EARN

ROSEMARY
ISAD ON DEMAND
MEZIEM
Solutions
Email:
isad.co rosemary@isad.co
(EOD) BUSINESS
MODEL
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CONTENTS
Table of Contents...................................................1
Overview of the Consumer Lending Market.......2
EOD Customer Profile..........................................2
Value Proposition 3
Market Entry Strategy..........................................5
Business Model 6
Conclusion 6
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OVERVIEW OF THE CONSUMER
LENDING MARKET

PLAYERS IN THE CONSUMER LENDING INDUSTRY

1. Traditional Lenders/Financial Institutions: Commercial Banks, Microfinance Banks,

Mortgage Banks, Wealth Management Companies.
2. Non-Traditional Lenders/Non-Financial Institutions: Digital Lenders (LendTech), Micro-
lenders and Co-operative Societies, Peer 2 Peer Lenders (KiaKia and FINT).
3. Industry Regulators:
- Central Bank of Nigeria: Licensing, Policies.
- Nigerian Deposit Insurance Company (NDIC)
4. Credit Bureaus: Manages information across lenders and determines credit score.
5. Brokers
6. External Debt Recovery Agents

INDUSTRY PERFORMANCE

Average Industry Interest Rate: 7%

According to 2015 statistics released by the Central Bank of Nigeria (CBN), consumer loans saw a
35% percent growth in 3 years with their values increasing from N584 billion in 2012 to N786 billion
in 2015. The number of consumers who obtained loans moved up from three million in 2014 to about
four million consumers in 2015, a 33 per cent growth in one year. Likewise, Intellectual Capital
Advisory Services (Intellecap) reports that Nigeria accounts for 93.79 percent micro credit demand to
the tune of $19.2 billion (N2.82 trillion).

PAY DAY LOAN MARKET

Total Market Size: N 200 billion ($400,000,000)

Total Addressable Market:

Kick-off City: Lagos

Number of Companies: 220

Average Staff Strength: 750

Total Addressable Market: (Annual Contract Value x Number of Possible Accounts)

Minimum Proposed TAM = N26, 190,000 x 220 = N 5,761,800,000

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Maximum Proposed TAM = N1, 300,950,000 x 220 = N 286,209,000,000.00

BREAK DOWN OF TOTAL ADDRESSABLE MARKET SIZE

EOD CUSTOMER PROFILE

Organization Profile

 Companies that have a functional pay roll system

 Companies that already offer some form of employee loans
 Industries: Construction, Oil and Gas, Telecommunications, Consumer Goods, Health Care.

Sample Employee Profile

Profile A – Senior Profile B: Middle Profile C - Officers

Managers Managers

Monthly Salary N5m-N10m N2m-N5m N100k -N2m

% of Total Staff 10% 20% 70%

Total out of Average 75\ 150 525

Staff Strength

EOD OFFER

Proposed Interest Rate: 3%

Proposed Percentage of Total Income offered as Loan: 10%, 20%, and 50%
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Average Monthly Revenue for Profile A

Proposed Salary: 10% Loan 20% Loan 50% Loan

N5m

Interest Rate at 3% 15,000 30,000 75,000

Total Interest rate 1,125,000 2,250,000 5,625,000

Proposed Minimum Monthly Revenue = N1, 125,000 (per company)

Total Annual Revenue: N13, 500,000

Average Monthly Revenue for Profile B

Proposed Salary: 10% Loan 20% Loan 50% Loan

N2m

Interest Rate at 3% 6,000 12,000 30,000

Total Interest rate 900,000 1,800,000 4,500,000

Proposed Minimum Monthly Revenue: N900, 000

Total Annual Revenue: N10, 800,000

Average Monthly Revenue for Profile C

Proposed Salary: 10% Loan 20% Loan 50% Loan

N100k

Interest Rate at 3% 300 600 1,500

Total Interest rate 157,500 315,000 787,500

Proposed Minimum Monthly Revenue: N157, 500

Total Annual Revenue: N1, 890,000

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VALUE PROPOSITION

- Primary Client (Company):

 Extra Employee Benefit to increase employee retention
 Employee compensation without reducing company cash flow
 Seamless Integration to Company Payroll

- Secondary Client:
 Earn on Demand: Get your salary when you need it
 Cut down debt accumulation with a seamless repayment process
 Competitive Interest

- Partner (Hastee)
 Share of the Nigerian Consumer Lending market
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VALUE ARCHITECTURE

Earn On Demand

Management/Partners

Business Development Technology Finance Support Legal

Marketing/Advertising Software Development Accounting

Deals and Partnerships Product Management Settlement

Logistics Quality Assurance

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COST STRUCTURE

Division Subdivision Cost per annum

Business Development Marketing/Advertising N5m

Deals and Partnerships
Logistics N1m

Technology Software Development N15m

Product Management N2.4m
Quality Assurance N2.4m

Finance Accounting N2.4m

Settlement N2.4m

Support N2.4m

Legal N5m

Total N23m

PROFIT EQUATION

Proposed Annual Revenue Proposed Annual Cost Profit

N23,000,000 N5,761,800,000 5,738,800,000

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MARKET ENTRY STRATEGY

- Pilot Customer Base:

Industry Company Staff strength

Construction WICHTECH 500

Oil and Gas MOBIL OIL 1000

Telecommunications MTN Nigeria 1000

Consumer goods and services NIGERIAN BREWERIES 1000

Healthcare GLAXOSMITHKLINE 500

NIGERIA

- Conversion Rate: 5%, 10%, and 15%

- Interest Rate: 3%

CASH FLOW WITH DIFFERENT CUSTOMER PROFILES

-WICHTECH

Profile A – Senior Profile B: Middle Profile C - Officers

Managers Managers

Monthly Salary N5m-N10m N2m-N5m N100k -N2m

% of Total Staff 10% 20% 70%

Total out of Average 50 100 350

Staff Strength
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Average Monthly Revenue for Profile A (50 staff)

Proposed 10% Loan 20% Loan 50% Loan

Salary:
N5m

Interest at N15,000 N30,000 75,000

3%

Conversion 5% 10% 15% 5% 10% 15% 5% 10% 15%

rate

Total N45,000 75,000 120,00 90,000 150,000 240,00 225,000 375,000 600,000
Interest 0 0
Rate

Proposed Minimum Monthly Revenue = N45, 000

Average Monthly Revenue for Profile B (100 staff)

Proposed 10% Loan 20% Loan 50% Loan

Salary:
N2m

Interest at N6,000 N12,000 30,000

3%

Conversion 5% 10% 15% 5% 10% 15% 5% 10% 15%

rate

Total 30,000 60,000 90,000 60,000 120,000 180,00 150,000 300,000 450,000
Interest 0
Rate
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Average Monthly Revenue for Profile C (300 staff)

Proposed Salary:
10% Loan 20% Loan 50% Loan
N100k

Interest at 3% 300 600 1500

Conversion rate 5% 10% 15% 5% 10% 15% 5% 10% 15%

Total Interest 13,50

4,500 9,000 9,000 18,000 27,000 22,500 45,000 67,500
Rate 0

- MOBIL OIL

Profile A – Senior Profile B: Middle Profile C - Officers

Managers Managers

Monthly Salary N5m-N10m N2m-N5m N100k -N2m

% of Total Staff 10% 20% 70%

Total out of Average 100 200 700

Staff Strength
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Average Monthly Revenue for Profile A (100 staff)

Proposed
10% Loan 20% Loan 50% Loan
Salary: N5m

Interest at
15,000 30,000 75,000
3%

Conversion
5% 10% 15% 5% 10% 15% 5% 10% 15%
rate

Total
Interest 75,000 150,000 225,000 150,000 300,000 450,000 375,000 750,000 1,125,000
Rate

Average Monthly Revenue for Profile B (200 staff)

Proposed
10% Loan 20% Loan 50% Loan
Salary: N5m

Interest at 3% 6,000 12,000 30,000

Conversion rate 5% 10% 15% 5% 10% 15% 5% 10% 15%

Total Interest
60,000 120,000 180,000 120,000 240,000 360,000 300,000 600,000 900,000
Rate
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Average Monthly Revenue for Profile C (700 staff)

Proposed
Salary: 10% Loan 20% Loan 50% Loan
N5m
Interest at
300 600 1,500
3%

Conversion
5% 10% 15% 5% 10% 15% 5% 10% 15%
rate

Total
Interest 10,500 21,000 31,500 21,000 42,000 63,000 52,500 105,000 157,500
Rate

- MTN NIGERIA
Profile A – Senior Profile B: Middle Profile C - Officers
Managers Managers

Monthly Salary N5m-N10m N2m-N5m N100k -N2m

% of Total Staff 10% 20% 70%

Total out of Average 100 200 700

Staff Strength
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Average Monthly Revenue for Profile A (100 staff)

Proposed
10% Loan 20% Loan 50% Loan
Salary: N5m

Interest at
15,000 30,000 75,000
3%

Conversion
5% 10% 15% 5% 10% 15% 5% 10% 15%
rate

Total
Interest 75,000 150,000 225,000 150,000 300,000 450,000 375,000 750,000 1,125,000
Rate

Average Monthly Revenue for Profile B (200 staff)

Proposed
10% Loan 20% Loan 50% Loan
Salary: N5m

Interest at 3% 6,000 12,000 30,000

Conversion rate 5% 10% 15% 5% 10% 15% 5% 10% 15%

Total Interest
60,000 120,000 180,000 120,000 240,000 360,000 300,000 600,000 900,000
Rate
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Average Monthly Revenue for Profile C (700 staff)

Proposed
Salary: 10% Loan 20% Loan 50% Loan
N5m
Interest at
300 600 1,500
3%

Conversion
5% 10% 15% 5% 10% 15% 5% 10% 15%
rate

Total
Interest 10,500 21,000 31,500 21,000 42,000 63,000 52,500 105,000 157,500
Rate

- NIGERIAN BREWERIES

Profile A – Senior Profile B: Middle Profile C - Officers

Managers Managers

Monthly Salary N5m-N10m N2m-N5m N100k -N2m

% of Total Staff 10% 20% 70%

Total out of Average 100 200 700

Staff Strength
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Average Monthly Revenue for Profile A (100 staff)

Proposed
10% Loan 20% Loan 50% Loan
Salary: N5m

Interest at
15,000 30,000 75,000
3%

Conversion
5% 10% 15% 5% 10% 15% 5% 10% 15%
rate

Total
Interest 75,000 150,000 225,000 150,000 300,000 450,000 375,000 750,000 1,125,000
Rate

Average Monthly Revenue for Profile B (200 staff)

Proposed
10% Loan 20% Loan 50% Loan
Salary: N5m

Interest at 3% 6,000 12,000 30,000

Conversion rate 5% 10% 15% 5% 10% 15% 5% 10% 15%

Total Interest
60,000 120,000 180,000 120,000 240,000 360,000 300,000 600,000 900,000
Rate
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Average Monthly Revenue for Profile C (700 staff)

Proposed
Salary: 10% Loan 20% Loan 50% Loan
N5m
Interest at
300 600 1,500
3%

Conversion
5% 10% 15% 5% 10% 15% 5% 10% 15%
rate

Total
Interest 10,500 21,000 31,500 21,000 42,000 63,000 52,500 105,000 157,500
Rate

- GLAXOSMITHKLINE NIGERIA

Profile A – Senior Profile B: Middle Profile C - Officers

Managers Managers

Monthly Salary N5m-N10m N2m-N5m N100k -N2m

% of Total Staff 10% 20% 70%

Total out of Average 50 100 350

Staff Strength
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Average Monthly Revenue for Profile A (50 staff)

Proposed 10% Loan 20% Loan 50% Loan

Salary:
N5m

Interest at N15,000 N30,000 75,000

3%

Conversion 5% 10% 15% 5% 10% 15% 5% 10% 15%

rate

Total N45,000 75,000 120,00 90,000 150,000 240,00 225,000 375,000 600,000
Interest 0 0
Rate

Average Monthly Revenue for Profile B (100 staff)

Proposed 10% Loan 20% Loan 50% Loan

Salary:
N2m

Interest at N6,000 N12,000 30,000

3%

Conversion 5% 10% 15% 5% 10% 15% 5% 10% 15%

rate

Total 30,000 60,000 90,000 60,000 120,000 180,00 150,000 300,000 450,000
Interest 0
Rate
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Average Monthly Revenue for Profile C (300 staff)

Proposed Salary:
10% Loan 20% Loan 50% Loan
N100k

Interest at 3% 300 600 1500

Conversion rate 5% 10% 15% 5% 10% 15% 5% 10% 15%

Total Interest 13,50

4,500 9,000 9,000 18,000 27,000 22,500 45,000 67,500
Rate 0