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Is RCBC Savings Bank's My Biz Loan Simple Enough for Pinoys?

RCBC Savings Bank’s My Biz Loan is an SME loan giving entrepreneurs three loan options depending on their preferences and purpose. These short-term secured loans address the usual small and medium business needs of Filipinos.

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RCBC Savings Bank’s My Biz Loan

RCBC offers SME loans with a minimum amount of a P1million. Meanwhile, the maximum loan amount is 60% of the collateral’s appraised value (AV). Why? Since these loans are secured loans.  

An individual client must be a Filipino citizen of legal age but not older than 65 upon the maturity of the recent loan. As for a corporation, 60% must be owned by Filipinos. It must have at least three years of successful business operations.
The acceptable collaterals are residential, commercial, and industrial properties. It can either have improvements or none. Aside from real estate mortgages, RCBC also accepts deposit placements, Joint and Several Signatures of principal officers on bonds, shares and stocks, and machinery, equipment, and inventory. If you are a startup with no collateral, this loan is not fit for you.
Usually, clients must submit personal, income, and trade documents. But, they also have to include a photocopy of the passbook of all the client’s banks for the last six months. Automated transfer accounts are not counted. The applicant must also present the last three months’ credit card bills. You can’t get an SME loan if you do not have a credit card. Utility bills must also be with proof of payment.

Credit Line and Accounts Receivable Purchase Line 

With Credit Line, the entrepreneur can get a loan with a promissory note covered by collateral that the bank has approved.
On the other hand, the client can also use the Accounts Receivable Purchase Line. Aside from the real estate as collateral, post-dated customer checks are also acceptable. Simply said, if you have customers who haven’t paid yet, it causes your company to get stuck. RCBC can give you a loan based on the unpaid invoices in faith that your customers will eventually pay. Newer checks are preferable to old ones.
This SME loan payment may be in a year and renewed annually. And the interest can be paid in advance. Meanwhile, the principal loan can be paid later before the maturity of the loan.

Domestic Standby Letters of Credit

The Domestic Standby Letters of Credit is a letter issued by a bank on your behalf to increase your creditworthiness. This will make your bank responsible for your credit if you become incapable of paying. Issuance Fee with the minimum amount of P2, 000 or 1/8 of 1% of the certificate’s amount multiplied by the number of months for which the certificate will be valid. This loan is usually used for additional working capital or the acquisition of additional equipment for more production.

Term Loan

This loan finances business expansion, construction, renovation, and acquiring fixed assets. You can apply for a loan that can expand up to seven years, however, if your purpose is construction, the actual building must not exceed a year of construction. You must provide an illustration or vicinity map of the location. Also, you may try using the RCBC loan calculator to estimate the loan amount you can get at a specific term. 
Depending on the bank’s approval, you can pay only the interest for the first year or during construction. The principal loan can be paid a year after the drawdown date.

Trade Reference

Whichever you are going to use as your SME loan, you must remember that you must list all of your major suppliers and customers with their contact persons and contact details. If you are a conservative entrepreneur or your customers, you must be brave to ask them if you can give their details to the bank. Also, if your business needs do not reach P1, 000,000, then it is better to opt for another option. Remember that as a golden rule of borrowing, you only must borrow what you need and the amount you can confidently pay to avoid further financial dilemmas.
RCBC Savings Bank’s My Biz Loan may be complicated for small to medium enterprises if you are unable to meet the requirements. If you need a quick cash loan for immediate minor business needs? You can get a loan from Cash Mart today.