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Lender offers new loan products to help SMEs meet challenges

The Bank of the Philippine Islands (BPI) on Tuesday introduced new loan products and programs designed to help small and medium-sized enterprises (SMEs) “address today’s business challenges and take advantage of emerging market opportunities.”

“While Filipino SMEs are considered important drivers of our country’s economic growth, they tend to be more vulnerable to headwinds and market volatility, as well as industry disruptions and competition. They need support from various sectors of the ecosystem to survive and thrive,” said BPI Senior Vice President Dominique R. Ocliasa.

“With our latest BPI Business Banking offerings, we are giving them a helping hand by providing practical and simple financing solutions, as well as relevant advice and assistance throughout their journey to help them realize their ideas, overcome problems and aim for greater achievements,” adds Oclasia, Head of BPI Business Banking.

Maricris L. San Diego, Marketing Systems Product and Campaign Manager for Business Banking at BPI, cited several borrowing options they offer to SMBs.

The “Ka-Negosyo Line of Credit” (KCL) is ideal for recurring business expenses such as raw material and finished goods inventory, employee salaries, utilities, equipment repair and maintenance, and selling or distribution costs, San Diego said.

“It’s like an extended portfolio that allows the company to take advantage of any opportunity at any time,” she added. “SMBs can rest easy even when faced with unexpected expenses.”

San Diego said the KCL is accessible via an emergency checkbook that can be used to immediately pay for any on-site needs or business emergencies.

Another loan option is a “Loan Loan” (KRL), which is available to SMEs with seasonal working capital needs, such as storing supplies and inventory for Christmas and holidays, harvest seasons or peak trading seasons. According to San Diego, this option gives the business owner the flexibility to focus on growing the business and seizing sales opportunities, instead of constantly managing cash flow, especially during off-seasons or slow.

“With a shorter repayment period, it is ideal for SMEs with cyclical financing needs that will be repaid from a faster conversion or economic cycle.”

The third borrowing option is the “small business loan” (KSL) which, according to San Diego, “can help support small businesses that aspire to diversify, expand their product lines, purchase new equipment, or meet to other capital expenditures.

“It makes the expense affordable and light, as the loan repayment is monthly and can be spread over a long period,” she explained. “KSL also has an option for capital expenditures that require longer payment terms, such as the construction and acquisition of major fixed assets.

Meanwhile, 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 and as the real estate asset generates more profits for the company.

“Providing convenient access to SMBs is key to supporting them and seeing them grow,” San Diego said.

SMEs interested in using KCL or PAL will receive a processing fee waiver at an event hosted by BPI on September 15.

The lender said the event features promotions for businesses on loans, digital banking platform for SMEs, insurance plans and group membership where small business owners can access exclusive discounts from partners and subsidiaries of Ayala Corp., the parent company of BPI.

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