MANILA CREDIT CORPORATION (MCC) was incorporated on June 1977 and was granted by the Securities and Exchange Commission (SEC) a Certificate of Authority to operate as a financing company on the same year.
MCC started its financing operation with an initial capital of only P500,000.00. Mainly, it served the needs of both land-based and sea-based overseas contract workers (OCWs) deployed by its affiliate companies, Trans-Phil Marine Enterprises, Inc. and Trans-Phil Manpower Resources, Inc. MCC also served as the venue for the optimum utilization of surplus or idle funds of the entire Trans-Phil Group.
As resources grew, MCC expanded its reach. It started to serve outside borrowers offering a wide array of financing services and promoting them as it competed head on with small “5-6” private lenders, lending investors, other financing companies, rural banks and other consumer banks. Here, a significant shift in the company’s portfolio began and at present, the bulk of MCC’s market (or about 98% of outstanding loans) are small to medium entrepreneurs or businessmen who mortgage either real estate or chattel assets as securities for their working capital loans. Secured lending has become a standing policy intended to shield the company from any adverse development in our volatile business or economic climate. The remaining 2% refer to its original loan sources composed mainly of contract workers and employees.
As an organization, MCC consolidated its operational resources by enhancing the skills of its manpower, installing and upgrading its technology (computer hardware and software), and by actively participating as member/contributor to the industry’s leading credit association, the Credit Management Association of the Philippines (CMAP). MCC is also a former member of the Philippine Finance Association (PFA).
From 1991 onwards to the present, the company recorded remarkable growth in all its financial indices as year-to-year growth was achieved in record performances. By 1995, Total Assets crossed the P100 Million mark. But as with the entire bank and financing industry, the company was not spared by the financial crisis that hit the Asian region sometime in mid-1997. This crisis continued for most of 1998 and again by year 2000 (to early 2001) when the Philippine political scene turned for the worse. MCC absorbed numerous major setbacks in terms of lower financial and market performance compared to its historical record. And to cushion itself from the negative impacts from these external developments, MCC consistently applies quick and appropriate corrective response in terms of stricter credit policies and more prudent controls on its expenditures/exposures. It is for this effort plus its tested policy to keep the company practically fully secured in all its exposures, that MCC remained stable compared to its many faltering competitors.
The company underwent a major reorganization in the middle of 2006 with the replacement of some of its key officers and staff. Several policy changes were also implemented that included more resolute collection and foreclosure guidelines that effectively converted non-performing accounts into acquired real properties that made substantial contributions to the company’s net income in terms of profits derived from sale of houses and lots. Benefiting from its affiliation with a sister company involved in the construction of townhouses, MCC has made it a standard practice to improve on its foreclosed properties to make them more attractive to prospective buyers and to generate higher sales values. Aside from mere repairs and refurbishing, it has even embarked in commissioning construction of brand new houses on some foreclosed vacant lots seen with housing potential and marketability. This move of constructing houses on vacant lots has proven effective in moving otherwise difficult to sell vacant lots. Needless to say, sale of house and lot and even vacant lots is on the upswing as the Philippine economy is experiencing record GDP growth in 2007. MCC, however, is not veering from its core business of financing as it continues to seek ways and means of expanding its loan portfolio. As at March, 2008 Total Assets stood at P186 Million.
While many financing companies, even big banks, have come and gone over the years, MCC has gradually flourished, continued to adapt and innovate to its ever-changing market conditions and has grown as a solid and respected firm in the financing industry prudent and cautious in its business and lending policies. Today, MCC remains steadfast and eager to meet the challenges of the future.