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RETAIL LENDING PROGRAM > SME E-FIRST EXPANDED

 

SME-FIRST EXPANDED
Financing for Receivables of Suppliers’ Transactions-Expanded

Program Description

A transactional or one-year revolving credit facility of Small Business Corporation to finance purchase orders of suppliers of domestic anchor firms. It aims to help MSME-suppliers of domestic anchor firms that require additional working capital for bridge financing or for simply seizing a business opportunity. This facility is primarily intended for graduates of SBGFC’s SME-FIRST facility.

  • Product Features
Type of Facility Transactional or One-year Credit Line
Loan Amount
  • Minimum of P200,000
  • Maximum of P8 Million
  • Up to 70% of purchase orders
  • Initially up to P2 Million loan limit
  • Up to P3 Million if PO is from a government corporation or line agency
Purpose of Loan

Financing of purchase orders from:

  • Top 2,000 corporations (based on SEC listing)
  • Government corporations or line agencies
  • Accredited industry anchor firms
  • Cebu-based top exporters
Repayment Term Maximum of 180 days term per drawdown, based on collection schedule
Term and Line Expiry One year from date of approval, subject to renewal of line
Collateral Cover
  • Real Estate Mortgage or Chattel Mortgage on motor vehicle
  • May be clean up to P2 Million, if SBC directly collects payment from the anchor firm-buyer
Other Terms of Financing
  • The borrower should agree to open a checking account in the designated bank of SBGFC
  • The borrower should notify the approved anchor firm-buyer on the collection mechanism
  • Minimum Borrower Qualifications
    1. Filipino-owned enterprise; in the case of corporation, must be at least
      60% Filipino-owned
    2. Asset size not less than P500 Thousand and not more than P100 Million (excluding the value of land)
    3. Positive BIR-filed net income for the past immediate year
    4. Project to be financed not into farm-level agri-aqua aqua production, extractive activities or vice-generating operations
    5. Track record must be as follows:
      • Graduate of SME-FIRST loan facility (at least five paid SBGFC transactions)
      • Need not pass the SME-FIRST if borrower is:
        - A supplier of Top 200 corporations for at least two years
        - A supplier of an anchor firm who is willing to directly pay SBGFC its share on the financed PO, as covered by a MOA
  • Qualifications of Anchor Firm-Buyer
    1. Its financial profile and performance are within the standards set by SBGFC
    2. The anchor firm should not, to any degree, related to the borrower in terms of stockholdings and/or family ties
    3. It has not subjected the borrower to any bad debt in the past
    4. Its speed of payment does not exceed 180 days
    5. For non-top 1000 corporations, the anchor firm must be willing to directly pay SBGFC the financed portion of the receivables, as covered by a MOA

Documentary Requirements

 

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