Realty firms form credit coop

TO promote responsible lending and borrowing, a group of Cebu realty firms formed a credit cooperative that will allow its member agents to access funds to sustain their needs and operations.

Society of Cebu Realty Firms, Inc. (SCRFI) president Edwin Mira said brokers are constantly the source for cash advances by real estate agents.

Realtor Samuel Lao added that agents are not able to get their sales commissions immediately due to the easy payment schemes that developers offer to buyers.

“They borrow money from us (brokers) to cover their overhead expenses. We can’t say no because we don’t want them to be discouraged from work. Now, we will refer them to SCRFI Credit Cooperative,” he said.

Initially, only the licensed real estate agents of SCRFI member firms will be able to benefit from the cooperative, said Mira.

There are 22 member-firms and about 200 agents under SCRFI-the first formal organization of realty firms in the country. It was formed in 2004.

“The cooperative is an enhancement of the support that the group gives to its members,” he said.

To qualify, borrowers will have to pay the required membership dues and attend pre-membership training and orientation.

Mira said SCRFI has initiated controls to sustain the credit cooperative, such as forming a credit committee to investigate or verify the applications of borrowers, pegging a credit limit of about 80 percent of the desired amount of money, and requiring a collateral for loans that meet or exceed the credit limit.

SCRFI members have yet to formulate detailed guidelines on possible cases involving borrowers going on default.

Each of the 22 member-firms has shelled out P4,000 to set up the cooperative that is expected to be fully operational soon.

Richard Asares, chairman of the board of the credit cooperative, said it is estimated to earn about P22,145 revenues on its first year of business operations, more than P25,000 on the second year, and around P36,000 on the third year.

Mira believes that having a credit facility for real estate agents will further boost the performance of the real estate industry in Cebu.