Loan products for SMEs rolled out

Bank of the Philippines Islands has rolled out its latest “Ka-Negosyo” loan offerings to help spur the growth of small and medium enterprises (SMEs) as the domestic economy reopens and gathers steam for recovery from the impact of the COVID-19 pandemic.

Dominique Ocliasa, head of BPI Business Banking, said SMEs needed support from various sectors in the ecosystem to survive and thrive.

“While Filipino SMEs are seen as important drivers of our country’s economic growth, they tend to be more vulnerable to market headwinds and volatility, as well as industry disruption and competition,” Ocliasa said.

“With our latest offerings, we are giving them a helping hand by providing convenient and simple financing solutions, as well as relevant advice and assistance throughout their journey to help execute their ideas, overcome their problems, and strive for bigger achievements,” he added.

Among the loan options is the Ka-Negosyo Credit Line (KCL), which is ideal for recurring business expenses such as raw materials and finished goods inventory, employee wages, utilities, equipment repair and maintenance, and sales or distribution costs.

Another option is the Ka-Negosyo Ready Loan (KRL), which is available for SMEs with seasonal working capital needs, such as stocking up on supplies and inventory for Christmas and holidays, harvest seasons, or peak business seasons.

With a shorter repayment period, it is ideal for SMEs with cyclical funding needs that will be repaid from a quicker conversion or business cycle.

Still another is the Ka-Negosyo SME Loan (KSL), which can help support SMEs who are aspiring to branch out, expand product lines, purchase new equipment, or meet other capital expenditures (capex).

KSL also has an option for capex that need longer payment terms, such as major capital asset construction and acquisition. This is the Property Acquisition Loan (PAL), which spreads the payment term over a long period of time, and as the property asset earns more profits for the business.

Ocliasa said the BPI group has more than 100,000 SME clients, most of which do avail themselves of loans from the bank. Loans available range from P300,000 to P15 million.