SALES MANAGEMENT IN CONSUMER DEPOSIT

PRODUCTS IN FINSNCE AND LEASING COMPANIES

A STUDY ON
UNITED LEASING COMPANY
1. Introduction
1.1-Background of report
1.2- Objective of the report
1.3-Scope and Methodology
1.4- Limitations
2. The Company
2.1. Duncan Brothers (Bangladesh) Limited
2.3. Corporate objective
2.4 The sponsors and shareholding structure-
2.5. The Management
2.5.1. Board of director
2.5.2 -Milestones
2.5.3 - Branches Opened
2.5.4- Our Management
2.5.5. Organization Structure
2.6 Company Performance
2.7. Mission, Vision and Goal of the Organization
3. Investment Services
4. Loan
5. The Clients
5.1 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. Finding
10. Recommendations
11. Conclusion
Introduction
1.1-Background of report
The 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 report

The 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 Methodology

Primary 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- Limitations
The 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 Company
United 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) Limited

The 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 Plc

The 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 Plc
Camellia 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 objective
The 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 Shareholding

United 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 Investment

Products ... 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 Director

Mr. M. A. Azim : Deputy Managing Director
Mr. M. Ataul Hoque : General Manager & Company Secretary

Mr. Mohiuddin Rasti Morshed : Head of Corporate & Syndicate Financing

Mr. 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 & Admin

Mr. Shahidul Islam Mazumder : Head of ICT
Ms. Sabrina Mehnaz : Head of Human Resource
Ms. Sharmi Noor Nahar : Head of Board Secretariate
Mr. 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

Marketing
Corporate CRM MIS Accounts Treasury
Service

Monitoring
Medium
Enterprise

Small
Enterpriser

Factoring

Retail
Marketing
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 Deposit

A fixed return investment allowing you to withdraw or reinvest profit or principal at
maturity.

Earn Ahead Term Deposit

This 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 Deposit

Under 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 return

Due 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 Return after Years (in Taka)

Size 3 Years 3.5 Years 4 Year 4.5 Years 5 Years

Tk 1000 41,500 49,500 58,000 67,000 76,000

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

Millionaire Scheme

Type Initial Installment Size (in Taka) Principal

Deposit 3 Years 5 Years 7 Years @ maturity
Monthly Tk 050,000 22,700 12,200 7,700 1,000,000
Tk 100,000 21,100 11,100 6,900 1,000,000
Tk 150,000 19,500 10,100 6,100 1,000,000
Tk 200,000 17,900 9,100 5,300 1,000,000
Tk 250,000 16,300 8,000 4,500 1,000,000
Quarterly Tk 050,000 68,700 37,000 23,600 1,000,000
Tk 100,000 63,900 33,800 21,100 1,000,000
Tk 150,000 59,100 30,700 18,700 1,000,000
Tk 200,000 54,300 27,600 16,300 1,000,000
Tk 250,000 49,500 24,400 13,800 1,000,000
Semi Tk 050,000 139,200 75,000 47,900 1,000,000
Annually Tk 100,000 129,500 68,700 43,000 1,000,000
Tk 150,000 119,800 62,400 38,100 1,000,000
Tk 200,000 110,100 56,100 33,200 1,000,000
Tk 250,000 100,400 49,700 28,300 1,000,000

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 Tenure
Double Money Return 7 Years
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)
• Loan amount (up to): Taka 5 lacs.
• Repayment term: 18 months.
• Repayment method: Can be structured.
• Age limit: 25 to 55 years.
• Applicant's yearly income: Taka 2.50 lakh.

(3)Agrani
• Focus group: Small and Medium Enterprise (SME)
• Loan amount (up to): Taka 6 lacs.
• Repayment term: 18 to 24 months.
• Repayment method: Equal Monthly Installment (EMI).
• Age limit: 30 to 55 years.
• Applicant's yearly income: Taka 2.50 lakh.

(4)Briddhi
• Focus group: Small and Medium Enterprise (SME)
• Loan amount (up to): Taka 12 lacs.
• Repayment term: 18 to 24 months.
• Repayment method: Equal Monthly Installment (EMI).
• Age limit: 30 to 55 years.
• Applicant's yearly income: Taka 2.50 lakh.
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
• 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.

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

• 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

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.