| RETAIL LENDING PROGRAM > SME FRIEND
SME-FRIEND
Financing Reach for Exporters thru Network Development
Program Description
A short-term credit facility of Small Business Corporation for exporters that are members of industry associations. The object of credit is the exporter’s purchase order from its foreign buyer. It aims to help MSME-exporters that require additional working capital for bridge financing or for simply seizing a business opportunity.
| Type of Facility |
- Transactional
- Export Packing Credit Line
- Standby Credit Line (for CITEM exhibitors)
|
| Loan Amount |
- Minimum of P200,000
- Maximum of P8 Million
- Up to 70% of the face value of export LC/PO
- Initially up to P2 Million credit line if covered by export Letter of Credit (LC)
- Initially up to P1 Million if standby credit line
|
| Purpose of Loan |
Financing of:
- Export Letter of Credit (LC)
- Export PO issued by a FOBAP member foreign buyer
- Export PO issued by a non-FOBAP member foreign buyer with whom the exporter had at least three completed export orders
|
| Repayment Term |
- Maximum of 180 days term per drawdown
- Based on LC/PO expiry date, with allowance for the collection period
|
| Term and Line Expiry |
One year from date of approval, subject to renewal of the credit line |
| Collateral Cover |
- Real Estate Mortgage or Chattel Mortgage on motor vehicle
- May be clean up to P2 Million, if loan is covered by export LC
|
- 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)
- May be start up exporter but at least one year track record in domestic market operations
- Positive BIR-filed net income for the past immediate year
- Project to be financed not into farm-level agri-aqua production, extractive activities or vice-generating operations
- Must have the following capabilities, as certified by the endorsing industry association:
- Proven track record for good quality and timely export deliveries
- Right kind and size of facilities, equipment, technology and manpower to complete the export orders to be financed
- No potential or existing labor problem that may interfere with the export business
- Endorsement Requirement (any one)
- Foreign Buyers Association of the Philippines (FOBAP)
- Center for Int’l Trade Expositions and Missions (CITEM)
- Philippine Exporters Confederation Inc. (PHILEXPORT) – for Visayas and Mindanao exporters
Documentary Requirements
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Retail Lending Program