Talcott Factors focuses on Portfolio Loans to Lending Investors
Talcott Factors’ typical loan starts at $12,500 against a $19,000 to $25,000 portfolio of Peso loans for collateral. Talcott Factors will steadily increase the initial loan amount as the loan performs to the extent of the Lending Investor’s collateral and balance sheet. Lending Investors typically have, in Pesos, $250,000 to $500,000 in capital, so maximum loan amounts would be $125,000 to $250,000 for such Lending Investor.
Lending Investors make loans to their community of Cash Economy Borrowers; daily or weekly collecting their interest and capital in cash, and depositing that into their own bank account.
Talcott Factors’ loans to Lending Investors advance credit to the Cash Economy Borrowers by intermediating for the Lending Investors with the Formal Economy.
5. Under Portfolio Loans — Collateral
Talcott Factors focuses on making Portfolio Loans to Lending Investors; community non-bank lenders in the Philippines.
Collateral for these loans is made up from amongst Lending Investor loan portfolios on cars, taxis, commercial trucks, UV Express vans, motorcycles, sidecar motorcycle taxis, and White Goods.
Talcott Factors typically advances Portfolio Loans in US Dollar denominations, against loan portfolios in Philippine Pesos.
Talcott Factors secures 150% to 200% of Peso Collateral in its US Dollar loans.
Lending Investors can re-loan these funds either in Peso loans, or themselves hedge issuing Dollar loans. Lending in US Dollars reduces the interest rate to the borrower.
Lending Investors grant loans to Cash Economy borrowers at rates higher than bank rates to Formal Economy Borrowers. Typically, Lending Investors charge 3% to 5% per month versus a Bank Rate of 2% per month.