April 03, 2015 | Sharon Cheong
If you've been thinking about starting your own small business in the Philippines, then you have no doubt checked into financing options. This is traditionally one of the first hurdles that entrepreneurs must overcome. Depending upon your business concept, it can be challenging to get the necessary funding for a new start up. Most experts agree that new entrepreneurs should start small.
Sometimes entrepreneurs are very eager to get their business going, but they simply don't have access to conventional financing. The reasons can vary and include lack of collateral, lack of experience or poor credit. In these cases it is sometimes necessary to dig into personal savings or mortgage your home in order to get the venture capital necessary. But there are many other ways to get funding.
Of course, some business types will be easier to obtain funding for. For instance, technology and high tech gadgets are selling well globally. This industry has a lot of players in it, but there is always room for more. Investors are on the lookout for that next big thing in smart phones, tablet computers, and other electronics. The Philippines are home to many high-tech businesses and manufacturing products here has become lucrative due to the vast pool of cheap labor.
The Philippines offer a number of viable financing options such as formal lending institutions, Micro-Finance Institutions (MFI's) and cooperatives. BDO Unibank offers personal and commercial loans, but they do want all the traditional paperwork, credit worthiness and other requirements.
The Livelihood Development Program for Overseas Filipino Workers (LDPO) is a joint venture that provides financial services to entrepreneurs. An OFW (Overseas Filipino Worker) or family member may qualify for financial assistance. The maximum loan amount and interest rate are determined by variables such as business type, collateral amount, and whether it's an individual or group of investors.
Many other private and government programs exist, such as the Social Security System (SSS), which has a special financing program in Quezon City. The People's Credit Finance Corporation located in Makati City advertises direct lending for individual borrowers. In most cases, retail lending is done through partner microfinance institutions.
Without solid collateral, it may be necessary to look for funding in unusual places such as through family and friends. Though many would-be entrepreneurs take this route, experts recommend making sure that the contracts and paperwork are thoroughly and legally executed to prevent any future misunderstandings.
Serviced Offices in the Philippines
Though building your own business takes hard work, vigilance and determination, those who stay true to their vision can become successful. Look for ways to minimize startup costs. For instance, lease your building space in an inexpensive area. If you need an upscale office for meetings, then leasing a serviced office can be a great idea. Servcorp Serviced Offices offer prime space in prestigious locations in Manila. Our offices in Tower One Ayala Triangle are right in the center of corporate and financial activities in the Philippines. You can enjoy having a downtown address, mail service, phone service, high-speed internet and many other amenities. Our offices at 6750 Ayala Avenue offer the best views of Manila's skyline and the stunning reception area will certainly impress your clients. All our serviced offices are elegantly furnished with highly trained personnel who will be at your service when you need them. Please call us to learn more.