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Is BPI Ka-Negosyo Loan Fit for Your Business Needs?

Filled under: Borrow Business 

If you have nothing to complain about your job, then you are either not really working or you are your own boss. Most Filipinos have at least one thing that makes them hate their jobs, and if you are one of those who do not want to slave under a person forever since you have better ideas churning in your brain, then why not start a business.

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Of course, your main reason why your business ideas are still not in the realms of reality is lack of funds. Good news for you, there are loans specially created for businesses such as the BPI Ka-Negosyo Loan. You do not have to grow old being an employee forever. When your entrepreneurial mindset kick started with a much needed capital, you can be unstoppable. Get a business loan that best fits your business needs by considering various questions such as:

  • Are you eligible?
  • Can you provide all the requirements?
  • Do you need collateral or a co-maker?
  • Ho w much can you loan?
  • What are the terms?

BPI Ka-Negosyo Loan

BPI Ka-Negosyo Loan is one of the accessible loans provided by BPI to many Filipinos. It is not only offered for startups, as it can also be used by existing businesses which seek expansion, keeping up or increasing of productions, and franchising. BPI Ka-Negosyo Loan has three categories you can choose from according to your purpose or current financial capabilities. To avail BPI Ka-Negosyo Loan, you have to be at least 21 to 65 years old upon the settlement of the loan.

TERM LOAN

If you want to build a startup company and you want either a short term or long term funding, then you may choose the Term Loan. This is also for existing enterprises which has long term plans to expand or increase production.

This is offered to entrepreneurs who have at least 3 years of profitable business operation or to Filipinos with at least 3 years of consistent income. If you are 18 years old or not alder than 21, you can have your parents as your co-borrower.

Let’s say you have decided to get the Term Loan, then you must be ready to borrow at least P500,000. If you want to get lesser amount, then you may opt to just apply for a personal loan. By chance that you are going to use a house and lot or vacant lot or residential condominium, you can borrow as much as 70% of the appraised value of your asset.

How can you say that Term Loan is your best bet? Let’s say this is best for you if you already have a business development plan with definite goals and timelines. Then you can decide if you are going to get your loan as a whole or in part.

CREDIT LINE

You can use this if you have a business which needs short term funding during holiday seasons. You could be running a bake shop, a flower shop, a gift shop or a specialty store which could have fluctuating client demands depending on certain holidays or seasons, then you need a working capital to add more stocks to your inventory.

You can be eligible for Credit Line if your business has already a record of three consecutive years with profitable cash inflow. The loanable amount will depend on the credit evaluation done by the bank on your business or collateral. Since this loan is best for seasonal or short term needs, you can settle it within a year and can be renew depending on the credit assessment. You can receive the loan through:

  • Issuance of Check
  • ATM Withdrawal
  • EPS Transaction
  • Fund Transfer Online

You will be charged with 4.50 % interest rate for 90 days. The soonest you can settle the loan will be better, though you have to make sure that you will not be charged with early repayment fees buy asking your loan manager.

Franchising Loan

If you are a fan of food carts, then franchising could have crossed your mind. Since franchising is not new in the Philippines, BPI has developed a loan especially for it. You can choose a brand you can franchise from a list provided by BPI depending on your budget or brand preference. Like the Term Loan, only those with three years of profitable business or three years of stable income can apply for a loan provided that they are of legal age and not older than 65 years old.

You can check out BPI’s Franchising Loan for Best List Brand Partners found in its website with a minimum budget of P100,000. Once you have chosen your franchising brand, you can borrow as much as 60% worth of the Total Franchise Investment. By chance that you want to franchise a brand not listed by BPI on its site, you have to borrow at least PHP 500,000 Loan Amount and not more than 60% of Total Franchise Investment.

Franchising Loan can be a non-collateral loan payable for 1 to 3 years and you can even choose a Lite Mode payment. This means that you will only be required to pay the interest on the first six months without the principal loan. Then you can start paying the principal loan with the interest on the seventh month onwards since we know that franchises usually do not yield income for the first six months.

Benefits

BPI Ka-Negosyo Loan gives you three options all with different purposes and will depend on your current business plans or outlook. The Term Loans are for those who have assets they are willing to use to get a loan which can stretch up to five years. You can use this loan if you think you have to make a couple of investments rather than one big spending. As for the Credit Line, it is best to use it as working capital for buying equipment or restocking your inventory. Franchising Loan is for individuals who want to start a franchising business either from the BPI list of best brands or your own choice of brand.

Downsides

Most of the loans require an asset as collateral, and though you can opt for a non-collateral loan, this is only offered for Franchising Loans. This proves to be very limited and will not be accessible for budding entrepreneurs who have no assets yet. Also since the minimum loanable amount for Term Loans is P500,000, this cannot be the best choice for micro-businesses. Micro-businesses usually need less than P100,000 to start its operation.

If you need around P5, 000 to P30, 000 to start your sari-sari store or other micro-business, you can get a fast cash loan from Cash Mart today. Cash Mart offers online loans which you can get within 24 hours by submitting your minimum required documents. Start processing today.

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