FACULTY OF BUSINESS AND MANAGEMENT

DIPLOMA IN BANKING (BA119)

CREDIT MANAGEMENT (FIN368)

BUSINESS PLAN & CREDITWORTHINESS ANALYSIS REPORT :

LOAN SCENARIO 1

PREPARED FOR :
MADAM SHAHIRA BINTI ABDUL JABAR

PREPARED BY :
JBA1195B (GROUP 3)

NO. GROUP MEMBERS STUDENT ID

1. AISYA NADIRAH BINTI ARIF MUSTANZA 2019222986

2. AMIRAH SYAHIRA BINTI MD SHAFIE 2019225444

3. NURNAJWA BINTI KHAIRUDDIN 2019237356

4. NURUL SAFFIYA IZZIE BINTI ISMAIL 2019233056

5. NURHAZRIN SYAZWANI BINTI HALIM 2019402884

SUBMISSION DATE :
16th DECEMBER 2021
TABLE OF CONTENT

NO. CONTENT PAGE

1.0 INTRODUCTION 3

2.0 BUSINESS DESCRIPTION 4-6

2.1 BUSINESS BACKGROUND
2.2 NAME AND LOGO OF THE BUSINESS
2.3 NATURE OF THE BUSINESS
2.4 LOCATION OF THE BUSINESS
2.5 BUSINESS VISION
2.6 BUSINESS MISSION

3.0 ADMINISTRATION PLAN 7 - 13

3.1 OWNERS’ BACKGROUND
3.2 ORGANIZATIONAL CHART
3.3 MAN – POWERING PLAN
3.4 SCHEDULE OF TASK AND RESPONSIBILITY
3.5 SCHEDULE OF REMUNERATION
3.6 EMPLOYEE INCENTIVES
3.7 LIST OF CAFE EQUIPMENT AND SUPPLIES
3.8 ADMINISTRATIVE BUDGET

4.0 MARKETING PLAN 14 - 17

4.1 COMPETITION AND COMPETITIVE EDGES
4.2 TARGET MARKET
4.3 MARKETING STRATEGIES
4.3.1 PRODUCT
4.3.2 PRICE
4.3.3 PLACE

1
 4.3.4 PROMOTION
4.4 MARKETING BUDGET

5.0 OPERATIONAL PLAN 18 - 22

5.1 OPERATION PROCESS
5.2 OPERATION FLOOR PLAN
5.3 LIST OF RAW MATERIALS
5.4 LIST OF PACKAGING TOOLS
5.5 LIST OF MACHINE AND EQUIPMENT
5.6 OPERATION BUDGET

6.0 FINANCIAL PLAN 22

6.1 EXPECTED REVENUE

7.0 SWOT ANALYSIS 23

8.0 CREDITWORTHINESS ANALYSIS 23 - 25

8.1 CHARACTER
8.2 CAPITAL
8.3 CONDITION
8.4 CAPACITY
8.5 COLLATERAL
8.6 JUSTIFICATION OF LOAN

9.0 CONCLUSION 26

2
1.0 INTRODUCTION

Uwu Smoothie Cafe is a beverage cafe located in Pandan Indah, Kuala Lumpur, that produces
and serves high-quality pure fresh fruit drinks consisting ready-made menu of smoothies and
juices while also accepting customization of orders according to customer’s preferences. We
only provide freshly produced smoothies and juices to our customers at our cafe because we
want to ensure that the freshness and quality of the products are consistent. A broad selection
of smoothies and juices are available, including our best-selling beverages, such as Blueberry
Mint Juice and Coconut Kiwi Smoothie, which are both popular among customers.

In order to benefit from the strategic location, we set up some spaces in our existing restaurant
that have been operated for 20 years for Uwu Smoothie Cafe. The restaurant located at a
strategic area that is close to offices as well as educational institutions such as schools and
universities that are open throughout the weekdays. Because of the strategic location, we
are able to reach a large number of customers in a short period of time. We also have a dine-
in space at our cafe, which allows customers to have their own space while resting and
enjoying the cheerful and endearing atmosphere of our cafe. We are striving to make sure that
our customers are satisfied with the services they receive and that they are comfortable in the
good environment created by our personnel. As a sit-down cafe type, our target market of the
younger generation, which mainly are students of high schools and universities can do their
assignments and hang out there with their friends while enjoying our various types of healthy
smoothies and juices.

To ask for a loan, credit analysis became vital as it is the process of analyzing a person's
capacity to fulfil financial commitments. In other terms, it is a method that identifies the
creditworthiness of a loan applicant. It is important for the bank as they want to be assure that
the loan applicant are able to make a repayment of the loan without any default. Credit analysis
entails a wide range of financial analysis tools, such as ratio and trend analysis, predictions,
and a comprehensive examination of cash flows. Credit analysis also looks at collateral and
other forms of payment, as well as the owner’s credit history and managerial skills. Analysts
seek to forecast the likelihood of a borrower defaulting on its loans, as well as the amount of
losses in the case of default. In general, bankers utilized information on numerous borrower
attributes such as character, capital, capacity, conditions, and collateral to determine whether
they need to provide the loan or not.

3
2.0 BUSINESS DESCRIPTION

2.1 BUSINESS BACKGROUND

Name of the Business Uwu Smoothie Cafe

Business Address No. 6G, Jalan Perubatan 4, Pandan Indah,

55100 Kuala Lumpur.

Email Address [email protected]

Telephone Number 03-7162534 / 017-1029385

Form of Business Partnership

Main Activities • Serve freshly made smoothies and juices to

keep the freshness and satisfied the
customers’ experience.
• Provide dine-in space for the customers.

• Provide customization orders according to the

customers’ preferences.

Date of Registration 2nd December 2020

Date of Commencement 9th December 2020

Name of bank • RHB Bank Berhad

• Malayan Banking Berhad

Bank Account • 7513013001193564 (RHB)

• 1515952995210 (Maybank)

Company Registration Number 20201209001 (968260 - U)

4
 2.2 NAME AND LOGO OF THE BUSINESS

In choosing the name of the business “Uwu Smoothie Cafe”, the appellation was motivated
mostly by the popularity of the word used among younger generations. “Uwu” is frequently
used to convey cuteness over a wide range of topics in everyday life. The cafe's cheerful and
endearing theme is a wonderful match for the trendy term used by the younger generation.
The usage of the trendy term in combination with the theme is intended to entice consumers,
particularly younger generations. Uwu Smoothie Cafe logo was created with the main focus
to keep it simple and neat. Fully adapted the concept of minimalism and negative space, the
shape used is a round shape which associated with movement and transformation while also
symbolizes unity. When it comes to being fond of cute things, everyone unites over it, thus
Uwu Smoothie Cafe with its cheerful and endearing theme decides to choose the shape.

As for the colours of the logo, pink and dark brown are chosen as its theme colours. Taking
the adage "less is more" to heart, we chose to use only two colours. Pink represents affection
and nurturing, which means that the smoothies we serve to our customers are prepared with
affection. Pink's brilliant hue also makes it easier to notify the logo. In contrast to the bright
colour of pink, we chose dark brown as the font's base colour to be an eye-catching
complement that makes it easier to read due to its contrast with the bright colour of pink. The
creation of the simple logo is not only easier to absorb and understand but it is also easier to
recall when people see it again. It is easier to associates with positive experiences as it triggers
crucial memory centres in the brain rather than confusing the brain with unclear or overloading
messages.

To draw attention to the business brand, Uwu Smoothie Cafe created the tagline "We'll Leave
The Uwu On For You!" The tagline was created with the intention of being remembered and
identified in some way with the goal of lasting a positive impression of the brand to the public.

5
 2.3 NATURE OF THE BUSINESS

The nature of the business is service-oriented where it focuses on the preparation and sale of
fruit smoothies and juices that are low in calories and offer the option of having added sugar
or naturally occurring sugar from the fruit itself. The smoothies are prepared entirely from high-
quality, pure fruit that is beneficial to the health. The cafe features a dine-in area that has been
beautifully furnished to allow customers to sit and enjoy their order while also having adequate
space for them to snap interesting pictures of their experience with our business. Furthermore,
the cafe also offers customers to customise their order according to their preferences. Online
orders and delivery are becoming increasingly vital for businesses to grow and attract new
clients hence, because of this, we worked with online platforms like FoodPanda, ShopeeFood
and GrabFood.

2.4 LOCATION OF THE BUSINESS

Uwu Smoothie Cafe is located at No. 6G, Jalan Perubatan 4, Pandan Indah, 55100 Kuala
Lumpur. This location can be considered as a strategic location as it is near to offices and
educational buildings such as schools and universities. Due of its proximity to businesses that
operate throughout the workday, Uwu Smoothie Cafe has an excellent potential to reach a
large number of individuals in a short amount of time. The customers also do not have to travel
in long distance especially when their time is limited.

2.5 BUSINESS VISION

The vision of Uwu Smoothie Cafe is to give delectable goodness for everyone. Rather than
serving standard beverages, we intended to offer high-quality smoothies and juices at an
affordable price to satisfy all palates, particularly those of smoothie enthusiasts. To achieve
our objective of increasing profit, we strive to keep our products affordable to all classes of
Malaysian citizens.

2.6 BUSINESS MISSION

Uwu Smoothie Cafe's mission is to provide the highest quality beverages fresh daily. We focus
on serving high quality and distinctive drinks to make every sip more enjoyable. Our cafe also
focuses on maintaining relationships with customers by ensuring each customer is satisfied
with the efficiency, speed, and customer friendliness of our personnel.

6
3.0 ADMINISTRATION PLAN

3.1 OWNERS’ BACKGROUND

1) General Manager

Name Amirah Syahira binti Md Shafie

Identification
760701-11-0688
Card Number
50, Jalan Mewah 5, Taman Mewah, 81200
Address
Johor Bahru, Johor.
Date of Birth 1st July 1976
Educational • BBA Hons International Business
Background • Diploma in Banking Studies
Phone Number 017-3490169
E-Mail [email protected]

2) Administrative Manager

Name Aisya Nadirah binti Arif Mustanza

Identification
770317-14-7220
Card Number
3, Jalan Setapak 10, Taman Desa Setapak
Address
53300 Kuala Lumpur.
Date of Birth 17th March 1977
• BBA Hons Human Resource
Educational
Management
Background
• Diploma in Banking Studies
Phone Number 013-2667134
E-Mail [email protected]

7
3) Marketing Manager

Name Nurhazrin Syazwani binti Halim

IC Number 770603-10-4636
9, Jalan Yusuf 5/11, Taman Sentosa,
Address
41200 Klang, Selangor
Date of Birth 3rd June 1977
Educational • BBA Hons Marketing
Background • Diploma in Banking Studies
Phone Number 019-7321157
E-Mail [email protected]

4) Operation Manager

Name Nurnajwa binti Khairuddin

IC Number 761028-01-0034
23-4, Jalan Ria 1, Taman Scientex, 81700
Address
Pasir Gudang, Johor.
Date of Birth 28th October 1976
Educational • BBA Hons Operations Management
Background • Diploma in Banking Studies
Phone Number 012-3664180
E-Mail [email protected]

5) Financial Manager

Name Nurul Saffiya Izzie binti Ismail

IC Number 780519-01-3490
40, Jalan Jasa, Taman Jasa, Pt Haji
Address Hamid, Parit Raja, 86400 Batu Pahat,
Johor.
Date of Birth 19th May 1978
Educational • Bachelor of Accountancy (Hons)
Background • Diploma in Banking Studies
Phone Number 017-2106019
E-Mail [email protected]

8
3.2 ORGANIZATIONAL CHART

3.3 MAN – POWERING PLAN

POSITION NUMBER OF STAFF

General Manager 1

Administrative Manager 1

Operation Manager 1

Marketing Manager 1

Financial Manager 1

Café Assistant 2

TOTAL 7

9
 3.4 SCHEDULE OF TASK AND RESPONSIBILITY

NO. POSITION MAIN TASKS/ RESPONSIBILITIES

1. General Manager • Achieves business goals by taking responsibility of
multiple and new demands and discovering any chances
to add value to work achievements.
• Identifying and resolving consumer and employee issues.
• Maintains customer satisfaction by monitoring, assessing,
and auditing food, beverage, and service offerings, as well
as initiating modifications.
• Responsible for all aspects of the company's operations
and ensure the efficient management.
• Plans business policy and standard of procedure in order
to attain the organization's goal.
2. Administrative • Evaluate employee performance and provide training and
Manager advice to achieve optimal efficiency.
• Ensure the seamless and appropriate flow of information
throughout the organization.
• Setting budgets, monitoring expenditures, and processing
pay cheques and other costs in collaboration with the
accounting and management teams.
3. Marketing • In charge of branding, promoting, and marketing
Manager campaigns.
• Extensive examination of all sales factors and design the
marketing plan in accordance with the business vision and
objectives.
• Oversees existing offers and develops new product ideas.
4. Operation • Responsible for the operation and monitoring the
Manager preparation to ensure that quality of the products
requirements is met.
• Ensure that the staff follows the cleanliness, food safety,
and hygiene requirements.
• Seek methods of improving the quality of customer
service.

10
 5. Financial • Investigate cost-cutting and cost-maintenance strategies
Manager by evaluating financial records and company operations.
• Conduct financial statements and forecast the sales
revenue of the business.
• Control money cash flow and handle the budget planning
process.
6. Cafe Assistant • Prepare and serve the smoothies as according to order
taken.
• Communicating with consumers and determining their
wants and requirements.
• Taking part in stock takes and aiding with the storage of
new stock
• Operating cash registers, taking payments, and producing
sales invoices.

3.5 SCHEDULE OF REMUNERATION

MONTHLY
EPF 12% SOCSO 2% TOTAL
POSITION SALARY
(RM) (RM) (RM)
(RM)

General Manager 3,100.00 372.00 62.00 3,534.00

Administrative Manager 2,700.00 324.00 54.00 3,078.00

Operation Manager 2,700.00 324.00 54.00 3,078.00

Marketing Manager 2,700.00 324.00 54.00 3,078.00

Financial Manager 2,700.00 324.00 54.00 3,078.00

Cafe Assistant 1,600.00 192.00 32.00 1,824.00

TOTAL 15,500.00 1,860.00 310.00 17,670.00

11
 3.6 EMPLOYEE INCENTIVES

Uwu Smoothie has given incentives to the employees in order for them to perform more
efficiently and impressively in accordance with our objectives. The following is the incentives
that we have agreed to provide to the employees:

1. Annual leave
Paid time off will be given to employees who have worked more than 1 year.

2. Bonus
Bonus is given to the employees if the cafe achieves target sales. The employees will
receive a bonus at the end of the year in one month's salary.

3. Medical leave
Medical leave will be provided to employees who have received a medical certificate
from a government or private clinic. They must be verified as unwell enough to
require sick leave.

4. EPF
Uwu Smoothie will contribute 12% of employee’s monthly salary to EPF savings.

5. SOCSO
2% of the employee’s salary will be deducted for social safety policy (SOSCO) from all
employees in the event if the employees are involved in an accident while performing
the duties.

3.7 LIST OF CAFE EQUIPMENT AND SUPPLIES

PRICE PER UNIT TOTAL AMOUNT

ITEM QUANTITY
(RM) (RM)

Air conditioner (FA) 2 3,200.00 6,400.00

Ceiling Fan 3 150.00 450.00

Ceiling Light 15 30.00 450.00

CCTV 3 130.00 390.00

12
Fingerprint Time Machine 1 120.00 120.00

POS System Machine 1 1,500.00 1,500.00

Wi-Fi 1 300.00 300.00

Speaker 1 250.00 250.00

Wireless Payment Terminal 1 1,000.00 1,000.00

Dustbin 3 10.00 30.00

Stationaries 1 80.00 80.00

Fire extinguisher 2 100.00 200.00

TOTAL 11,170.00

3.8 ADMINISTRATIVE BUDGET

ADMINISTRATION EXPENDITURES RM RM

Fixed Asset:

Building 700,000.00

Air Conditioner 6,400.00

Total 706,400.00

Monthly Expenditures:

Salaries 19,494.00 x 12 233,928.00

Utilities 2,200.00 x 12 26,400.00

Total 260,328.00

Pre-Operations and Other Expenditure

Cafe Equipment and Supplies 4,770.00

Business Registration and Licenses 1,000.00

Typhoid Injection 560.00

Halal Certificate 150.00

Total 6,480.00

TOTAL 973,208.00

13
4.0 MARKETING PLAN

4.1 COMPETITION AND COMPETITIVE EDGES

NAME OF
NO. STRENGTHS WEAKNESSES
COMPETITORS

1. Boost Juice • Popularity in foreign • The drinks are too sweet

markets
• Replacing valuable staff
• Strong brand is costly
recognition

2. SHAKE Smoothie Bar

• Lack of marketing
• Various types of drink strategies

• Using only the freshest • The price of the products

ingredients is expensive

4.2 TARGET MARKET

The target market for Uwu Smoothie Cafe is primarily the younger generation, but it is not
restricted to them. Individuals who are concerned with their health and smoothie enthusiasts
also become our cafe's target customers. Due to our cafe's close proximity to offices and
educational institutions, we expect that those individuals from the organizations will eventually
visit our cafe, as it is only a short walk away. While customers can save time, energy, and
money on commuting, they can also invest in their health by purchasing one of our affordable
beverages. Our reasonably priced beverages are likewise designed to appeal to people of all
socio-economic backgrounds. Because the costs of our beverages are not ridiculously
expensive, first-time consumers of smoothies do not have to be concerned about trying out
the drinks that are too expensive as they can purchase it from our cafe. Uwu Smoothie Cafe
also accepted customization of orders according to the customers’ preferences hence they
can enjoy creating their own recipes of smoothies and be experimental with it.

14
 4.3 MARKETING STRATEGIES

4.3.1 Product/Service

Uwu Smoothie Cafe serves the most flavourful and nutritious smoothies made from various
fresh fruits such as strawberry, mango, banana, blueberry, kiwi, coconut, and dragon fruit.
Yogurt and milk can also be added to the smoothies as additional ingredients to make them
more sweet and tasty depending on the customers' preference. Besides that, the smoothies
will look more tempting when putting the mint leaf or slices of fruit on the top of the smoothies
to attract customers’ attention.

Online food delivery service is one of the services provided by this cafe to expand the
smoothies' business and reach a wide range of customer locations. GrabFood, ShopeeFood
and FoodPanda are among the food delivery platforms that the customers can use to order
the smoothies. Furthermore, the smoothies come with secure packaging and are refreshing
to the customers and meet their expectations regarding our smoothie cafe.

4.3.2 Price

Uwu Smoothie Cafe offers a reasonable price of smoothie to the customers. The price is varied
according to the flavour of the drinks. We set the price based on the cost of production and
our target audience. As the business is located in the area of Pandan Indah, Kuala Lumpur,
we believe that our target customer would be able to pay for the smoothies. We will give
discount prices during our grand opening to attract potential customers and to make sure that
the cafe is known by people in Kuala Lumpur.

The price offered to the customers is based on the table below:

15
 FLAVOURS PRICE (RM)

Strawberry 10.00

Blueberry 10.00

Kiwi 9.00

Mango 9.00

Banana 8.00

Coconut 8.00

Dragon fruit 8.00

4.3.3 Place

Uwu Smoothie Cafe is located at No. 6G, Jalan Perubatan 4, Pandan Indah, 55100 Kuala
Lumpur. Our cafe has a great opportunity to reach a large number of people fast because it is
close to offices and educational facilities like schools and universities. Customers will also
save their time by not having to travel long distances, which is important when time is limited.
Buying from Uwu Smoothie Cafe will also save them money on transportation and energy.
Because there are many restaurants nearby, Uwu Smoothie Cafe's beverages can be
complimentary drinks to complete their meal.

To enhance sales revenue, increase brand recognition, and expand the advertising audience,
Uwu Smoothie Cafe has entered into a joint venture with FoodPanda, ShopeeFood and
GrabFood. This will allow our cafe to reach a wider range of customers. Due to the fact that
the parties involved will work together to achieve the venture's success, it is considered that
forming a joint venture with other companies will provide more benefits than drawbacks.
Competition between competitors is less likely to increase as a result of the joint venture
agreement, especially if the competitors do not become associated with the same companies
who are working with Uwu Smoothie Cafe as part of the joint venture agreement.

4.3.4 Promotion

In terms of promotion, Uwu Smoothie Cafe uses various strategies to present our products to
the audience. The purpose of this promotion is to inform customer about the smoothie and
build customer loyalty to our brands. As a new venture, it is vital for Uwu Smoothie Cafe to

16
implement the most effective strategies in order to be well-known in the market. To ensure our
product is acknowledged by many people, we have come out with a few strategies such as
through banners, social media and sales promotions. These promotion strategies can help the
business to keep up in the long-term.

Banner is one of the most affordable promotion strategies to promote our new cafe since it
only costs around RM20. The banner will be hung outside of the cafe to notify people about
our products. It must be creative and eye-catching in order to attract people to come to the
cafe. As for social media, it is considered as an influential platform to advertise our products
because it has a wide range of network. We launch the advertising ads in numerous
applications including Facebook, Instagram and TikTok. Apart from that, we also conduct a
monthly sales promotion by offering our customer a special discount or free delivery charges.
These promotions are carried out to encourage people to repeat purchases in the future.

4.4 MARKETING BUDGET

Marketing Expenditures RM RM

Fixed Asset:

Automatic Order Machine 2,500.00

Total 2,500.00

Other Expenditures:
Flyers (1000 pcs @ RM0.80 per pcs) 800.00
Business card (5boxes of 500 pcs @RM25/box) 125.00
Signboard 985.00
Banner (2ft x 4ft) 20.00

License for signboard (RM1,000/year) 1,000.00

License for banner (RM70.00/month) 840.00

Advertising fee (RM200.00/month) 2,400.00
Total 6,170.00

Pre-operations:

Grand Opening 5,000.00

Total 5,000.00

TOTAL 13,670.00

17
5.0 OPERATIONAL PLAN

5.1 OPERATION PROCESS

The flowchart below is the process of making a cup of smoothie from a to z.

Firstly, we need to take out the fresh fruits that

we have packed from the freezer.

Once we take out the fruits, we will cut them into

small pieces in order to fit in the blender.

Next, put the fruits in a blender together with other

additional ingredients such as ice cubes, milk,
yogurt and juice flavour.

Blend the ingredients from slow speed to high

speed to ensure everything is mixed well.

Lastly, pour the smoothie into the cup and add

some garnishing like mint leaf to make the
smoothie look presentable and appetizing.

18
5.2 OPERATION FLOOR PLAN

The figure below is the floor plan of Uwu Smoothie Cafe after finalizing the design of
space for renovation and the arrangement of new furniture and equipment.

19
 5.3 LIST OF RAW MATERIALS

ITEM QUANTITY PRICE PER UNIT TOTAL COST

(RM) WEEKLY (RM)

Strawberry 4 kg 29.00 116.00

Mango 7 kg 9.00 63.00

Banana 7 kg 7.00 49.00

Blueberry 4 kg 23.90 95.60

Kiwi 4 kg 20.00 80.00

Coconut 6 kg 7.50 45.00

Dragon fruit 5 kg 11.00 55.00

Juice flavor 8 bottles 7.90 63.20

Yogurt 2 cartons 30.00 60.00

Milk 10 liters 5.20 52.00

Mint leaf 7 packs 2.30 16.10

TOTAL 694.90

5.4 LIST OF PACKAGING TOOLS

PRICE PER UNIT TOTAL COST

ITEM QUANTITY
(RM) WEEKLY (RM)
Plastic cup 1000 pcs 0.25 250.00

Straw 2000 pcs 0.10 100.00

Plastic bag 8 kg 3.20 25.60

2 paper cup holder tray 350 pcs 0.22 77.00

4 paper cup holder tray 450 pcs 0.45 202.50

Sticker of business logo 1000 pcs 0.10 100.00

TOTAL 755.10

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 5.5 LIST OF MACHINE AND EQUIPMENT

ITEM PRICE PER UNIT TOTAL COST

QUANTITY
(RM) (RM)

Glass cup 150 pcs 5.50 825.00

Coaster 150 pcs 2.50 375.00

Knife 5 set 23.50 117.50

Fruit peeler 7 pcs 0.96 6.72

Chopping board 5 pcs 4.90 24.50

Measuring cups 3 set 5.10 15.30

Weighing scale 3 pcs 18.00 54.00

Blender 3 pcs 49.90 149.70

Fruit Refrigerator (FA) 2 units 4,500.00 9,000.00

Ice maker (FA) 1 unit 1,250.00 1,250.00

TOTAL 11,817.72

5.6 OPERATION BUDGET

OPERATION EXPENDITURES RM RM

Fixed Asset:

Furniture 11,000.00

Refrigerator 9,000.00

Ice maker 1,250.00

Total 21,250.00

Monthly Expenditures:

Raw materials 694.90 x 52 36,134.80

Packaging tools 755.10 x 52 39,265.20

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 Total 75,400.00

Other Expenditures:

Smoothie Equipment 1,567.72

Total 1,567.72

TOTAL 98,217.72

6.0 FINANCIAL PLAN

6.1 EXPECTED REVENUE

YEAR 2021 2022 2023 2024 2025

REVENUE 1,200,000 1,300,000 1,400,000 1,500,000 1,600,000

EXPENSES

Administrative
973,208.00 975,208.00 977,208.00 979,208.00 981,208.00
budget

Marketing 13,670.00 16,670.00 19,670.00 22,670.00 25,670.00

budget

Operation
98,217.72 101,217.72 104,217.72 107,217.72 110,217.72
budget

TOTAL
1,085,095.72 1,093,095.72 1,101,095.72 1,109,095.72 1,117,095.72
EXPENSES

Earnings
114,904.28 206,904.28 298,904.28 390,904.28 482,904.28
Before Interest
and Taxes

Taxes - - - - -

NET PROFIT 114,904.28 206,904.28 298,904.28 390,904.28 482,904.28

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7.0 SWOT ANALYSIS

STRENGTHS WEAKNESSES

• Focus on the freshness, healthiness and • The cafe only serves one - size cup of
quality of the beverages. smoothies.
• Located in a strategic area that is close to • Strong competition and has lower brand
offices and educational institutions that recognition.
operate on weekday.

OPPORTUNITIES THREATS

• Launch loyalty card application for • Unstable raw material cost.

smoothie’s cafe. • The demand of the smoothies reduces in
• Attract new customers with a unique the cold weather.
combo and special offers during the
weekend.

8.0 CREDITWORTHINESS ANALYSIS REPORT (5Cs)

8.1 CHARACTER
Bankers must be certain whether the Smoothie Cafe business is sincere and trustworthy or
not. They must assure that their client has the necessary background, education, industry
information, and experience to run the business successfully. A specific level of management
and ownership expertise may be required by financial institutions. They will also inquire about
the business credentials and if the borrower has a criminal background. History is the truest
predictor of the future, the borrower that is going to request the loan will have their credit
checked. The character of Uwu Smoothie Cafe’s owners can be evaluated by their educational
background and business experience in the field. As for the fact, the borrower has owned the
restaurants for the past 20 years and all the businesses owned by him are successful. It shows
that the borrower has much experience in conducting the business and is able to maintain the
income of the company. The business experience assures us as a banker that the borrower
has no issue regarding repaying the loan as the businesses conducted by the owner are well
grown. By this information, it can be assured that the borrower has a good quality of character.

23
 8.2 CAPITAL

Capital is a required element in the market, especially for the new business to produce goods
and services. Without capital, a business cannot be growing its productivity to expand its
products. The lender will evaluate the owners’ investments into this smoothies business,
including the assets such as equipment and furniture. Therefore, the lender can see the
owners’ responsibility and how serious they are to repay the loan within a given time. From
the financial strategy, the amount of assets must exceed the liabilities and then it is considered
positive equity. The owners show excellent criteria in running the restaurants smoothly and
the lender is more likely to give those loans easily since they are successful in the business
history. The lender also needs to measure the capital because it is important to assess the
risk, the smoothie’s business strength and the owners’ commitment to loan repayment.
Referring to the successful business by the owners, Uwu Smoothie Cafe will be able to repay
the loan.

8.3 CONDITION
Business conditions are typically connected to the business’s place and the market sector in
which it conducts. The cafe’s condition is regarded as great because Uwu Smoothie Cafe will
be the only cafe to open in downtown, resulting in a high market. The loan is acceptable for
this cafe because its net profit covers the obligation. In this scenario, the Smoothie Cafe can
also define the loan size to assist the banker in analysing Uwu Smoothie Cafe’s loan
application. The owners can convince the banker by providing statistics on latest revenue and
latest liabilities. The banker will then evaluate the cafe’s ability to pay back the loan. To prevent
the business from going bankrupt, the banker should check Uwu Smoothie Cafe’s credit
history. To enhance the business, they will develop a strategic proposal to decide whether the
funds will be used for company improvements, purchasing new construction equipment,
upgrading existing facilities or hiring new employees. This will supply financial security to Uwu
Smoothie Cafe while also supporting in the development of total operational profits. As a
result, the banker will be aware of the current state of the business along with whether it is
continuing, improving or worsening.

8.4 CAPACITY
Capacity refers to the ability of borrower in repaying the loan. It is crucial when applying for a
loan since the lender wants to know if the borrower has enough cash flow to comfortably
sustain its business expenses and debts while ensuring that there will be no default payments
over the loan term. Capacity is determined by comparing recurrent debts to income and
calculating the borrower's debt-to-income (DTI) ratio. A lower DTI ratio increases

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the chance of qualifying for a loan. In accordance with the loan application submitted by Uwu
Smoothie Cafe, they have the ability to repay the loan since they have substantial experience
in running a business and in maintaining the business for an extended length of time, as
evidenced by their 20-year history of operating restaurants. Uwu Smoothie Cafe is likely to
build a sizable customer base and profit from it over time. The cafe's predicted revenue in five
years indicates that they will be able to repay the debt in a timely manner.

8.5 COLLATERAL

Collateral refers to an asset provided by a borrower to a lender as security for a loan. It gives
the bank the reassurance to get back the unpaid money and minimizes the risk. If the borrower
is unable to repay the loan according to the agreed conditions, the lender has the right to seize
the asset and sell it to cover its losses. The function of collateral is to allow borrowers to secure
more credit at better rates and offer protection to lenders from a significant loss. When you
apply for a business loan, the bank will evaluate the secondary source of payment either the
business’s assets or the personal assets of the guarantor. Based on the loan applied by Uwu
Smoothie Cafe, the assets that the business can use as collateral is the furniture and the
equipment such as refrigerators and air conditioners. If the owners fail to pay the loan
amounting to RM200,000 within the specified period, the collateral will act as a backup for the
cafe. Since the cafe has enough assets, the owners will be able to pay off their debts.

8.6 JUSTIFICATION OF LOAN

Decision : Loan Approve

Justification : According to the creditworthiness analysis performed on Uwu Smoothie Cafe,

the borrower is capable of repaying the loan in full within the loan term of two years. Based
on the cafe's revenue predictions, their revenues will be sufficient to cover all of their expenses
and debts. It is determined that the borrower has sufficient assets to be used as collateral if it
becomes necessary for them if there is a default on the loan throughout its duration, hence,
the loan is granted.

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9.0 CONCLUSION

In a nutshell, we can conclude that running a business is not as simple as it may seem. It
requires a lot of energy, time and money to ensure everything goes according to the plan.
Therefore, every entrepreneur must have a thorough plan before starting a business because
it is an essential tool to help them expand their products or services and to achieve the
objectives of the business. Uwu Smoothie Cafe is a business that focuses on selling high-
quality smoothies and also juices at a reasonable price by using a variety of fresh and frozen
fruits. Our smoothie business can also customise orders based on the customers’ preferences
which are able to attract their attention to buy from us. This makes Uwu Smoothie Cafe unique
as the menu is different from another smoothie cafe. Since the location for Uwu Smoothie
Cafe is close to offices and educational facilities such as schools and universities, it has a
great chance to gain more customers and profits.

Since our cafe has operated for almost 20 years, all five owners have agreed to do a
renovation by adding some space in the cafe to increase customers’ comfort and capacity. As
an old venture, Uwu Smoothie Cafe needs to make some changes in order to create a new
and fresh environment to gain consumers’ recognition. Therefore, we have decided to apply
for a business loan amounting to RM200,000 to renovate the space as well as to buy new
furniture and equipment. Since our business revenue is expected to increase continuously for
the upcoming five years, we are certain that we can repay the loan during the specified period.
Apart from that, we have considered all aspects of 5Cs before applying for a business loan to
ensure we can pay off the debts. We hope that our business will continue to strive in the future
and be able to operate on a larger scale.

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