A new financing program for franchising businesses will be launched this month through the Department of Trade and Industry’s (DTI) financing arm Small Business Corporation (SBCorp).
This, as the DTI, SBCorp and the Philippine Franchise Association (PFA) signed a memorandum of agreement (MOA) in Makati City Tuesday to promote micro, small and medium enterprise (MSME) development through franchising.
Part of the agreement is extending a loan program through SBCorp for those who would like to venture into franchising business, especially those over 200 franchise brands under the PFA.
During the press conference, PFA chair Sam Christopher Lim said the MOA also aims to provide skills training, especially to overseas Filipino workers and their families, on franchising; linking to suppliers; and promoting Filipino franchise brands in the global market.
DTI Acting Secretary Ma. Cristina Roque said franchising business aligns with the directive of President Ferdinand R. Marcos Jr. to create more jobs for Filipinos.
“What President BBM (Bongbong Marcos) wants to happen is for us to be able to provide jobs, and the fastest way for us to be able to provide jobs is to grow the existing business,” Roque said, noting this is what the business model of franchising promotes.
Roque added her agency is also looking into partnering with the Department of Migrant Workers (DMW) to promote franchising business among OFWs.
“We have to understand, there’s USD40 billion of remittances from the OFWs that are coming in every year. So most of them, they don’t know where to put the money,” she said.
“The only way is to offer different business opportunities or to offer different opportunities for the Filipino people… and one of them is to go franchise.”
SBCorp President Robert Bastillo said that under the general loan facility of the agency, a first-time borrower who would like to start a business can start with a minimum loan of PHP30,000 collateral-free.
A repeat borrower with good credit standing can also tap SBCorp for a loan of as much as PHP5 million.
SBCorp also offers low interest rate of 1 percent per month based on a diminishing balance.
Bastillo said that by the time of the new financing facility, SBCorp targets at least 50 franchisee-borrowers, which loan applications can be approved within the day. (PNA)
