Ways of obtaining Credit or Loan
You already have a business plan of course you wouldn't be obsessed in pursuing a loan/credit if there's none
. But plans are plans. What you need now is an unreasonably optimistic attitude on how to obtain capital or additional money for your business. Below is the different way in obtaining loan/credit its advantages and disadvantages.
Obtaining Credit/Loan from your friends, relatives
Having a loan or credit to a friends or relatives that willing to help or lend you has a great advantages, one is you can acquire it with minimal interest or none at all, two easy to acquire what you need is just a little word of mouth conversations or sometimes an informal contract. Likewise, disadvantages is inevitable because If you're going to borrow money from your friends or relative is that, even your already done paying that loan "utang na loob" is still there and sometimes when you're not in good terms with them, they're the one keep on bugging you or to other person something like "If not because of me his nothing but now his so proud", You may not have a disgust to you're friends or relatives but this is common filipino attitudes. and lastly but less effect on you if you are really motivated is the less motivation on your part to earn more since a friend or relative would not imposed a big interest.
Obtaining Loan from Banks
Bank loans are for different types of purpose. For short term or long term needs. For working capital, fixed asset acquisition, etc. It is common that loan applications for start up businesses are often denied. Why? Because there is no record yet that will be served as a benchmark for credit investigator and assessor. The collateral is just a fall back; for worst case scenario. Banks are not after the property. They lent money, they want the money back with interest. If foreclosure comes, there's the one year redemption period before the banks can dispose off the property. Banks usually don't want to be saddled with non-performing asset. If you can't pay the loan , the bank may give you an extension, they restructure the loan so the foreclosure would not come.
Obtaining Loan from a Cooperative
Try the cooperatives in your area. In obtaining loan from a cooperative herewith is a sample pre requirement before you would able to acquire a loan.
Completion of Pre-Membership Seminar (PMES)
Must be in active service and a member of the Coop for at least thirty (30) days
Must not be retirable employee within the term of the loan
Must have unexpended leave credits of at least 30 days for regular, casual, contractual employees while member/s on a Contract of Services status must have a salary trust fund of 22 days.
Certified true copy of the latest payslip with at least P3,000.00 net
Certified true copy of the employee's appointment, or Certificate of Employment for member/s with a Contract of Services status.
Member/borrower has no pending administrative or criminal case
The maximum limit will also depend on your capacity to pay, if you're already a long time member and in good standing, and the salary you have been receiving for the past few years.
*Note this is only a sample some cooperative would need additional requirements for you to be eligible in applying a loan.
Obtaining Loan from a Loan Shark
The advantages in acquiring from a loan shark is you are motivated to earn more as a debtor because of big interest. And much more it was easy to acquire.
Common Filipino people are usually the victim of these kind of activity, Why? because you can't get a loan if you don't have proper documents and what do you do? go to the loan sharks. They release cash easily but not without a price. Having no enough micro-financing programs offered by the government is the bigger problems a would be Entrepreneur are facing. Why again? the government is busy with their inter-department accusations, but last not the least is the wrong or inappropriate lending policies. You can try it yourself, try to apply for a credit card w/o an ITR, chances are , you cannot qualify even if you are a good payer
Sadly, the loan sharks take advantage of the need, as they say - "negosyo lang,walang personalan" nothing personal just business.
Ways of obtaining Credit or Loan
By: jaime menor jr
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