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BPI Business Loan Procedure

Growing a business is truly challenging as it demands a lump sum amount of money to get the operations going. A business cannot expand unless the business owners have made an investment. In other words, one has to spend money in order to make more money. And one way to invest at the expense of growth is to get a business loan. One of which is provided by one of the country’s oldest banking institutions – BPI.

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Written by: Pig Daddy

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Bank of the Philippine Islands

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BPI Overview 

 

Bank of the Philippines Islands (BPI), as prominent as it is today, has always been a source of pride for the country in the banking industry. BPI’s founding in 1851 constituted a significant milestone in Philippine history as the country’s and Southeast Asia’s first bank.

 

With around 1,176 branches and nearly 3,000 ATMs and CAMs (cash accept machines) positioned not only in the Philippines but also in Hong Kong and Europe, BPI continues to prove its title as the leading provider of financial services in the Philippines – and soon, all over the world. To date, consumer banking and lending, asset management, payments, insurance, securities brokerage and distribution, foreign exchange, leasing, and corporate and investment banking are all services provided by BPI.

 

Business Loans

 

Companies that are working on expanding their current operations or making sure that they are able to meet the day-to-day financial demands of the business resort to taking business loans. This helps business owners take financing from banks and other financial institutions if raising capital is out of the question. 

 

In the Philippines, one of the banks that offer business loans to many businesses no matter their size is the Bank of Philippine Islands (BPI). 

 

BPI Business Loan

 

BPI SME Term Loan 

The BPI SME Term Loan is part of the bank’s effort to assist entrepreneurs in financing their working capital, supplier payments, inventory or equipment acquisitions, capital expenditures, business development, and other business-related activities. 

 

Loan Features 

  • Loanable amount: minimum of ₱300,000 
  • Loan term: up to 5 years
  • Processing fee: ₱3,500
  • Collateral Accepted: 
    • Account Deposit
    • Investment
    • Real Estate Mortgage

 

BPI SME Credit Line 

BPI SME Credit Line facility is designed to support urgent expenditures to cover the borrower’s company’s working capital requirements.

 

Loan Features 

  • Loan Amount: ₱300,000 
  • Credit Line Term: One-year, Renewable
  • Collateral Accepted: 
    • Real Estate Mortgage
    • Account Deposit
    • Investment 
  • Processing Fee: 0.5% of the approved amount 

 

 

Although the BPI business loan offers may thrill borrowers, there are certain things they ought to do first before deciding where and how to spend the loan proceeds – and that is to confirm their eligibility for the loan and complete the required documents, which are listed below:

 

Eligibility 

  1. The borrower must be a Filipino citizen 
  2. Must be at least 21 years old at the time of loan application and no older than 70 years old at the time of loan maturity.
  3. At least two (2) years in present / immediately preceding residence
  4. A minimum of three (3) years of business operations

 

Requirements

For Sole Proprietors and Individuals

  • Duly filled-up application form 
  • DTI Registration / Business Permit
  • Borrower’s Valid ID
  • Spouses ID (if applicable)
  • Bank statement (BPI and/or other banks) for the last 3 months 
  • Income Tax Return over the previous three years

 

For Partnerships and Corporations

  • Duly filled-up application form
  • SEC Registration
  • General Information Sheet
  • Articles of Incorporation/Partnership including amendments (if any)
  • By-Laws including amendments (if any)
  • Photocopy of Valid IDs of majority shareholders/authorized signatories 
  • Bank statement (BPI and/or other banks) for the last 3 months 
  • Income Tax Return over the previous three years
  • Annual Financial Statements for the last 3 years

 

Note that the qualifying criteria as well as the documents listed above apply to both BPI SME Term Loan and SME Credit Line. 

 

BPI Business Loan Procedure 

 

Borrowers interested in applying for BPI Business Loans have three (3) options for applying after meeting the criteria: 

 

  1. Visit any BPI office near them
  2. Call (02) 7918-2000, then press 2 for a BPI Business loan 
  3. Send an email to [email protected]

 

The bank has set up this customer support team specifically for their SME clients so they could get to choose the channel that is most convenient for them to get more information about BPI business loans. 

 

Conclusion  

 

Since money has always been a vital ingredient in the business world, so are the business loans provided by banks such as BPI. Running a business is difficult since it requires investment, let alone keeping money to meet operating expenditures. While taking out a loan may appear risky for business owners, it cannot be argued that loans are a terrific way to fund improvements in one’s business.

Pig Daddy

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