Business venture in the midst of home buying

Illustration by Steph Bravo

Say you’re working abroad, pouring bulk of your hard earned savings into your dream home here in the Philippines. But it just so happened that right within that same neighborhood are small pockets of commercial areas where you think your loved ones can start your dream business.

Is it practical to for you to go and launch your brilliant business idea while paying for a home?

Don’t shrug off that entrepreneurial bug just yet. It’s still possible for you to achieve your home goals while running a business—that is, as long as you do some careful, thorough research on your planned business and the options presented by your developer, know your financial capacity and your limits, and of course, have a reliable partner like local banking giant Metrobank to see this dream venture through.

Fortunately, many local banks are currently offering such loans to eligible overseas Filipino workers (OFWs) wanting to put up their own business so they can eventually head back home and stay with their family for good. Metrobank offers here a few tips for these budding entrepreneurs to help equip them with the skills and knowledge to start a venture.

After all, you can’t just start a business because you have money to invest. You should, more importantly, know where to invest it and with whom to entrust your hard earned cash.

1 Check different websites to know more about the OFW loans offered by government financial institutions and private banks.

Metrobank, for instance, offers several flexible loan facilities, geared towards small and medium sized enterprises (SMEs). It has the Puhunan Loan, Franchising Loan and Agri-Loan which can help you kick-start your business.

Credit facilities for these loan offers include SME Credit Line, which is for working capital or business operations; a Straight Loan meant for short term funding; or a Long Term Loan, which can be used for business expansion, property acquisition, renovation, and construction intended for commercial use, medium term loan equipment/machine acquisition, franchise financing depending on your business, or take-out of loan from another bank either for working capital needs or expansion.

2 Check the interest rates, loan amount, and requirements. These information are often readily available on the bank websites. Metrobank, for instance, has a loan calculator that can give you an idea about your indicative monthly amortization by providing the type of loan, loan amount and terms.

3 Remember that loan applications need to be coursed through legitimate and legal channels. Depending on your needs, banks usually offer initial business capital of up to P2 million. Metrobank SME, for its part, allows one to borrow anywhere between P1 million and P20 million, subject to existing credit policies, and depending on your capacity for repayment.

4 Inquire about the financial literacy seminars conducted or hosted by the Bangko Sentral ng Pilipinas (BSP), which educate participants on the importance of using remittances to build up savings and directing these into investments in financial products and/or business ventures.

The BSP has several learning programs where you can gain some valuable insights. Best to check its website regularly for updates and announcements.

5 Check the Department of Trade and Industry (DTI) seminars for small businesses, as well as information on how to put up a business. This agency, which has put SMEs at the front and center of its economic agenda, has been aggressively putting up Negosyo Centers across the country.

Try to find one nearest your area as these centers will provide assistance regarding finding available financing options, patent application guides, market development services, and product development and export. These can likewise help you with business registration and facilitate access to business services, among others.

6 Check banks that offer not only loans but also development programs for SMEs.

7 Know the basic requirements: Accomplished information sheet, a business plan that shows a clear description that the project can earn a particular amount per month, and a certificate of entrepreneurial development training, among others. Best to ask your local bank representative in case you have additional questions.

8 Make it a point to read entrepreneurship stories—both about the successes and failures as these can provide you valuable lessons you must emulate and the business pitfalls that you should avoid. Banks like Metrobank have uploaded on their website such stories where you are sure to gain some fresh insights that will prove useful for your planned venture.

At the end of day, it’ll be up to you to decide if you can push yourself further to bring out the entrepreneur in you. Just make sure to be cautious, rational and objective, and of course, tap a bank like Metrobank to make sure you’re in good hands.