| RETAIL LENDING PROGRAM > SME FORCE
SME-FORCE
Financing for Organizationally Competent and Excellent Franchise Businesses
Program Description
A direct lending facility of Small Business Corporation which aims to support various players in the franchising industry, including franchisors, franchisees and suppliers of franchisor-firms. The franchise concept may either be homegrown or international and must be a member of an SBGFC partner industry association.
Product Features
| Type of Facility |
- Term Loan
- Transactional or One-year Credit Line
|
| Eligible Borrowers |
- Start up or expanding franchisee
- Start up franchisor
- Expanding franchisor
- Supplier of franchisor-firm
|
| Loan Amount |
- Minimum of P200,000
- Maximum of P10 Million
- Must not exceed:
- 70% of the project cost
|
| Purpose of Loan |
- Fixed Asset Acquisition
- Building construction/improvement
- Equipment/vehicle acquisition
- Lot acquisition (limited to 25% of total loan)
- Working Capital
|
| Repayment Term |
- Term Loan – maximum of 5 years, with up to one year grace period
- Transactional or One-year Credit Line – up to 180 days term per drawdown
- To be amortized monthly or quarterly
|
Loan Terms per Type of Borrower
| Type of Borrower |
Nature of Financing |
Collateral |
Business Track Record |
| Start-up or expanding franchisee |
- First outlet for a new franchisee
- Another outlet for an existing franchisee |
- At least 50% Corporate Guarantee franchisor on the franchisee-borrower’s loan; or
- Equivalent titled REM and/or CHM on motor vehicle |
- May be start-up |
| Expanding franchisor |
Establishment of company-owned outlet for possible resale to franchisees |
-At least 50% REM and/or CHM on motor vehicles; and
-Assignment of rights of outlet to be financed |
-At least two profitable years in the franchise business with at least two profitable franchise outlets |
| Establishment of Commissary Hubs |
-70% secured by REM and/or CHM on motor vehicles |
-At least two profitable years in the franchise business with at least two profitable franchise outlets |
| Start-up franchisor |
Systems development of a new franchise |
-70% secured by REM and/or CHM on motor vehicles |
-At least two years profitable experience in the line of business subject for franchise development
-At least two company-owned outlets |
| Supplier of franchisor |
Financing of purchase orders |
- May be clean up to P1.0 M
- At least 25% hard collateral if loan is more than P1.0 M
- MOA between SBC and franchisor on direct payment to SBC |
Supplier – at least two years track record with the franchisor
Franchisor - at least two profitable years and one profitable franchise outlet |
- Minimum Borrower Qualifications
- Filipino-owned enterprise; in the case of corporation, must be at least 60% Filipino-owned
- Asset size not less than P500 Thousand and not more than P100 Million (excluding the value of land)
- Franchisor firm must be a member in good standing of Association of Filipino Franchisers, Inc. (AFFI) or Philippine Franchise Association (PFA)
- For start up franchisee, should be able to finance at least thirty percent (30%) of the cost of the franchise project
- The project to be financed should be projected to meet standard financial ratios, particularly on debt-servicing capability
- For non-start ups, latest BIR-filed net income must be at least P10,000.00
- Project to be financed not into farm-level agri-aqua production, extractive activities or vice-generating operations
- Endorsement Requirement (any one)
- Association of Filipino Franchisers, Inc. (AFFI), or
- Philippine Franchise Association (PFA)
Documentary Requirements
For more information about our products, please contact us |
Retail Lending Program