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Business Financing: Philippine Export-Import Credit Agency (PhilEXIM) Financing Programs

If you are an SME engage in exporting and/or importing and you want to avail of additional capital then you can apply for financing through the Philippine Export-Import Credit Agency (PhilEXIM) Financing Programs.

There are 2 types of Lending Program for SMEs: (1) Short-Term Direct Lending Program, and (2) Medium to Long Term Direct Lending Program for SMEs.  Both of these programs are given to persons or entities licensed to engage in export-oriented activities, as well as in activities which, in the determination of TIDCORP, promote and develop the capital goals and import-substitution industries.

SME-Financing-Programs-PhilEXIM(2)

Short-Term Direct Lending Program for SMEs.

Program Features

  1. Direct exporters with a minimum export volume of US$100,000 within the last six months prior to application and have a profitable operation for the last 2 years.
  2. Indirect exporters who are indirectly exporting in the immediately preceding year; and profitable operation for the last 2 years.

Types of Credit Accomodation.  Transactional and/or Revolving Line

  • Tenor:  180 days PN extendible provided that shipment date and/or expiry of LC/CPO is extended but not beyond 360 days.
  • Loan Limit:  The loan limit is 80% of the value of the L/C, CPO, CSC and/or export bills provided maximum amount will not exceed P20M.  For indirect exporters, 80% of the value of the receivable from the exporter provided that maxomum amount will not exceed P20M.
  • Financial Position:  Maximum debt to equity ratio at 4:1 after financing and an increasing trend in ROA and ROE.
  • Collateral:  REM/CHM and/or other acceptable collateral.
  • Application Fee:  P10,000 plus GRT payable upfront upon application, non-refundable.
  • Processing Fee:  1/4 of 1% of approved loan amount plus GRT which may be deducted from the loan proceeds.
  • Interest Rate:  Applicable PDST-F rate plus spread.
  • Out of Pocket Expenses:  For account of client as billed.
  • Taxes:  Applicable taxes for account of the borrower.

Medium to Long Term Direct Lending Program for SMEs.

Program Features

  1. CAPEX inclusive of land acquisition
  2. Permanent working capital

Types of Credit Accomodation.

  • Business Experience:  Profitable operation for the last 2 years.
  • Type and Tenor of Loan:  Medium term loan is up to 3 years while Long Team Loan is up to 7 years.
  • Loan Limits: Up to P50 million but not more than 305 for land acquisition.
  • Repayment Terms:  Principal and interest payable in arrears, quarterly or semi-annually.
  • Debt/Equity Ratio:  Maximum debt-equity ratio of 4:1 after financing and minimum net worth of P500,000.00.
  • Collateral:  Project assets and any acceptable collateral.
  • Application Fee:  For those applying for at least P1 Million application there will be a fee of P10,000 plus GRT payable upfront upon application, non-refundable.  If you will be applying for loans over P1 Millon, the fee will be P20,000 plus GRT payable upfront upon application, non-refundable.
  • Processing Fee:  1/4 of 1% of approved loan amount plus GRT which may be deducted from the loan proceeds.
  • Interest Rate:  Applicable PDST-F rate plus spread.
  • Out of Pocket Expenses:  For account of client as billed.
  • Taxes:  Applicable taxes for account of the borrower.

For Small and Medium Enterprises (SMEs) who want to avail of this Financing Program you can visit the Philippine Export-Import Credit Agency (PhilEXIM) at 17/F Citibank Tower, Citibank Plaza Valero Service Road, Salcedo Village, Makati City or visit their website at www.philexim.gov.ph.

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A blogger and social media user since 2007 back when it was not yet a mainstream. Graduate of BS Accountancy, a social media buff, Wattpad writer, entrepreneur, cosplayer, social activist and counselor.

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