After receiving a licence from the National Bank of Cambodia in August, the microfinance institution Prince Finance has started its business to cater to the financial needs of local and foreign customers. Post Plus sat down with Hon Sorachana, the board director of the Prince Finance Plc, to discuss the launch.
Why did you and your institution decide to invest in the microfinance business through Prince?
Initially I witnessed fast economic growth in Cambodia and that Cambodian people are willing and ready to start up businesses to better their standard of living. The demands for financial services and loans are increasing and have been made available to high- and low- income groups, which requires microfinance institutions like Prince Finance to establish a policy to coordinate different kinds of customers who are in need of loan services to start their businesses for example.
We are able to provide general financial services. This will help society move forward and grow sustainably. Speaking of these reasons, the microfinance institution Prince Finance was established under the vision of ensuring trust with the customers and to contribute to the development of the society as we offer loan services to SMEs.
What is the value of the initial investment of Prince Finance? How did the microfinance institution start its business? How many staff members do you have?
Prince Finance has enough assets to provide various loan services to customers. We set up headquarters along Mao Tse Tung Boulevard in Phnom Penh with 72 skilled staffers who are now working. Some are still in training, and more are to be recruited and trained to work in other branches. The number of staff, branches and assets will continue to increase through 2016. Then we will extend our business to other provinces around Phnom Penh. That doesn’t mean that we only allow the services to the customers in Phnom Penh. We are also open to customers from the provinces as well as foreigners who want to contribute to the development in Cambodia.
What kinds of customers does Prince Finance target?
Prince Finance welcomes all customers in Cambodia from all classes and foreigners. Prince Finance provides financial services based on the need. The requirements to receive loans from us are easy, not complicated.
Can you tell the readers about the strengths of your institution?
Prince Finance is a young microfinance institution as it was established by young, but talented, creative, capable and experienced founders. Prince Finance has six types of financial services on offer: 1) Smallest loans and small and medium loans. 2) Loans for skills development. 3) Loans for staff (of organisations and of public staff). 4) Loans to buy houses, condos and for house reparation. 5) Loans for foreigners. 6) Refinancing loans. All these loan services are provided to the customers with a fair interest rate based on the needs and time frame that the customers want. The lending period ranges from one year to 20 years – regardless of the type of the customer.
What are your strategies to attract customers?
The first branch is the starting point for the trademark of Prince Finance Plc in the microfinance market in Cambodia and the other branches are under pending operation. Today, Monday, November 2, people in Phnom Penh will see our promo campaign led by our staff members, and an event by 15 tuk tuks and 15 cyclos as they will parade along Kor Ky Market, Chaom Chao and along National Road 6 in Russey Keo Khan.
Hon Sorachana is a board director of Prince Finance Plc with a masters degree in business management from France. In Cambodia he has accumulated experience in working in many sectors including IT, education, insurance and financial services.