BPI launches new loan products tailored for small and medium businesses

BANK of the Philippine Islands (BPI) has launched new loan products and programs targeted for small and medium enterprises (SMEs), it said in a statement on Tuesday.

The new products are the Ka-Negosyo Credit Line, the Ka-Negosyo Ready Loan, the Ka-Negosyo SME Loan, and the Property Acquisition Loan.

“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. They need support from various sectors in the ecosystem to survive and thrive,” BPI Business Banking Head Dominique R. Ocliasa was quoted as saying.

“With BPI Business Banking’s business solutions and knowledge resources for SMEs, BPI continues to reinvent itself to offer client experiences designed to address their current realities, stay relevant, and provide real value to its key stakeholders,” Ms. Ocliasa said. “With resilience, agility, and foresight, BPI is carrying on its rich heritage of banking excellence and innovation by reinventing banking for a more inclusive and better Philippines.”

The Ka-Negosyo Credit Line can be used at any time through a standby checkbook for recurring business expenses such as raw materials and finished goods inventory, employee wages, utilities, equipment repair and maintenance, and sales or distribution costs.

On the other hand, the Ka-Negosyo Ready Loan is for SMEs with seasonal working capital requirements, such as supplies and inventory for Christmas and holidays, harvest seasons, or peak business seasons as it gives a business owner flexibility in managing cash flow. Its shorter repayment period is designed for cyclical funding needs.

Meanwhile, the Ka-Negosyo SME Loan is offered to SMEs in need of capital to expand product lines and purchase equipment, among others. Payments are made on a monthly basis and can be stretched for longer terms. There is an option to take out the loan with or without collateral, BPI said.

Similarly, the Property Acquisition Loan is for SME expansion but for assets purchases and construction. The payment period can likewise be spread over the long term and as the asset earns more profits for the business.

Processing fees for SMEs interested in availing of the Ka-Negosyo Credit Line and Property Acquisition Loan will be waived at BPI’s upcoming Ka-Negosyo Festival from Sept. 15 to Oct. 15. — D.G.C. Robles