Business Model



Payroll Loans

Payroll loans are the core portion of our credit portfolio, with a share of 85% at the closing of 2012. They are addressed to governmental agencies’ unionized workers, and are occasionally offered to public-sector retirees or pensioners. This loan is based on an agreement with the distributors who promote our loan product to the employees of companies and institutions, and it is repaid through payroll charges. This product is not promoted with Crédito Real’s image, but it is operated by the company.

With the acquisition in 2011 of a minority interest in the companies Kondinero and Credifiel, we reinforced our purpose of positioning as the leading company in payroll loans, thus contributing to the development of the financial system by granting loans to employees who wish to potentiate their wellbeing. Continuing with the strategy of consolidating its position in the payroll loans market, in October 2012 Crédito Real entered into a subscription agreement with all the shareholders of Grupo Empresarial Maestro, a leading company in the promotion of such loans, in order to initially acquire a minority interest in said company’s capital stock.

Crediequipos

In March 2007, we implemented a group loan program under the scheme of crossed joint and several obligors, with the “CrediEquipos” brand. Today, we are one of the top 10 group loan companies in Mexico, according to ProDesarrollo.

Crediequipos is oriented to entrepreneur or micro-enterprising women who require working capital in order to maintain and grow their businesses, in the C and D economic segments, which because of their characteristics have been usually disregarded by the traditional financial system.

Our loans are intended to support the growth and development of our clients’ businesses. They create groups with each other, thus facilitating the analysis of the joint and several loans and the proper management of such.

Our promotional force is focused on the creation of the loan groups, which are composed by 12 to 25 women, in average. This market has a strong growth potential given that 20 million Mexicans require financing. However, competition has also significantly increased.




The year 2012 was the year of consolidation of our strategy in this market, after the strong growth observed in 2011. We focused on structuring our processed, human capital, and infrastructure in order to properly underpin the foundations of growth. The economic activities funded by CrediEquipos are quite diversified, as well as the locations where the loans are granted. The average loan amount is $2,275.0, which represents a low risk.

Loans for Durable Goods

By means of the loans for durable goods, we grant and operate credit services in several stores of furniture, electronics and white goods, among others, rendering a comprehensive and high-quality service that is rather convenient for our chain of value. In addition to providing their clients with loans, we increase their sales through advertising and promotion, and reduce their costs and risks, as they base their operations in this area on our loan and business experience, thus significantly increasing their profitability. This way, we are in charge of:



Our business support is very important, since we develop several promotion strategies for our business partners, ranging from design to implementation, at all times looking after our business partners’ image. Another decisive factor in this division’s good performance is the swift process of credit analysis —its quality, and the quick acceptance and allocation of the loan to the end customer.

The consumer goods loan is favored by economic stability, particularly as to employment rate, inflation, and interest rates.

The portfolio of loans for durable goods increased by 10.4% as compared to 2011 resulting from the aggressive promotion campaigns, more efficient processes, and favorable economic conditions.

The most commonly financed goods include: