BPI Family offers franchising loan

MANILA, Philippines - BPI Family Savings Bank and food specialist Binalot has forged a new partnership through the thrift bank’s Ka-Negosyo Franchising Loan Program.

The financing scheme aims to fuel the growth of the franchising industry through affordable franchise financing for individuals who want to start a franchise.

The Ka-Negosyo loan program is available in two variants: Ka-Negosyo Lite Mode and Ka-Negosyo Zero Collateral Program.

Under both loan schemes, a franchisee may borrow between P500,000 to P1.8 million to partially finance acquisition of a franchise package and pre-operating overhead cost.

In the Ka-Negosyo Lite Mode loan package, a franchisee may borrow the 60 percent of the total franchise package and pre-operating overhead cost payable within a maximum of five years, with annual re-pricing based on prevailing market value with indicative interest rate of 9.25 percent per annum with real estate property serving as collateral.

The Ka-Negosyo Zero collateral loan package meanwhile offers the same 60 percent of the total franchise package and pre-operating overhead cost payable within a maximum of three years with 10-percent to 14-percent interest rate without the need of collateral.

BPI vice president Ma. Mercedes R. Roces said that the thrift bank of the Bank of the Philippine Islands (BPI) wants to make it easy for potential franchisees to open a franchise.

“We just recently launched the Ka-Negosyo Best List - which is our growing list of accredited franchise brands. We’ve narrowed down the choices for the market and we make it even easier by making the financing component lighter on the pocket. A no-collateral franchising loan is available for those who will apply for a Ka-Negosyo best list brand,” Roces added.

New franchisees are invited to take advantage of the loan provided they have at least two years of gainful employment with no negative findings on the firm and principals.

Existing Binalot franchisees can also avail of the program, if they have a minimum three years profitable business operations and must meet the bank’s acceptable gross monthly income ratio (GMIR) in relation to the projected monthly amortization and a minimum assets of P15 million, excluding land.