Overview of Land Bank
Land Bank of the Philippines, commonly known as LANDBANK, is among the few trusted financial institutions in the country that provides Filipinos wide access to reliable, secured, and affordable financial products and services.
The bank not only offers banking services but also gives its customers different types of loans for multiple purposes. Among these loans are Business Loans tailored to address the financial needs of many existing entrepreneurs and future business owners.
Loans for Businesses
There are various types of Business Loans granted to entrepreneurs or aspiring ones, especially those with Medium, Small, and Micro Enterprises. Here are some of the Business Loans by Land Bank:
Term Loan Facility
A Term Loan Facility is a Business Loan facility that allows eligible individuals to borrow a lump sum of cash under certain terms and conditions. The loan proceeds are typically used to expand one’s business, purchase machinery, equipment, and fixed assets, and fund permanent working capital. It also covers other business expenditures, including expenses in launching business projects such as Agri-business, Manufacturing, Trading, and Services.
Working Capital and Liquidity Facilities
LANDBANK offers Working Capital and Liquidity Facilities as a financial avenue to help entrepreneurs sustain their daily business operations. This loan includes the Short Term Loan Line, which provides borrowers an amount to help them procure raw materials or finished goods inventories.
It also has an Import or Domestic Letter of Credit or Trust Receipt Line which helps borrowers pay for the goods imported from local or offshore suppliers and a Domestic Standby Letter of Credit Line which helps borrowers maintain their purchase or service from local suppliers. Domestic Bills Purchase Line enables borrowers to purchase checks for immediate credit to deposit accounts while skipping the clearing period.
Exporters Production Support Facilities
These loan facilities include the Export Packing Credit Line and Export Bills Purchase Line, which significantly contribute to the overall business operations of borrowers.
Export Packing Credit Line specifically helps in purchasing materials or paying for the workforce’s labor in manufacturing their business goods ready to export. It also finances the pre-shipment working capital requirements of the business. Meanwhile, the Export Bills Purchase Line helps in post-shipment and supports liquidity for exporters before the clearing of bank drafts or notes.
Farm Tourism Financing Program
It’s an exclusive program to help farm tourism operators improve farm tourism camps and other activities through financing. It is used for fixed asset acquisition or construction, production loan, working capital, and permanent working capital, which could benefit farm tourism recreational activities and programs valuable to educate and stimulate tourists’ interests.
OFW Reintegration Program (OFW-RP)
This program was introduced in partnership with the Land Bank and the Overseas Workers Welfare Administration (OWWA) to be granted to eligible Overseas Filipino Workers (OFWs). It is designed to provide OFWs instant cash to start up their business as an alternative to their employment abroad. Applicants of this loan program must be a duly certified OWWA member to get the minimum loanable amount of ₱100,000 up to ₱2 million for a single proprietorship and up to ₱5 million for a group of OFWs such as in partnership, cooperatives, or corporations.
Innovation and Technology (I-TECH) Lending Program
It is a financial program launched in partnership between the Land Bank and the Technology Application and Promotion Institute (TAPI), which paves the way for the commercial production of Filipino inventions involving technology. It covers expenses necessary to produce innovative technology that reduces environmental problems, addresses lack of agricultural and industrial unproductivity, conserves, saves, or substitutes fossil fuels, and many more.
I-Rescue Bus Lending Program
Due to the financial woes brought by the pandemic, this loan program started to help affected individuals by providing them with cash to purchase a modern Public Utility Bus (PUB). Applicants of this program must meet its criteria which include being a Public transport cooperatives or corporations member of the consortium selected for the Metro Manila Bus Modernization Program.
Speed PUV Loan Program
This loan program works by financing eligible Public Transport Cooperatives or Corporations to purchase Public Utility Vehicles (PUVs). These cooperatives or corporations shall have approved routes under the LTFRB Omnibus Franchising Guidelines (OFG) and must present collateral along with other documentary requirements to qualify for this loan.
PFI-ACCORD
PFI-ACCORD is the short-term for Partner Financial Institutions-Additional Credit for Countryside Outreach and Rural Development, which serves as another lending program intended to provide eligible borrowers a short-term working capital. In particular, borrowers must be part of the PFIs with a satisfactory credit status in the Land Bank. These include Cooperatives, Rural Banks, Cooperative Banks, Thrift Banks, and Microfinance Organizations (MFOs).
Lending Program for Former Rebels
From the term itself, this financial program is particularly offered among former members of rebel groups such as the Communist Party of the Philippines (CPP), New People’s Army (NPA), and National Democratic Front (NDF). This program allows them to borrow cash as working capital to build their business. They may borrow at least ₱25,000 and a maximum of ₱100,000 with loan terms ranging from one (1) to five (5) years.
Franchising Lending Program
This is a lending agreement in which eligible borrowers are granted credit assistance and provided access to cash for construction, expansion, and renovation of offices, warehouses, etc. The loan proceeds may also be used to purchase franchise investment packages or pay franchise renewal fees. Applicants must be a member duly registered with good standing in an existing franchisor or franchise association.
Conclusion
While Business Loans might demand you to go through a complex application process, it’s undeniable that it highly contributes to operating your business. It provides you with working capital or funds to finance the renovation, expansion, or procurement of equipment necessary for your business.
Business Loans also ensure that your business is not a step away from bankruptcy. Thus, Business Loans, especially in Land Bank, are indeed a great financial solution to help you build your dream company.
Aunt Piggyy
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