month versus at 2% per month bank rate. Lending Investors intermediate between the cash economy and the regulated economy; making weekly or daily loan collections in person in cash. Lending Investor loans take Chattel Mortgages on autos, taxis, motorcycles, white goods, and pension accounts as typical collateral.
Talcott Factors makes Portfolio Loans to these Lending Investor companies that show highly predictable performance, in US dollars. Talcott uses in combination a Factor’s Advance Agreement, Dollar Chattel Mortgage and Dollar Promissory Note to secure its collateral from the Lending Investor.