It is worth remembering that promoting the growth of SMEs is a primary focus of national policy. To achieve this goal, all banks must issue at least 8% of total credit portfolio to SMEs .
Also, the Central Bank of the Philippines allowed banks to place less mandatory reserves in the BSP if the increase goes to new loans for SMEs.
Therefore, it is worth carefully studying these proposals.
If your business has reduced sales, but customer demand remains, it is wise to take out a Business loan to retain customers. After all, to cover the costs – you need money. And to rebuild your sales system to sell through the Internet, you also need a financial injection.
As they say, “Nothing ventured, nothing gained”.
Although the risk is unavoidable, it is better to reduce it and choose the most profitable Business loans for your company.
What banks offer entrepreneurs?
1. The Development Bank provides loans to entrepreneurs. Since 2013, DBP has launched a retail lending program for small businesses in 45 branches. It is not an unimportant fact that you can apply for a loan online.
DBP also offers a favorable lend for OFW who plan to open a business in the Philippines – the OFW reintegration program. Project must have a confirmed purchase order that will create a profit of at least PHP 10000 p.m.
Interest rates range from 7.5% to 12% APR, the loan term is from 7 to 10 years. In addition, the Bank offers a grace period, read more about the terms of lending on the Bank’s website.
2. Landbank provides the following favorable loans for small businesses:
- I-Rescue Lending Program
- Agricultural and Fishers Financing Program
- Agricultural Credit Support Project
I-Rescue Lending Program was created in support of the Republic’s law No. 11469 as temporary measures for micro and medium-sized enterprises, microfinance organizations (MFOs) and coops. The credit is granted until December 31, 2020 (IR – 5% APR, the credit term not more than 5 years and a Deposit is required).
If you are an employee working abroad, but want to build your business in the Philippines, then you should carefully study the Landbank credit – OFW Reintegration Program (minimum loan amount P100000, IR – 7.5% APR,).
Are there any non-standard ways to attract money?
Entrepreneurs who have suffered from COVID-19 may receive assistance from a small business corporation. Since May 2020, the corporation, under the leadership of the Ministry of Trade and Industry, has been providing financing for the restoration of enterprises in the amount of P1.0 billion.
The credit Fund will have the following features:
- Microenterprises with assets of no more than PHP 3.0 million. it can take 10000 PHP – 200000 PHP;
- SMEs with assets less than PHP 10.0 million can take up no more than 500,000 PHP.
The loan is provided to help the company stabilize. The interest rate should be 6% APR, and a grace period on payments is provided until the economic crisis subsides.
Where to find out about all available loans for SMEs?
The article provides only a small portion of business loans. You can find all available offers on crediting your business on the website upfinance.com. The Upfinance service is easy to use. To view all loans for small businesses, you need to go to the Top menu and select the Loans section and click on Small Business loans in the drop-down list. Companies offering this type of loan will appear on the page.
So easily and quickly you can get acquainted with all the offers. Good luck in your business!
