Hello ladies and gentlemen! This is a CNC business talk program. I am Um Sarin coordinating in this Program. This afternoon, we have a great honor to interview Mr. Chhuon Serey Vichet, Operation Manager of GL Finance in order to converse in this business talk program. How do you do, Mr Vichet! How do you do! Thanks for having spent your valuable time as an honorable guest to join this Business Talk program. Could you introduce yourself? Hello Ladies and Gentlemen who are watching Business Talk program on CNC channel this afternoon. My name is Chhoun Serey Vichet. I am the Operation Manager of GL finance in charge of Honda Motorcycle Leasing. Our company is providing Leasing Services with many products. Today, I would like to provide audiences an understanding of how we are operating. Thank you, Mr. Vichet At first, I want to ask you is that “What is GL Finance?” GL Finance… Actually, I would like to deliberate words “GL” first. GL stands for Group Lease It is a subsidiary company of GL in Thailand listed in Stock Exchange Thailand So companies that registered themselves into Stock Exchange market in order to guarantee the stock price, they will have to operate very professional and transparently GL Finance is the FIRST leasing company licensed by National Bank of Cambodia When did the company start operating in Cambodia? And how many cities and provinces are you operating now? Today, we present in all Honda dealers and sub dealers among 23 cities and provinces in Cambodia. However, I would like to clarify that although we are operating in 23 cities and provinces, it doesn’t mean our customers who are in the two other cities and provinces cannot apply for our service. Today, we don’t have presence in Mondulkiri and Kep but the customer in Kep can come to apply for our service at Honda dealers and sub dealers in Kampot, Mr. Vichet, could you advise and explain how to get Leasing Service form GL Finance? Thanks… In general, Cambodian people understand more about Financial Services from Micro Finance Institute, it is so-called Micro Finance but our company is new company providing a new Financial Services that is called Leasing or we can start from word “Rent”. So, that means the company provide Rental Services monthly and the customers pay us monthly like they simply rent something. However, the main point is that when the customer finishes the contract term in 1 year till 5 years, that Honda motorcycle will belong to the customer. According to what you have mentioned, the company provides only Leasing service for Honda motorcycle, not something else, right? As of today, we provide Leasing Services not only new Honda motors, we also provide Leasing Services for new Kubota Agricultural Machineries and Solar Panel. Could you tell me for the Leasing process? For example, if I want to Lease a motor, how much should I have to pay to get a motorcycle? And when I get a motor how much do I pay for remaining leasing? All customers who wish to apply for our Leasing Services Firstly, they must be Cambodian, Secondly, they must have a specific living address and if the customer lives in the rental house, we require them to certify the current address from villager or Sangkat authority Thirdly, our company will evaluate their income to ensure that they can afford Leasing or not. The customers can select our service with just 10% to 70% Advance Payment and customers can also choose from 1 year to 5 years as Leasing Term. For example, if a motorcycle costs US$ 2,000 our customers can pay Advance Payment only 200$ which is 10% of the motorcycle. So, the customers can get a motor immediately for their living lives. So, how much do the customers have to pay per month? We would like them to visit us at all Honda dealers and sub dealers in order to obtain further information, then we will inform them how much they have to pay monthly. Generally, we wish them to compare our Leasing Services as if they are Renting our motorcycle and how much they have to pay monthly. Thank you and let’s have a break Hello Ladies and Gentlemen! Let’s continue our Business Talk program! Mr. Vichet, you talked about our Cambodian people can come to Lease motorcycle to utilize in their living lives by having some Advance Payment, currently, how many lessees are there who are using to Leasing Services from your company? What if the customers do not pay back to the company? Thank, you! From the time we started operating in 2012 till now, there are about 30,000 lessees having used our Leasing Services. In this case, we would like to show about the differences between Micro Finance and Leasing Services Actually when they Lease, there is no much difference from an ordinary Rent. When they stop Renting, they must return the object For example, they hire cars, motors and they want to stop renting, they have to return those objects to the owner. Thus, we are operating in the same way during the Contract Term. Let me give example, a customer Leases with us for 3 years and that customer paid us 2 years and a half because s/he cannot afford paying more Hence, our service is good, that customer just returns us a motorcycle because it belongs to GL Finance which we provided a Rental Services. So, when a customer stops renting, that customer can return a motorcycle to us Another great benefit to our all Cambodians is that when the customer returned a motorcycle to us, we will estimate motorcycle price following to market price. If the left cash still owes the company, example, the customer still have US$ 500 balance to pay and the motor can be sold US$ 700, we will take only US$ 500 and the remaining cash US$ 200 will be returned to the customer In contrary, if the lessee still have US$ 500 balance to pay but the motor is too old and we can sell it with price only US$ 400, there is still US$ 100 more. In this case, we don’t require the lessee pay us the balance. We accept only US$ 400 and everything is settled If the lessee cannot afford paying more, the lessee must return the motor and that motor must be taken to sell in order to estimate the price? Yes! If the customer is affordable to pay, the lessee must pay more but if the motor is still high quality and it is sold with high price, so the customer will be returned some cash. After selling, if the Selling Price is more than the Balance, so we will return the Exceeding Cash to the Lessee For a few year of your operation, have you ever faced someone not paying back to company? Normally, every business always faces problem The risk occurred and so we act as per our policy We will find our motorcycle We just want our motor back to the company Now-a-day, even though we are facing some problems in the market, we have never made and sentenced to our customer yet I would like you to briefly differentiate between GL Finance and Micro Finance Because GL Finance is new our Cambodian people and most of them understand much about Micro Finance Hence, I would like to differentiate between this two Micro Finance requires our Cambodian to borrow money. In short, they borrow the money and take them to buy something For example, the customer borrows US$ 2,000 from Micro Finance Institute to buy a motor. So that motor belongs to the customer Consequently, by law, the customer needs to pay back US$ 2,000 to that Micro Finance Institute because the customer debts to that MFI For us, customer is Renting a motorcycle, and let’s say a motorcycle costs the same US$ 2,000 The customer is obliged to pay for Rental Fee. Look like they are not in Debt with us Yes, they are Renting our motorcycle This is the difference! One is in Debt and the other one is in Rental Secondly, all Micro Finance Institute require Collateral but for us, we do not require Collateral Thirdly, they are in Debt but with us, they are no in debt due to Rental condition These are some differences between Micro Finance Institute and GL Finance At last, do you have any recommendation to audience for your company? Thank you! I would like to inform to all Cambodian people and the audiences who are now watching CNC that our GL Finance is located along Kampuchea Krom Blvd., Sangkat Mittapheap, Khan 7 Makara, Phnom Penh We present in al Honda dealers and Honda sub dealer all over Cambodia totally 139 So our Cambodian people can find our Leasing Services easily without any concern on the consequence in the future. Thank you, Mr. Vichet who spends your valuable time to join our Business Talk on CNC channel today Good Bye!