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RETAIL LENDING PROGRAM > SME FIRST

 

SME-FIRST
Financing for Receivables of Suppliers’ Transactions

Program Description

A transactional or one-year revolving credit facility of Small Business Corporation which aims to help bridge the financing gap faced by MSME-suppliers of domestic anchor firms resulting from long receivables turn-around time.

  • Product Features
Type of Facility Transactional or One-year Credit Line
Loan Amount
  • Minimum of P200,000
  • Maximum of P8 Million
  • Up to 80% of receivables
  • Initially up to P2 Million loan limit
  • Up to P3 Million if receivable is from a government corporation or line agency
Purpose of Loan

Financing of receivables from:

  • Top 2,000 corporations (based on SEC listing)
  • Government corporations or line agencies
  • Accredited industry anchor firms
Repayment Term Maximum of 120 days term per drawdown, based on collection schedule
Term and Line Expiry One year from date of approval, subject to renewal
Collateral Cover
  • Real Estate Mortgage or Chattel Mortgage on motor vehicle
  • May be clean up to P2 Million, if SBGFC 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 Small Business Corporation
  • 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. May be less than one year in operation as long as borrower already has a receivable from a qualified anchor firm
    4. Positive BIR-filed net income for the past immediate year
    5. Project to be financed not into farm-level agri-aqua aqua production, extractive activities or vice-generating operations
  • Qualifications of Anchor Firm-Buyer
    1. Its financial profile and performance are within the standards set by Small Business Corporation
    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 120 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

For more information about our products, please contact us