Financial Advisor: 5 Business Lessons Everyone Can Learn from 'Lending Tycoon' Bobby Jordan, Founder and CEO of Asialink Finance Group

Robert "Bobby" Jordan's journey from the humble beginnings of Navotas fish port to the commanding heights of the financial sector in the Philippines is a narrative that embodies the spirit of determination and entrepreneurship.

The story of Jordan, the mastermind behind Asialink Finance, exemplifies the tale of a leader whose mission is to empower the underserved and provide financial solutions to those in need.

Growing up in the squatter area of Navotas fish port, Jordan developed a deep understanding of the challenges faced by people from similar backgrounds. Driven by his wish to improve the lives of those around him, he held onto a strong ambition to work in the government, aiming to create a voice for and support those struggling with financial and social difficulties. This motivation led him to study and graduate from the University of the Philippines with a degree in economics.

After finishing his studies, Jordan started working at the Department of Trade and Industry (DTI), but it was when he worked at the United Coconut Planters Bank (UCPB) that he realized something important. He noticed that the bank regularly turned down requests for small loans in order to focus on giving out bigger loans to big companies. This made Jordan see that there was a big need in the financial world that wasn't being met.

Motivated to help people get the money they needed, Bobby decided to start his own business to change how lending worked in the Philippines. He spent six months carefully studying the industry before starting Asialink Finance in 1997 when he was 32 years old. To get it going, he borrowed P3 million, mostly from his father-in-law, and hired his trusted co-workers from his bank.

Today, after 26 years, Asialink Finance has become one of the biggest companies in the country for lending money, with assets worth over P14 billion. Jordan's unparalleled foresight and strong commitment to helping people who need small loans set the stage for Asialink Finance’s exponential growth.

The success of Asialink Finance has also enabled Jordan to establish two more lending companies, Global Dominion and South Asia Finance (SAFC), which are both market leaders. Under his strategic guidance, the collective revenues and assets of these three entities coalesced to position the Asialink group as an unparalleled industry leader, setting unprecedented benchmarks for sustainable growth and financial stability.

Jordan's journey from humble beginnings to becoming a beacon of financial empowerment stands as a testament to the transformative impact of determination and visionary leadership.

Through his commitment to facilitating financial inclusivity, Jordan has not only reshaped the dynamics of the financial sector but has also left an enduring legacy of empowerment and transformation, serving as an inspiration for aspiring entrepreneurs and individuals striving to create a lasting impact within their communities.

What were the initial challenges that Jordan faced, and how did he navigate these obstacles to steer the company toward success? How did Jordan lead and guide the Asialink Finance to grow and become a leading player in the financing industry?

Here are the five business lessons everyone can learn from Robert "Bobby" Jordan, founder and CEO of Asialink Finance:

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1| Know how to identify market gaps

Identifying white spaces in the market helps to uncover unmet consumer needs or underserved segments, presenting opportunities for innovation and new product development.

It allows businesses to differentiate themselves from competitors by offering unique solutions or services that lead to increased customer satisfaction and loyalty, as businesses can tailor their offerings to precisely meet customer demands.

Jordan identified niche opportunities by observing the significant number of small companies applying for loans that were not being adequately addressed by existing financial institution. He noticed that the institution had limitations in handling loan requests of smaller sizes, due to operational constraints and income targets.

Recognizing this unmet need, Jordan saw an opportunity to establish a financing company that could specifically cater to the loan requirements of small and medium-sized enterprises (SMEs) and also provide consumer loans, effectively addressing the gaps in the market for accessible and tailored financial solutions for these underserved businesses and individuals.

"I started my career at the Department of Trade & Industry," he says. "I was a researcher because my background was economics. I graduated from UP, so for a few years I worked sa DTI as an analyst. Afterwards, which I resigned kasi I was taking my MBA at that time and then I joined several banks until I eventually went to UCPB as a loan officer."

"I was in the small and medium enterprise loan department, so we were lending to small companies, supposedly small and medium sized companies no. Napansin ko when I was in UCPB, ang daming applications from small companies, but the problem was I couldn't serve them because I also have a quota, so I also have income targets. So the ones that I was able to service were around P20 million, P30 million mga ganun, and even P100 million na loan sizes.

"But the ones that are small, even though we were in the small and medium category, hindi namin ma-handle yung P5 million, the P2 million, the P10 million. We didn't have time for that. There were a lot of them, mga small and medium enterprises at UCPB, but there were only about 55 of us all over the country.

"Some of my colleagues were able to service some of the small loans, but for me, I was based here in Metro Manila. The smallest I was able to process and market was about P10 million in loan size. So eventually, while I was working, I got tired kasi nakita ko parang there were so many officers above me eh.

"I have my Department Head, and then I have my Division Head, and then the President, and then the CEO. So the ways things I wanted to do syempre hindi naman pwede kasi very structured. Eto lang yung pwede kong gawin.

"And then I had a client who was in the financing business. I learned from them na yung market nila was consumer loans, yung mga appliances mga ganun. Sabi ko this could be a good starting point for a financing business. Doon ko naisip na maybe we could put up a financing company that would cater to consumer loans and also to SMEs, yung Small & Medium enterprise businesses. So that’s where I started.

2| Know how to overcome early business challenges and build a strong foundation

Early challenges often test an entrepreneur's resilience and determination, shaping their ability to navigate complex situations and adapt to changing market dynamics. By surmounting these initial hurdles, entrepreneurs can establish a resilient framework that fosters growth and stability.

Jordan overcame challenges in the business through perseverance and strategic adaptation. While encountering risks associated with his initial product, he identified the need for diversification and risk management. This realization led him to explore other product lines, ultimately venturing into more reliable and profitable market segments.

Jordan's foresight in addressing operational inefficiencies and enhancing the credit and collection processes demonstrated his commitment to strengthening the business infrastructure.

By prioritizing the development of an efficient workforce and optimizing internal processes, Jordan established a robust operational framework, positioning the company for sustainable growth and success in the long run.

"Sa umpisa, it was really hard kasi lahat ng sistema and processes you have to define, and then ikaw mismo lahat gagawa nun pati pag ayos ng opisina," he says. "Ako din nagkabit nung aircon eh. Maliit lang yung budget namin. Ako rin naglilinis sa umaga kasi maliit lang yung office namin, siguro mga 10 square meters. Maliit lang sya, kasya lang dalawang table.

"Nung una kasi yung product namin was appliance loan. May tie-up kami with companies or unions then we supply their members with appliance. Kakausapin namin yung HR ng company, kunwari mag pay-off deduction, pagkatapos ibibigay sa amin yung payment. Ok naman pero maraming risks.

"Kasi pag nag-resign yung customer, baka hindi enough mabayaran yung utang nya ng last pay nya eh like marami syang claims din, meron syang babayaran sa company, mga ganun, so maraming risk.

"Minsan ang employees union dun nila binibigay yung pera pero ang risk naman, yung mga officers minsan loko-loko, kinupit nya yung pera ng union, so wala ng pambayad sa ‘yo.

"Puede rin yung company mismo nagsara so syempre wala ng trabaho yung mga employees, wala na syang pambayad samin. Maraming issues.

"Kaya when we started Asialink in 1997, naging profitable lang sya after four years. The first three years were rough; parang we were just barely breakeven eh. Ini-ikot lang namin yung capital and then we have some borrowings. Medyo mahal yung borrowings namin; we were borrowing at 24 percent per annum.

"It was only in the fourth year na medyo nahuhuli na namin yung business model eh. It was the start of the fourth year that we started making money. The first three years mahirap eh kasi you have interest income, but the problem is meron kang past due. That’s the one that you really have to figure out kung pano mo ili-limit yung past due mo. Kasi madaling magpautang, mahirap mangolekta eh. So how do you limit your losses from your past dues?

"Sabi ko I’m going to other product lines. It was just necessary for us to start something kasi ang importante sa business is yung foundation eh, yung mga tao. Nung medyo may mga tao na kami, we went to other product lines.

"On the fourth year, may product kami na doctor’s loan and car financing. We noticed that when we lend to doctors, they really pay us. Hindi naman lahat ng doctor may ready cash. Meron kasing mga doctor na they need to buy new equipment.

"Marami kami mga dentist din and then yung mga machine na pang derma yung mga for their business. Sa doctors, maganda naman yung returns kasi hindi naman ganun ka-competitive especially kung magaling ka na doctor.

"They would not borrow unless they see na talagang kikita, so we focused on doctor’s loans. Magaan yung collection. And then we went into SME loans with collateral and doon medyo nagstabilize yung past dues. Ibig sabihin we were able to control the past dues na.

"Yun ang signal na talagang pwede ka ng bumomba, kasi after four years you also have to fix your operations. Kailangan ilatag mo muna yung processeses, yung credit process, your collection infrastructure.

"Kailangan nandun na yung mga tao eh before you can really run the engine; the machine has to be there. Pag nandun na sya, dirediretso na. So ang gagawin mo na lang fine-tune na lang."

3| Know how to mitigate risks and make informed decisions

By actively managing and minimizing potential threats, businesses can protect their assets, reputation, and financial stability. Effective risk management allows companies to identify and prepare for potential challenges, thereby reducing the likelihood of disruptive events and their associated negative impacts.

Making informed decisions based on comprehensive research and analysis ensures that businesses can capitalize on opportunities while avoiding potential pitfalls. This approach enables companies to adapt to changing market conditions, make strategic investments, and remain competitive in their respective industries.

Jordan effectively mitigated risks and made sound decisions by implementing a comprehensive risk assessment process and conducting thorough due diligence on potential clients. He prioritized understanding the market dynamics, analyzing industry trends, and evaluating the economic landscape, enabling him to make informed decisions about business prospects.

Jordan's emphasis on assessing the credibility of borrowers through various means, such as scrutinizing financial records, conducting trade checks, and verifying credit history, helped him minimize the risk of defaults and non-payment.

By emphasizing transparency, accountability, and strong financial controls, Jordan ensured that the business maintained a healthy financial position and effectively managed its loan portfolio. Through these strategic measures, Jordan successfully navigated the challenges of lending to SMEs, thereby minimizing risks and fostering sustainable business growth.

"If you're in business, there are about a thousand factors that can affect your business, you know, as an entrepreneur. In our case, when we lend to a small business, we want to meet the entrepreneur. We want to know if he knows what he's doing.

"By looking into his eyes and hearing the words from him, you will know whether he knows his business or has the passion to really grow and succeed in the business, di ba? Other than that, there are other factors—the economy is one, and also the industry. You have to know whether it's a sunrise industry or a sunset industry. There are so many factors, and even then, you have to be very good in psychology din.

"How do you manage your people and your customer? You know, managing your customers involves a lot of psychology? Kasi wala pang credit score for businesses, and without a credit score for businesses, it’s really hard to lend to SMEs. Yung mga bangko, they lend to big corporations because big companies like ourselves have very good reports.

"We have our external auditors. We get very reputable external auditors to ensure that our figures are correct. Etong maliliit na businesses wala namang ganyan, so what we do is we come up with our own reports for them. We reconstruct their income, conduct interviews and validation. We look at their income statements, their revenues, or their sales, asking where they come from.

"We ask questions like, ‘Can you show us where you record these? Patingin nga nung logbook mo kung talagang ganun talaga yung benta mo?’ Of course, you can verify the expenses by getting the bills, yung mga utilities sa bahay nila, mga expenses ng mga anak.

"We come up with the estimated income, and for balance sheet naman, we just list down all the asset. Of course you validate the ownership Pwede naman you can just ask sa neighborhood kung bahay nya ba talaga yan or kung utang ba yan.

"Sa barangay normally makikilala yan. They have the records. Alam nila kung balasubas ka, ganun, and of course the sari-sari store beside diba ang dami nyang mabibigay na info sa ‘yo. Lasenggo ka ba? Or what?

We also do trade checks. We check yung customers and also yung suppliers before we come up with the assets and liabilities and then we get the net worth or the capital.

"Madali lang naman i-validate yung business eh kung tama. Ginagawa lang namin puntahan mo yung negosyo, picturan mo sya. Tapos bilangin mo yung inventory nya, o di kaya, ite-trade check mo sya, tatawagan mo yung mga customer nya o talagang totoo ba itong si client? May benta ba talaga sa ‘yo?

"Iche-check mo, or yung supplier ni client. Tatawagan namin o bumibili ba talagang materyales si client sa inyo? Magkano bang binibili nya every month? Paano ba sya magbayad? Cash ba or PDC? Pag PDC kasi ibig sabihin medyo maganda ang credit ni client, ‘di ba?

"We also check ung utang ng client sa credit cards and also from the interviews. Let’s say, the barangay or the neighbors, malalaman mo na kung palautang sya. And a lot of the businesses naman they are transparent sa mga utang nila eh. Malalaman mo kung malakas ito umutang o hindi.

"So if we have the net worth, let’s say, P10 million, then we can grant a loan of P1 million to P2 million kasi, in case na client will have some difficulties, he could just sell some of his assets to pay.

"Sa SME loans, marami kasi dyan na negosyante they need cash instantly. H alimbawa, may babayaran silang payroll na due, gusto nila mabilisan, so isasangla nila yung kotse nila or yung van nila. Nung una medyo matagal yung processing namin, mga four to five days. Pero nung nakuha na namin yung process, we can do one day or two days lang, released na.

4| Know how to foster vision-driven leadership and implement effective controls for sustainable growth

A clear and compelling vision serves as a guiding light, providing direction and purpose for the entire organization. It aligns employees and stakeholders towards common goals, fostering unity and motivation within the workforce. A strong vision also helps in decision-making, ensuring that all actions are in line with the overarching objectives of the company.

Implementing controls within the business is vital to ensure that operations run smoothly and efficiently. Controls help in monitoring various processes, detecting any deviations or irregularities, and mitigating potential risks.

Jordan emphasized the importance of establishing a clear and compelling vision for the company. He ensured that all team members believed in and were aligned with the company's direction. Additionally, he surrounded himself with a talented and capable team, recognizing the significance of having the right people in key positions.

To implement controls, Jordan prioritized comprehensive training and empowerment for employees, enabling them to contribute effectively to the company's goals. He established strong support mechanisms, such as an efficient audit committee and reliable financial reporting through reputable audit firms.

Jordan also underscored the significance of hiring competent HR managers who understood the company's vision and could drive the team towards achieving set targets. His reward system encouraged the management team to devise effective strategies to meet the company's objectives.

"First of all, you have to give them a vision," he says. "Eto yung direction nati. Yung vision. Importante yung vision. They have to really believe in your vision and your direction. So that’s one, and kasi I believe that if you are a leader, you have to surround yourself with good and right people. You need to get the best people.

"Then, of course, yung training. You have to empower them. You have to put all the supporting mechanics, like you have to have a good audit committee to help you police the operation. We also need to have good financial reporting. That’s why we got reputable audit firms. Our plan is not just to show a good report but yung tamang report to police ourselves. Kasi etong mga reputable external auditors, wala namang bias yan eh, basta ire-report lang nila yung tama. Walang pakiusap diyan.

"That’s what happens now. We do reporting twice a year—June and December, so ino-audit kami. And we pay for it. Laki ng binabayad namin para i-audit kami, semi-annually. Not only for this company, but all our other companies.

"Then we follow all the regulatory requirements on sustainability and risk assessment. We operate like a public company, so yung mga ganon, we need not only good leadership and good management, but also support from all the necessary functions.

"It is important that we put the right control mechanisms kasi, even if you have honest employees. But if you don’t have the right control mechanisms, pwedeng lumihis yan eh. We put controls sa lahat ng operations namin, para there is check and balance.

"Hindi pwedeng isang tao lang ang maga-approve niyan, so kahit ako, di ako pwedeng mag-approve lang. I can approve it but somebody else has to disburse it. Yung mga ganon. That’s how you grow a business. You really have to have all those infrastructures in place.

"When we hire the HR manager or HR head, it’s important that you hire a good one, and yung HR head needs to really understand our vision. You have to just tell them the vision and good managers would know exactly what they are supposed to do.

"You don’t have to tell them exactly what they’re going to do kasi dito sa amin, the way we operate, is I give the management a target, for example, an income target, and they will come up with plans on how to achieve that, so pag na-achieve nila yung target, may reward."

5| Know how to manage wealth and ensure long-term financial stability

Effective management of wealth allows individuals or businesses to make informed investment decisions and diversify portfolios. It enables the accumulation of assets over time, ensuring financial security during retirement or unforeseen circumstances.

By maintaining a disciplined approach to wealth management, individuals or businesses can avoid excessive spending and unnecessary financial risks. Sound financial planning, budgeting, and investment strategies contribute to the maintenance of a comfortable standard of living and protection against economic downturns or unexpected expenses.

Jordan managed his wealth by adopting a prudent and strategic approach to investments. He prioritized the allocation of funds into productive ventures rather than extravagant expenses, recognizing that money should be utilized as a tool for growth.

By directing his resources into new businesses and nurturing their development, he diversified his portfolio and facilitated the generation of multiple income streams, enabling his wealth to grow over time.

To ensure effective management, Jordan emphasized the importance of discipline, advocating for a modest and grounded approach to wealth. He understood that financial assets could easily dissipate without proper oversight and careful planning. By staying true to his values and maintaining a simple lifestyle, he has avoided the pitfalls of excessive wealth and has preserved financial stability for himself and his family.

"One thing I believe about money is that it's an investment, a means to grow," Jordan says. "As the saying goes, money begets money, di ba? When it comes to what I can pass on to my children, I believe that money should be put into investments, not spent on luxury goods, yung mga ganon. I don't own fancy cars or anything like that. Instead, the money I invest is directed towards new companies.

"We currently have 38 companies now. Money should be invested in productive uses because it's useless if it stays in the bank. It's not productive? For my children and for others, I believe money is important, but it shouldn't be the sole focus of their lives.

"Discipline is really important. Money is a liquid asset; it can disappear if you don't know how to manage it. Managing it and making it grow is a challenge because you can be overwhelmed by it. Dapat talaga you should stay modest, stay simple; otherwise, you can get lost along the way if you have too much money. It will destroy you and your children. The way I am with my children is, I don't demonstrate that I have a lot of money. What I am now is the same as what I was 20 years ago, 30 years ago.

"Normally, I invest in businesses that I partly own. The secret to a business is to put good people there. Eventually, it will find a way to grow itself and then you share the fruits of the business. That money can really grow thousands of times over.

"I also read a lot, around two to three management books a month. I read about 30 minutes to one hour every night but during weekends or when I’m traveling, doon talaga ako bumabawi. I read sa airplane or sa airports. Minsan pag nag sa-shopping misis ko, nagbabasa ako, kasi kawawa naman ako nag sho-shopping siya, nakatambay lang ako dun, di ba?"

Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice [email protected] or follow him on Twitter @henryong888