Micro, small and medium enterprises (MSMEs), exporters and agricultural enterprises can avail of financing for working capital or expanding their businesses through the lending programs of state-run Development Bank of the Philippines (DBP).
Rallen Verdadero, Manager of Program Development Management of the DBP, said the bank has introduced the medium enterprise and other business enterprise lending, the retail lending for micro and small enterprises, and sustainable agribusiness financing program (SAFP).
Verdadero said medium and other business enterprises can turn to the facility providing credit assistance for their working capital, export financing, fixed asset acquisition, franchise acquisition, re-lending to cooperatives, and purchase order/letter of credit (PO/LC) financing.
She noted loanable amount is up to 90 percent of the total project cost for other business enterprise, and a maximum of 80 percent for medium enterprise.
Its interest rate is based on prevailing market rates while tenor is based on cash flow, she said.
Verdadero added the retail lending for micro and small enterprises provide financing for the same purpose, but tenor depends on enterprise development period and not to exceed 10 years, payable based on business cash cycle.
Verdadero said the SAFP, on the other hand, provides credit for agribusiness projects engaged in the production, harvest, processing, and marketing of crops, poultry, livestock, and fishery.
Apart from these lending programs, she said the bank is offering other products and services for export.
These are export LC, a credit issued by a foreign correspondent bank in favor of a local beneficiary/exporter; export/domestic packing credit, a loan given to the exporter/seller client for the purchase of raw materials or for the manufacture of goods intended for sale; and export bills purchase wherein the bank pays in advance the client’s export bill for collection.
Verdadero said documentary requirements include income tax return and audited financial statement for three years if applicable, bank statement, and business plan, among others.