RETAIL LENDING PROGRAM > Working Capital Financing > Short-Term
TRANSACTIONAL WORKING CAPITAL LOANS
Credit Line for Financing of
Receivables and Purchase Orders
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 foreign buyers and domestic anchor firms resulting from long receivables turn-around time.
- Facilities
- Transactional Loan – a credit line facility for MSME suppliers where the subject of financing is the purchase order (PO) and/or the receivable.
- Check Rediscounting Loan– a variant of the Transactional Loan facility intended to assist MSME suppliers of domestic firms which need not be among the top-2000, but who have issued post-dated checks (PDCs) to cover the transaction.
- Minimum Borrower Qualification
- Must be a Filipino-owned enterprise; in the case of corporation, must be at least 60% Filipino-owned.
- Asset Size
- Transactional Loan – At least P500 Thousand and not more than P100 Million, excluding the value of land.
- Check Rediscounting Loan – At least P1.0 Million and not more than P100 Million, excluding the value of land.
- Business Track Record
- Transactional Loan – At least one year positive business track record; may be less than one year if financing of receivables; and at least two years if financing of purchase order (PO).
- Check Rediscounting Loan - At least two years positive business track record.
- The MSME industry involved should not be among the following exclusionary list of SBC:
- Farm-level crop or livestock production (post-harvest operations are qualified)
- Real estate development (SME contractors are qualified)
- Pure traders of imported goods
- Engaged in vice-generating operations
- Must have a Borrower Risk Rating of “5” or better per SBC evaluation
- Other Criteria under Check Rediscounting Loan:
- The buyer/issuer of check must be a business entity without negative track record; and
- The borrower must have been a supplier of the issuer of check for at least one year.
- Product Features
Type of Facility |
One-year Credit Line or Case-to-Case |
Purpose of Loan |
Financing of receivables and/or purchase orders (POs) from:
- Foreign buyers
- Top-2000 domestic anchor firms (may not be among top-2000 but have issued post-dated checks to cover the transaction, if under Check Rediscounting)
- Industry anchor firms
- Franchisor firms
- Government corporations/line agencies
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Loan Amount |
- Minimum of P200,000
- Up to 80% of receivables
- Up to 60% of POs, including export LCs
- Up to P8 Million for borrowers with SBC track record
- Up to P2 Million if new borrower (may be higher in meritorious cases)
- Up to P1.0 Million if stand-by export credit line
In case of Check Rediscounting,
- Up to 90% of face value of PDC, as long as interest due can still be covered
- Up to P1 Million credit line
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Repayment Term |
- Up to 120 days term in case of receivables, but not to exceed the actual payment date of buyer
- Up to 180 days term in case of PO, but not to exceed the actual payment date of buyer
- Up to the date of the assigned PDC which should not be more than 120 days from date of loan release date
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Collateral Requirement |
Assignment of receivables and/or PO and PDCs |
For more information about our products, please contact us:
Small Business Corporation
Development Finance Group
Telephone No. 751-1888
or at any SBC office nearest you.
(Link to SBC area offices directory)
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Retail Lending Program