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Access of Small Enterprises to Sound Lending Opportunities (ASENSO)

Lending Features of Long-Term Loans

Loan Purpose
1) Purchase of equipment
2) Building Construction
3) Purchase of Lot
4) Purchase of Inventories- Permanent Working Capital
Target Industries
All industries except:
a) Trading of imported goods, of liquor and cigarettes; and
b) Extractive industries
Eligible Enterprises
At least 60% Filipino-owned whose assets are not more than P100 Million, excluding the value of the land, or subject to ownership rules as defined under existing Philippine laws for specific industries
Maximum Financing
- 80% of the incremental project cost
- maximum of P5.0 Million
Interest Rate
SULONG Lending rate repriced quarterly by the SULONG Finance Committeee
Repayment Term
Maximum of five (5) years, inclusive of maximum one (1) year grace period on principal monthly amortization
Collateral
- Post-dated check
- Registered/Unregistered
REM/CHM
- Assignment of life insurance
- Corporate Guarantee (if franchisee)
- Assignment of lease rights (if franchisee)
Evaluation and Service Fee
P2,000 for every P1.0Million plus front-end fee of 1/2 of 1% of approved loan and commitment fee of 0.125% of unavailed balance
Financial Profile of the Borrower

 
Debt to Equity Ratio
- At most 80:20 after the loan
- At most 70:30 (if franchisee)
Profitability
Positive income for last year (if past year's income is negative, the average income of past 2 or 3 years should be positive)
Other Ratios
Based on industry standards
 

Lending Features of Short-Term Loans Lending Features of Long-Term Loans

 

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