SMALL AND MEDIUM ENTERPRISE LOAN PRODUCTS

Working Capital Loans

Credit Line – These are short-term loans to boost inventories and receivables in support of increasing sales, which are repaid from the cash conversion of short-term assets, mostly receivables/inventory. This credit facility enables clients multiple opportunities for availment.

Permanent Working Capital (Term Loan) – This loan product provides the minimum level of working capital needed to sustain continuous operations for clients’ business in light of business or financial fluctuations such as changes in credit terms of receivables and increases in business volumes or sales. This facility can be for inventory acquisition, cash flow adustments and other requirements to ascertain continuous operations.

Fixed Asset Financing – Term Loan

This is medium or long-term financing for funding:

• Equipment and capital asset acquisition secured by the item to be financed;
• Fixed asset construction or improvement for business expansion and enhancement secured against bank deposits, real estate or chattel mortgages.

Possible Markets

These types of loan products are targeted for business establishments in the Bank’s vicinity.

Eligible Borrowers

Prospective clients who may avail of these loan facilities include:

1. Small and Medium Enterprises (SMEs) – enterprises with an asset size of not more than 100 million (excluding the value of land used for the project) which are engaged in industry agribusiness and /or services, whether single proprietorship, cooperative, partnership or corporation;

2. Corporate Clients – corporations or institutions with total assets (net value of land used in the project) of more than P100 million as of date of application;

3. Cooperatives (Coops) – associations of persons with a common bond of interest who have voluntarily oined together to achieve a lawful common social or economic end and duly registered with the Cooperative Development Authority (CDA);

4. Other entities or enterprises as may be deemed appropriate and acceptable.