Gov’t offers financing programs to exporters, MSMEs

SunStar Business
SunStar Business

GOVERNMENT financing institutions are making available financing programs and facilities which exporters and aspiring exporters as well as micro, small and medium enterprises (MSMEs) can tap to start or expand their business.

The Small Business Corp. (SBCorp), Land Bank of the Philippines (LandBank) and Development Bank of the Philippines (DBP) presented these financing programs and facilities during the Usapang Exports session organized by the Department of Trade and Industry-Export Marketing Bureau.

Yvonne Diala, program officer of the Programs Management Department II at LandBank, said the bank offers tailored-fit financial solutions that meet the needs of the exporters.

Diala said these credit facilities include short-term loan/line, term loan, export packing credit and line/export bills purchase line.

“We offer a short term loan/line, or this is a project facility to augment the working capital requirements of our borrowers. We also offer the term loan which provides financing of capital expenditures such as acquisition of machinery and equipment, construction of your manufacturing, office building or warehouse, among others, except for land acquisition, and for the financing of your permanent working capital requirement,” she said.

Diala said export packing credit line is a short-term loan that provides assistance to exporters who are beneficiaries of a letter of credit (LC) for their pre-shipment working capital requirement such as for production of goods for export and cost of labor.

She said the bank can also finance the borrowers’ working capital requirement of up to 80 percent of the borrower’s project cost, with 20 percent as borrower’s equity.

“LandBank offers a range of loan facilities, providing the necessary financial support to expand your operations, enhance competitiveness and seize new market opportunities,” she added.

Diala further said the bank also has special lending programs which include the high value crops and value-chain lending program, poultry and livestock value chain lending program, aqua lending program, innovation and technology lending program, ecozone lending program and renewable and efficient alternative energy financing program.

“For the non-agri(culture)-based lending program, you have the innovation and technology lending program. This one is a program in partnership with DOST (Department of Science and Technology)-Technology Application and Promotion Institute which aims for those who are inventors who want to commercialize their patented inventions and innovations,” she said.

Wally Calderon, SBCorp vice president for Innovation and Advocacy, said there are three products they offer –the Micro Multi-Purpose Loan for multi-sectoral microenterprises with at least one year business track record; SME Multi-Purpose Loan First Timers for MSMEs with at least two years business track record; and MSME Multi-Purpose Loan Suki for existing borrowers of SBCorp in good standing with at least six months repayment track record.

“We have increased our loanable amount from P10 million previously to P20 million, and loans up to P3 million are collateral-free for first-time borrowers. For our existing borrowers, our collateral-free loan is up to P5 million,” he said in mixed English and Filipino.

Calderon said the actual interest rate is less than 1 percent per month as based on diminishing balance, while loan term is payable monthly for up to three years.

Myra Almogino-Calara, head of SME NCR Department at DBP, said export products and services offered by the bank include the commercial letters of credit (LC)/standby LC advising, inward export proceeds, outward bills for collection and export bills purchase.

She also cited the Bureau of Customs (BOC) collections and remittance of customs duties.

The bank has an agreement with the BOC to automate the collection and remittance of customs fees and charges that are generated through the 17 customs districts nationwide.

Aside from LC and standby LC, Almogino-Calara said other modes of payment include documents against acceptance, documents against payment, open account, direct remittance and advance payment.

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