Table of Contents

1 Introduction
Sustainability Context 13 The Board of Directors
Stakeholder Inclusiveness
Report Structure 15 Empowering Filipino SMEs in the growing economy

2 Corporate Profile 16 Driven by a strong interest to serve SMEs

Advocacy
Mission and Vsion 17 Strategic partners across multiple industries
Core Values
18 Giving back to the community
3 Performance Highlights
20 2018 Financial Statements
8 Message from the Chairman Emeritus

9 Message from the Chairman and CEO

10 Message from the Vice Chairman and COO

11 Message from the President and CFO

About the Cover

Since 1999, the Philippine economy has illustrated continuous
growth. At the end of 2018, we as a nation achieved an economic
growth rate of 6%. 35% of the our economy has been fueled by
SMEs. SMEs account for 99.6% of all registered businesses and
employ 65% of the work force in the country. - [DTI, 2017 SME
Statistics]

Esquire Financing Inc. strives to empower Filipino SMEs in the digital

age. People are the forefront of our business. In order to serve the
needs of our clients, we foster a family culture that empowers and
inspires our employees.

Here at EFI, we have served a total of 13,736 clients since launch. In

2018, we supported the financial needs of 6,713 business owners.
It is our mission to fuel the dream of entrepreneurs by providing
financial support and business advisory services to achieve success.
 Introduction
Esquire Financing Inc.’s (EFI) 2018 Integrated Annual and Sustainability Report presents the company’s
performance for the fiscal year. Following the Global Reporting Initiative (GRI), this report highlights the
organization’s economic performance, environmental, and social impact.

Sustainability Context
Esquire Financing Inc., the country’s leading non-bank financial institution, has been in operations for 8
years and has catered to over 13,000 SMEs nationwide. EFI, through it’s non-collateral business loans and
business advisory services, has empowered the underserved sector which allows them to stay competitive
in this day and age.

Access to financing remains the biggest hurdle that most SMEs have to overcome in order to scale and
grow their businesses.

Understanding the needs of these SMEs, EFI leveled the playing field by making non-collateral business
loans accessible to all. With EFI’s multiple touchpoints and 7-day turnaround period, SMEs now have the
power to take their business to the next level with just a click of a button.

Stakeholder Inclusiveness
To ensure stakeholder inclusiveness, the Technical Working Team, during the creation of this report,
regularly consulted with the organization’s executive management, clients, partner institutions, partner
communities, governing bodies, non-government organizations, its employees and sales agents.

Report Structure
This Report was conceived and completed by the organization’s key officers spearheaded by the
Marketing and Sustainability team. EFI’s Audited Financial Statements have been reviewed and inspected
by KPMG R.G. Manabat & Co., the Philippine member firm of KPMG International, an independent audit
firm providing quality financial statements audit.

Contact Us
Manila Head Office* Follow us on social media
31st Floor Penthouse High Street South facebook.com/esquirefinancinginc
Corporate Plaza Tower 1 instagram.com/esquire_efi
26th Street, Bonifacio Global City twitter.com/Esquire_EFI
Taguig City, PH 1634
(02) 811 8888 | loans@esquire.com.ph
Access Esquire Financing Inc. Integrated
Annual and Sustainability Report 2018 by
Cebu Office visiting www.esquire.com.ph or
148 Residences Building email lou@esquire.com.ph
Pelaez Street
Cebu City, PH 6000
(32) 254 8204 | gayzel.p@esquiresales.com.ph

Davao Office
Ground Floor K.H. Building Ponciano Street
corner Bonifacio Street, Davao City PH 8000
lourdes@esquire.com.ph

*Formerly loacated at 27th Floor One World Place, 32nd Street,

Bonifacio Global City, Taguig City Ph 1634
 Corporate Profile
Esquire Financing Inc. is a non-bank financial institution catering to Small and Medium
Enterprises nationwide. It provides fast, hassle-free non-collateral business loans tailor fit to the
needs, goals and cash flows of business owners whose vision is to take their business to the
next level.

A proud advocate of SME growth and development, EFI positioned itself as the leader in growth
stage financing serving 13,736 clients in a span of 8 years. EFI has been recognized again as
one of the top 15 finance and leasing companies in the Philippines in terms of total assets, gross
income, net income, loans receivables and equity.

EFI’s operations are handled by seasoned officers and managers with guidance from the
company’s top management and directors, which is spearheaded by EFI’s Chairman and Chief
Executive Officer.

Advocacy
To provide small and medium enterprises (SMEs) access to business financing through its fast,
hassle-free non-collateral business loans, tailor-fit to the needs of the SME market.

Mission and Vision

FUELING DREAMS of entrepreneurs by providing financial support and business advisory
services to achieve success.

FUELING DREAMS of our team by fostering a family culture that empowers and inspires
career growth.

Core Values
Efficiency - We shall work as a team to promote an unparalleled customer experience.

Flexibility - We create possibilities through open communication.

Integrity - Trust and honesty are the pillars of our organization.

Technical Working Team

Project Lead:
Avinash Sujanani
Digital Transformation Intern

Reporting Team:
Kristine Anne Pesquisa Jerome Francisco
Marketing and Sustainability Manager Financial Controller

Lou Zandrian Lobrin Elaine dela Cruz

Marketing and Sustainability Officer Finance Officer

2
2018 Highlights

2018 has been a banner year for Esquire Financing Inc. (EFI) as it hit milestone after milestone on its
8th year. What started out as a small business is now country’s leader in non-bank financing - setting
the gold standard in SME lending business.

Transactions Profitability
Total clients served Return on equity
13,736 SMEs 0.34
(38% higher vs. 2017) (3% lower vs. 2017)

Total new clients served Debt-to-equity ratio

3,682 SMEs 2.14
(60% higher vs. 2017) (11% lower vs. 2017)

Total loan released

Php 13.6 billion Manpower
(65% higher vs. 2017)
Total salaries and benefits paid
Php 42.5 million
Revenue and income (22% higher vs. 2017)
Total revenue
Onboarding
Php 2.87 billion 155 total employees
(46% higher vs. 2017)
(50% more vs. 2017)
Total net income
Php 1.38 billion
(34% higher vs. 2017)

Civic duty
Total taxes paid
Php 545 million
(40.4% higher vs. 2017)
Esquire Financing Inc. Integrated Annual and Sustainability Report 2017
 Proud to be part of the 2018
Top Finance and Leasing
Companies in the Philippines

2nd
Net Income
5th
Loans & Other
Receivables

Php 1,400,189,741.90 Php 9,298,051,825.78

Net income Loans & other receivables

6th Equity
6th
Total Assets

Php 14,917,815,600.27 Php 14,917,815,600.18

Total equity Total assets

NOTE: *Unaudited figures are based on inputs from PFA.

Esquire Financing Inc. Integrated Annual and Sustainability Report 2017
Message from the
Chairman Emeritus
I would never have imagined that when I started the
wholesale business in 1973 that it would become as
sizeable as it is today. It is truly with God’s Grace,
hard work, and the unwavering support of our family,
shareholders, directors, suppliers, creditors, customers,
and employees that this could have been possible. I am
forever grateful for all the assistance every step of the way.

Our business was built on the premise of building

successful partnerships. To this day, that belief and
principle holds true. We are determined to build
relationships with all those involved in helping contribute
to the growth of the Philippine economy through
empowering the SME. We are likewise driven to help
as many businesses as possible by expanding our
distribution footprint and acquisition channels.

Over 40 years have lapsed and we are still scraping the

surface. There are so many businesses left to serve and
even more being registered daily. The challenge and
opportunity remain ahead of us and we will keep striving
and going forward to help fuel the dreams of as many
entreprenurs as we can.

Albert Uttamchandani
Chariman Emeritus

8
 Message from the
Chairman and CEO
The Philippines is a resilient nation whose economy continues to grow in strides. All major indicators
are showing positive trends, and the country is slowly being recognized on the global stage. The
nation only stands to further soar to new heights through the empowerment of SMEs – the sector
that remains the backbone of the country’s economy.

99.6% of the registered businesses are SMEs, but they only comprise a third of economic output
despite employing 70% of the workforce. The continued expansion of our nation’s SME sector
only brings forth more opportunity and we will stand by our clients, all of whom – with hard work,
determination, passion, and sufficient funding – will achieve their goals.

Our mission is to fuel the dreams of entrepreneurs by providing financial support and business
advisory services to achieve success. We take the time to understand what business owners really
need from a financing partner. Ultimately, by advocating for SME growth through financing, we are
helping in the advancement of a sector that can help the Philippine economy become a driving force
in Southeast Asia.

2018 is a year of transformation for Esquire Financing Inc. (EFI). It was the year we crossed the
13,000-client mark and had more than 150 employees in our family. We are building the business to
facilitate our new goal of generating 100,000 customers. This will require us to take advantage of the
best technology and transform our business digitally.

We look forward to 2019 where we move into our new facilities and gear for expansion. Additionally,
we are excited to expand our product offering, embark of new partnerships, and continue to our
advocacy of nation building.

Rajan Uttamchandani
Chairman and Chief Executive Officer
Message from the
Vice Chairman & COO
As entrepreneurs ourselves, we recognize the importance of having a strong financial partner
that helps us grow. It is this realization that has propelled us to build and now continually
improve Esquire Financing Inc. (EFI); the nation’s largest non-bank financial institution that
focuses solely on fueling dreams of SMEs.

In 2018, we disbursed over PHP 13.6 billion and served over 6,700 clients, both of which are
significant increases from the previous years. This was achieved through a dynamic mix of
recruitment, training, process efficiency, technology, and customer relationship management.
On the marketing side, we significantly expanded our reach this year. Website visits have
increased by 114.01% compared to 2017. Our social media reach hit a record high of 5 million
people, of which close to 1 million people visited our site. This figure is continuously growing
month on month.

As a scaling company, creating a streamlined communication process between applicants

and agents is essential. We implemented automated email and SMS messages to guide our
applicants and agents smoothly. With the establishment of our new branch in Davao, we are now
able to reach a new a pool of potential clients. Additionally, we expanded our presence globally
and generated over 2,000 new Ambassadors for Success nationwide.

In 2018, software development was a huge part of the evolution of our business. In order
to accommodate our growing back end requirements, we have incorporated top of the line
hardware and software upgrades. As of now, we are utilizing; BambooHR, Google analytics,
Facebook Business and a Loan Tracking Management system.

We have shown this in the past and our growth this 2018 reflects, not just the profitability of our
company but also the prosperity of our clients. Our continuous efforts to improve our service
leads to stronger client base. 2019 will be no different in our fundamental approach.

Ravi Uttamchandani
Vice Chairman and Chief Operating Officer
 Message from the
President and CFO

2018 is in the books, and it was another record year for Esquire Financing Inc.

The financial fruits of our efforts have been recognized. The company saw a 47%
growth in Financing Income (from PHP 1.95 bil in 2017 to PHP 2.87 bil in 2018).
This led to a 50% increase in Operating Income (from PHP 1.52 bil in 2017 to
PHP 2.28 bil in 2018). Net Income likewise improved 34% (from PHP 1.03 bil in
2017 to PHP 1.38 bil in 2018). Total Equity subsequently surged from PHP 3.47
bil to PHP 4.74 bil while Total Assets grew from PHP 12.13 bil to PHP 14.88 bil.
All financial ratios are likewise highly respectable, owing the company’s stability,
efficiency, well-managed leverage, profitability, and liquidity.

While the financial results exhibit our growth, it is not the key motivator for us
to succeed. Our true economic impact is what we care about the most, and it
is encouraging that we have helped more than 13,000 businesses so far, about
25% of which were acquired in 2018 alone. We pray that the funds lent to the
entrepreneurs have helped them grow their businesses, boost employment, and
generate incremental value to the country’s economy.

Our thrust remains the same – to fuel the dreams of the entrepreneurs we serve.
As such, our core focus continues to be the expansion of our distribution and
sales channels to reach as many new businesses as possible. The expansion
of our direct sales team, recruitment of new agents, and the setup of our Davao
branch are just some of the initiatives undertaken to expand our presence. All
these have necessarily been enforced by the supplemental growth in our support,
operational, and relationship management functions.

Esquire Financing Inc. is ready to keep growing and serving as many new
entrepreneurs as we can reach.

Navin Uttamchandani
President and Chief Financial Officer

11
 Board of Directors
as of December 31, 2018

Rajan Uttamchandani Ravi Uttamchandani Navin Uttamchandani

Chairman and CEO Vice Chairman and COO President and CFO

Dinesh Chulani Donato Faylona Alejandrino Ferreria

Chief Relationship Officer Director and Director
Corporate Secretary

Jose Mario Buñag Rex Mendoza Philip Lynch*

Director Director Director

*Resigned as of end January 2019

Esquire Financing Inc. Integrated Annual and Sustainability Report 2017
 Empowering Filipino SMEs in
the growing economy
Esquire Financing Inc. (EFI) started its operations on April 2011 and immediately made an impact by serving thousands of SMEs
nationwide. Now on its 8th year, EFI has catered to over 13,700 thousand business owners through its fast hassle-free non-collateral
business loans.

As the leader in growth stage financing, we address the need of the undeserved sector and aim to make business loans accessible
and convenient. From the top industries we have served, wholesale and retail trade was the predominant sector (accounting for 47%
of clients).

We pride ourselves greatly on delivering impact to businesses and our nation’s economy.

Top industries served

Manufacturing
7%
Accomodation &
Food service
6%

Other service
activities
14% Others
7%
Wholsesale &
retail trade
47%

Human Health &

Social Work 2%

Professional, Contruction 6%
Scientific &
Electricity, Gas,
Technical 2% Administrative &
Steam & Air
support service 4%
Conditioning
Supply 1% Transportation &
Storage 4%

Data as of December 31, 2018

 Driven by a strong interest
to serve SMEs
The Philippine economy has been growing year on year since 1999. SMEs account for 35% of the Nations GDP, 99.6% of registered
businesses and employ 65% of the work force in the Philippines - [DTI, 2017 SME Statistics].

Sales distribution
Others 4%

Our Direct Sales team is

comprised of 3 divisions: Online
Applications Team (OAT),
Inbound Sales Team (IST) and
Freelance Sales As part of our
Ambassador for success
the Attrition Management Team 39% program, we provide
(AMT). freelancing opportunities
for our fellow citizens and
OAT - focused on generating Direct Sales give them a chance to
clients via our online application earn through their network
portal (www.esquire.ph) - 28% 57% of business owners.

IST - deals with walk-in

clients generated via inbound
marketing efforts - 57%

AMT - handles expired and

dormant clients - 8%

EFI Organizational Chart

Customer Touch Points

Inbound Marketing, Online Application, Sales Agents, Branches,

Email, SMS, EFI Hotline, Social Channels

Customer Relationship Management

Customer Relationship Management, Releasing, Attrition Management

Business Development and Support

Operations, Business Development, Assurance and Compliance, Marketing and Sustainability,
IT and MIS, Administration and Support, Accounting and Finance, Collections

16
 Strategic partners across
multiple industries

Industry Partners

Memberships and Associations

Partnerships with the Country’s Top Banks

17
Giving Back to the
Community

Education
Initiation of supporting projects that promote education and
learning in various levels

Involvement
Initiation of or active participation in campaigns or projects
that support local communities

Development
Creating partnerships to promote opportunities for value exchange and
development among internal and external stakeholders

18
2018 Financial Statements

20