Turn your business expansion plans into reality

MANILA, Philippines - Nowadays, you’d find many Filipino families venturing into a small business.

Clearly, many Filipinos have been swept by an entrepreneurial spirit, buoyed by success stories of people who started from scratch but became successful because of sheer hard work, determination and business-savvy skills.

In today’s family set-up, you would find a husband working in the office while the wife takes care of both the household and their business.

They believe that maintaining a micro-business is a practical and a great way to augment the family income.

Whether managing a mom and pop store, a food stall, a carinderia or a neighbourhood Internet shop, count on many enterprising couples to split the work and share the burden to maintain their business.

Sometimes, they don’t expect that their negosyos would become big and would one day need some expansion.

Take for instance, the case of  Tet Malabonga, who opened a small Internet shop in their house to help generate an extra income for the family.

In the beginning, it was just three computers, few chairs, tables and a trickle of customers coming in.

But as day goes by, customers are already coming in droves, mostly children and young people who are patiently waiting for their turn.

That’s when she thought it was high time to expand her growing business.

“The customers are actually requesting for more computers, for more space. So I thought I really need to scale up,” she said.

Tet felt encouraged by the boom and also thought of creative ideas to pump more revenues into her Internet shop like buying a coffee maker equipment ala Starbucks to sell to her customers while they are busy on the net.

“I feel very optimistic. When you have a small business, you will become confident that it will grow,” she said.

But much as she wanted to expand her business, she doesn’t have enough cash at her disposal.

And then Tet considers taking out a loan.

As someone who puts a premium on the value of paying a debt, she said she would be able to pay the loan anyway because her husband will receive a hefty commission in three-months time.

What’s important for her is not to pass up the opportunity to grow her business.

There are a lot of banks out there that are ready to give out a loan, yes, but it takes forever for them to grant these loans, Tet said. 

“I need to expand my business now before a competition a similar business and I will lose the opportunity to cater to more customers,” she said.

Thanks to Citibank Savings, Tet doesn’t have to wait nor choose from an slew of different banks who might offer the same deals but will take months to process.

With the bank’s Citi Personal Loan, she can now expand her business without hesitation and hindrances.

“All it takes is two hours to achieve your dream for a business expansion,” said Citibank Savings president Tonet Itchon. 

A leader in innovation for financial products and services, Citibank Savings designed a personal loan geared at empowering its customers with ready cash in as fast as two hours whether for business expansion, education, house renovation and travelling with family and friends.

“The Citi Personal Loan is designed to meet whatever financial need our clients’ may have – not necessarily for emergencies. We found that many use it to enrich their lives, by travelling with their friends, and family, or fixing up their homes, even expanding their small businesses,” Itchon said.

Citibank Savings allows clients to easily get a cash loan which they can pay at pocket-friendly monthly instalments.

“Our personal loan goes beyond meeting emergency cash needs but also enriches the lives of our borrowers by helping them realize their dreams today,” Itchon said, adding that “our product can give clients the right push to grab opportunities in life otherwise.

Launched in July last year, Citibank’s two-hour turnaround loan is a multipurpose loan that doesn’t need collateral and a co-maker.

Prospective borrowers can loan from as low as P25,000 to as much as P2 million and has a flexible monthly instalments from 12,18,24,36 and 48 months.

Plus, it has a super fast processing time- cash in two hours when you submit complete documents.

Typically, clients are 21 to 65 years old, employed executives of private companies with an annual gross income of at least 250,000 and who always look for the best deal, best value in any transaction.  

A stable business

According to Ichon, majority of the loans taken out by their clients are for purposes to expand their business.

Loans for business expansion can be attributed to the growing number of entrepreneurial families in the country, typically with the husband employed in the office and the wife managing the small family business.

“They’re employed but they have something on the side, either the spouse or a trusted relative manages the business,” he said.

Itchon stressed the importance of financial management when taking out a loan for business expansion purposes.

“As a responsible lender, we integrated financial planning as part of loan process. When the applicant passes credit evaluation, our personal bankers sit down with them for a financial check-up and together, they discuss the monthly amortization that best fits the clients’ budget,” Itchon said

This way, financial managers are also able to inculcate to clients the value of paying their debts.

“You need to understand what you are borrowing for.  You need to analyze the decision to borrow for business expansion. You think about the risks, of what is practical and manageable, all of this comes into the picture when we discuss the loan,” Itchon said.

The Citi Personal Loan is also ideal for entrepreneurs who doesn’t want to use up their earnings or capital to expand their business and would like to loan first. This includes plans to move operations to a larger location, open up additional offices or buy new equipment or raw material. For as long as they submit the complete requirements, they can get their loans in two hours, Itchon reiterated.

What’s more, with the Citi Personal Loan, you can enjoy a rate for as low as 1.26 percent monthly add-on rate on a 24-hour tenor, equivalent to 26.9 percent effective interest rate.