BPI thrift unit opens franchise financing facility

The thrift bank unit of the Bank of the Philippine Islands has thrown its weight behind the country’s franchising industry, recently unveiling a financing facility aimed at helping budding entrepreneurs participate in “tried and tested” business chains.

In a press briefing last week, BPI Family Bank president Jose Teodoro Limcaoco said that the bank’s new Ka-Negosyo program will widen opportunities for micro, small and medium entrepreneurs who want to open franchise establishments.

Under the scheme, would-be entrepreneurs can select businesses from the bank’s pre-screened list of franchise brands and avail themselves of financing from the Ayala-owned financial institution to serve as their start-up capital.

The loans start from as low as P500,000, and may even be granted on a collateral-free basis, depending on the credit worthiness of the borrower, Limcaoco said.

“With the BPI Family Ka-Negosyo program, we give them the best deals for their investments and make business easy for them,” he said. “We are further reaching out to the franchising sector… where existing and would-be franchisees can get the best franchising deals from our Ka-Negosyo Best List brands.”

To date, 30 franchise brands have been accredited to aid potential franchisees in making their choice among tried-and-tested brands.

The bank also made Ka-Negosyo Best List’s 11 franchise brands available at the Ka-Negosyo Expo launched last week where clients got to scout for the best franchise deals.

Some of the bank’s covered franchise brands include Aquabest, Bodega Site, Fruitas, Generika, Hungry Juan, Julie’s Bakeshop, Lydia’s Lechon, Ministop, Phoenix Petroleum, PR Gaz and Razon’s.

“BPI Family is the expert financing partner of the MSMEs,” Limcaoco said. “We make it easy for entrepreneurs to jumpstart, support and expand their businesses through the strategically designed programs and initiatives of BPI Family Ka-Negosyo.”

“Through this Ka-Negosyo Expo, we encourage more and more Filipinos to take advantage of the business opportunities we and our franchise brands offer and be able to contribute growth not just to the franchising industry but to the country’s economy as well,” he added.

BPI Family Savings Bank official said that their Ka-Negosyo franchising loan suits the requirements of franchisees, from starting up to keeping their businesses growing.

The program is geared toward budding entrepreneurs who have limited business experience who would benefit from the bank’s advice on which businesses to get into and what kind of financing package to get.

For a franchise business to qualify for borrower financing, meanwhile, bank officials said that they should have a proven track record of profitability as well as an existing network.

Limcaoco clarified, however, that the facility is not meant to help entrepreneurs set up new franchise businesses, but to participate in existing and successful franchise chains.