Ayala-led Bank of the Philippine Islands (BPI) is introducing new loan products geared specifically to the backbone of the economy, the small and medium enterprises.
Offered under Ka-Negosyo Loans, SMEs can start availing themselves of the loans starting Sept. 15.
“While Filipino SMEs are seen as important drivers of our country’s economic growth, they tend to be more vulnerable to market headwinds and volatility, as well as industry disruption and competition. They need support from various sectors in the ecosystem to survive and thrive,” Dominique Ocliasa, head of BPI Business Banking, said in a statement.
The Ka-Negosyo Credit Line (KCL) is ideal for recurring business expenses such as raw materials and finished goods inventory, employee wages, utilities, equipment repair and maintenance, and sales or distribution costs. It is like an extended wallet that allows the business to take advantage of any opportunity at any given time. KCL can be easily accessed through a stand-by checkbook which can be used to immediately pay any on-the-spot need or emergency of the business.
The Ka-Negosyo Ready Loan (KRL) is available for SMEs with seasonal working capital requirements, such as stocking up on supplies and inventory for Christmas and holidays, harvest seasons, or peak business seasons. It gives the business owner flexibility to focus on growing the business and seizing sales opportunities, instead of constantly managing cash flow especially during off or slow seasons. With a shorter repayment period, it is ideal for SMEs with cyclical funding needs that will be repaid from a quicker conversion or business cycle.
The Ka-Negosyo SME Loan (KSL) can help support SMEs who are aspiring to branch out, expand product lines, purchase new equipment, or meet other capital expenditures. This makes the expense affordable and light on the pocket, as paying the loan is monthly and can be over a long period of time. KSL also has an option for capital expenditures that need longer payment terms, such as major capital asset construction and acquisition.
The Property Acquisition Loan (PAL) makes it more convenient and comfortable for the business owner to invest in such an expense. PAL spreads the payment term over a long period of time, and as the property asset earns more profits for the business.
SMEs interested in availing of KCL or PAL will enjoy waived processing fees at the upcoming BPI Ka-Negosyo Festival from Sept. 15 to Oct. 15, 2022.