Is it a good idea to loan from a bank for business?

[theSLASHER]

kung wala kang puhunan, pero gusto mong mag business, ok ba na umutang sa bangko? why yes, why not?

(moderators, if there's a thread like this already, please do what's appropriate) :D

[ichi]

yes as long as youre sure that your business will be able to earn before the loan matures. if this is not the case, then no.

Once you get the loan, try to think of a way to make use of the loan as an advantage instead of a burden. This step will do wonders for your company for the long-term....

oh...another thing, try to look at the interest rates, some banks can adjust their interest rates depending on the person/company that is borrowing...

good luck to you! :D

[theSLASHER]

can you advise me of the steps to take and the requirements. what is the maximun amount that a bank could lend?

[ichi]

The maximum limit will only depend on your capacity to pay, if youre an employee, they will most probably check your income tax returns and the salary you have been recieving for the past few years...

Having a good credit standing does help if its your first time to get a loan but as far as I know, banks are not strict expecially if there is a collateral (properties).

As for the steps, I really dont know since the loan requests i present to banks go directly to the person's i know and its mostly through proposals.

Sorry cant help you that much on the steps.

[Dudess]

Mahirap umutang sa bangko kung start-up ang negosyo kahit meron pang collateral na mai-o-offer. Kasama sa criteria ang profitable operations for the past 3 years.

Hihingin ang company profile, DTI business name registration, mayor's permit, last 3 years' ITR and financial statements, past 6 months' bank statements or passbook entries, and list of major suppliers and customers. Kung real estate property ang collateral -- copy of the TCT, tax declaration, location plan with vicinity map.

Hindi ko alam kung saan pwedeng mag-character loan. Yung wala nang gaanong requirements basta sangla lang ng property. Sa rural banks siguro, finance companies or private financiers na pamatay ang interest rates and other charges.

[theSLASHER]

hmmm ang tindi naman pala.

[jazzy]

There are several organizations and govt agencies that can help you like quadencor. Try to research on biz mags and books. I believe they charge lower than banks.

Id rather borrow from this or from family members than banks.

[ichi]

how about microfinancing insitutions?...hahaha pero they do work... you wont be able to get that much money though...

[Shokosugi]

suggestion ko is to structure yor financing to have a mix of both equity (partners) and debt (loan) financing.

depending sa projected revenue, expenses, loan amount, interest rates, etc. na gusto mo.... malalaman mo kung how much equity and debt financing to get (kaya mo ba bayaran yung utang mo sa banko based on your projected monthly revenue? may profit ka pa ba?) if not you may want to ask your partners to increase their investment (or get more people to invest in your business) to decrease debt. ofcourse hati kayo ng mga partners mo sa profits. :-)

[paulgilbert80]

pag small business lang ok na yung sa cooperatives

[theSLASHER]

magkano ba *** limit sa mga cooperatives?

siguro utang nalang ako sa mga kamag-anak...:D

[pat0t0t]

GOOD THING, if you have a kamag-anak that willing to help and can lend you and after you pay for that loan... TAPOS na.

WORST THING, if you're gonna borrow money to your kamag-anak 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 "uy, alam mo if that thru with my help wala naman yan pero ngayon look ang YABANG na". I dont have a disgust to my "kamag-anaks" but this is what i've observed as filipino attitudes.

I have a suggestion if you really interested to start your own business. I noticed also that your from central luzon. Why dont you try to inquire regarding your concerns at LANDBANK? I didnt endorse that bank for the purpose that I can have a comission there. I just wanna help you with your plan. I used to work before there as system consultant and I noticed that it was their focused to develop SMALL and MEDIUM enterprise especially on the rural areas and provinces. I think if you discussed to them your concerns and they think it has a potential too, I dont see an point that they will decline your objectives.

GOOD LUCK!

[theSLASHER]

hmmm, oo nga, ayoko rin sa kamag anak kasi dami na akong utang na loob sa kanila. . .

thanks sa suggestion mo pat0t0t. i'll try sa land bank.

napapansin ko, karamihan sa mgatinatanong kong kaibigan takot mangutang sa banko. is it just a pilipino attitude or dangerous talaga?

[freakster2k1]

wag, borrow ka sa loan shark. hehe.

[theSLASHER]

ei freakster, nagpupunta ka rin pala dito sa section na to,kala ko ROT ka lang :D

ano ba *** loan shark?

[Dudess]

Loan sharks -- 5/6.

Marami kasing requirements sa bangko kaya kadalasan, nadi-discourage agad ang mga loan applicants. Lalo na pagdating sa financial records. Kailangan kasi ma-convince ang creditor na viable ang negosyo, competent ang management, at maibabalik ang inutang sa takdang panahon.

I agree na hindi advisable umutang sa relatives. Kung short term need, ok lang. Pero sa negosyo, mahirap. Baka bigla kang singilin, hindi mo naman agad-agad maibabalik ang pera na pinaiikot mo pa. Yes, try the cooperatives in your area. Try mo rin yung Small Business Corp. It's a government institution. Maximum loan limit nila is P1 Million. Sa may Valero St., Makati ang office.

[theSLASHER]

is there anyone of you who actually tried loaning to start a business and become successful?

[Adroth]

Originally posted by theSLASHER
kung wala kang puhunan, pero gusto mong mag business, ok ba na umutang sa bangko? why yes, why not?

(moderators, if there's a thread like this already, please do what's appropriate) :D

There are number of factors to think about:

- Do you come from a business family with established credit relationships?

- Do you have documented experience managing someone else's business?

- Do you already have an existing business and are just trying to start another business?

If the answer to the above questions is NO. Then you'll probably have problems getting a loan. Here's a rule of thumb: The fastest way to get turned down for a loan is to apply for one.

Try going through informal or small-scale lending sources first (e.g. friends, rural banks, etc.). Once you have a track record (and manage to have people talk about you), the banks will come to you. If your successful enough, they'll come to you with the loan pre-approved.

[Adroth]

Originally posted by theSLASHER
is there anyone of you who actually tried loaning to start a business and become successful?

I used to be a credit investigator, and saw lots of people start business on credit. A lot of them became very successful.

The question is: what was the original source of credit? A lot of them started with loans from friends, family, small banks, or "community elders" (translated: established businessmen in the Chinese community).

[Japorms09]

Originally posted by Adroth
I used to be a credit investigator, and saw lots of people start business on credit. A lot of them became very successful.

The question is: what was the original source of credit? A lot of them started with loans from friends, family, small banks, or "community elders" (translated: established businessmen in the Chinese community).

I dont think that community elders will suit you, this concept is from china and taiwan, and they imposed a big interest to motivate a debtor, I'm just not familiar how it works here in the philippines.

Mostly, try to make a business plan first before thinking where to get the capital.

[honeybee17]

There is already a plan of course or i wouldn't be obsessed in pursuing it if there's none.

But plans are plans. Or perhaps only an unreasonably optimistic attitude if there is such.

Someone advised me that bank loaning is just for expansion and not for starting a business. what do you guys think?

[theSLASHER]

hmm, i didn't notice that im using my cousin's account!!!

that's me who posted up there. :D

[Dudess]

Bank loans are for different types of purpose. For short term or long term needs. For working capital, fixed asset acquisition, etc. In my several years of experience as a loans officer in the banking industry, loan applications for start up businesses are often denied. Bakit? Wala pang track record eh. Hindi natin alam kung bukas nandyan pa yan. Kung magsara agad, pa'no na babayaran ang utang? 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. Pag nag-foreclose, there's the one year redemption period before the banks can dispose off the property. They don't want to be saddled with non-performing asset. Pag hindi makabayad ang loan client, banks give extension, they restructure the loan para hindi na dumating sa foreclosure.

I think it would be better if you actually speak to the bank officers in your area so you can get a sound advice regarding your business plans. You would know then if you would qualify or not for a loan. Iba kasi ang approach ng depende sa type ng bangko -- rural / savings / commercial / expanded commercial. There you can present to them your proposal. We don't know what type of business you want to venture in; How much equity you're willing to put up; Your technical expertise or background in this type of business; etc. Ring them up. Take action. A business is 24/7 so you can't spend much time here.

[Adroth]

Originally posted by honeybee17 Someone advised me that bank loaning is just for expansion and not for starting a business. what do you guys think? [/B]

More banks will offer you money if you have an existing business, and have proven that you know how to run it. Business expansions are less risky.

However some small or development banks will take a chance and provide start up capital. The loan, however, will very likely have to be fully secured (meaning you already have the amount that you needed to begin with), and you won't very likely be charged an arm and a leg in interest.

[theSLASHER]

That was really helpful dudess! Thank you!

Oh well, i think i'll be denied most probably kasi bata pa ako. walang track record. may trabaho naman, pero walang ipon.

But my businessplan seems so good to me and my friends (with their survey). Perhaps i should really inquire to bank officers.