PNB to extend franchise loans

PNB to extend franchise loans

LUCIO C. Tan-led Philippine National Bank (PNB) will begin extending "PNB Kabuhayan Loans" to individuals starting their own businesses via the franchising route.
The franchise loans, PNB said in a statement on Friday, show the bank’s "commitment to support the Filipino small and medium enterprises (SMEs)."

"Offering the loan would allow the bank to capitalize on the growing demand for funding of franchise businesses," the bank added.

A requirement for individuals tapping the franchise loans is the franchisor must be a member of the Philippine Franchise Association (PFA) and the Association of Filipino Franchisers, Inc. (AFFI).

PFA members include Aficionado Germany Perfume, HBC Home of Beauty Exclusives, The Generics Pharmacy and Philippine Seven Corp. AFFI members, meanwhile, include Aquabest, Brothers Burger, Figaro Coffee Company, Reyes Haircutters and SEAOIL Philippines, Inc., among others.

A Kabuhayan loan ranges from P500,000 to P10 million; it is payable up to five years.

Borrowers can avail of a fixed rate of 8% for a one-year term loan, 8.5% for a two-year loan, 9% for a three-year loan, 9.5% for a four-year loan and 10% for a five-year loan.

PNB can lend as much as 75% of the capital needed for a franchise. PFA and AFFI will evaluate the amount needed by a franchisee for his or her business.

Individuals, however, must present to PNB a guarantee before they will be lent the money. The loan amount will depend on the collateral.

This is the first time that PNB will offer loans tailored to the franchise business.

It was preceded by BPI Family Savings Bank, the thrift banking arm of the Bank of the Philippine Islands (BPI), which began extending "Ka-Negosyo Franchising Loans" in February after striking a partnership with AFFI and PFA

PNB shares closed at P59.05 apiece on Friday, up slightly from P59 apiece a day earlier. -- ARRG

--
---------------------------------------------
CARLOS ANI - SEEDFINANCE Corporation - http://www.seedfinance.net
Email: carlosani@seedfinance.net
Landline: +63495010127 Cellphone: +639152919580
DEVJOBS - http://www.devjobsmail.com
PHILDEVFINANCE - http://phildevfinance.posterous.com http://phildevfinance.wordpress.com
CONSULTING - http://www.carlosani.com
My Clippings - http://www.myclipps.posterous.com
------------------------------------------