July 26, 2012
MANILA, July 26 (PNA) — The recent robust growth of the Philippine economy, more notably the 6.4 percent first quarter growth earnings in Gross Domestic Product and the recent upgrade in the country’s credit rating, makes the country an attractive option both in foreign and domestic investments.
According to Franchise Guru and AFFI President Butz Bartolome, there are 2,300 companies franchising concepts in the Philippines today; 40 percent non-food and 60 in food industry with the success rate now at 85 percent.
The failure is attributed to proliferation of mediocre franchises.
Despite this, the franchise industry’s growth rate is pegged at 38 percent, an increase compared to last year’s 20 percent.
Binalot Fiesta Foods, Inc. (BFFI) aims to open more stores in more locations by making its franchise packages more affordable and accessible for potential franchisees.
Binalot, the home of the “Ultimate Filipino Food Experience” forges a new partnership with BPI Family Savings Bank through its Ka-Negosyo Franchising Loan Program in a formal handshake event last July 16, 2012 at BPI Head Office in Makati City with Binalot CEO Rommel Juan and BPI Family Savings Bank Division Head Ma. Mercedes R. Roces.
The financing scheme aims to fuel the growth of the franchising industry through affordable franchise financing for individuals who want to start a franchise.
The BPI Family Savings Bank Ka-Negosyo Loans is available in two variants: Ka-Negosyo Lite Mode and Ka-Negosyo Zero Collateral Program.
Under both loan schemes, a franchisee may borrow 500,000 to 1.8 million pesos to partially finance acquisition of Franchise Package and pre-operating overhead cost.
In the Ka-Negosyo Lite Mode loan package, a franchisee may borrow the 60 percent of the total franchise package and pre-operating overhead cost payable within a maximum of five years, with annual re-pricing based on prevailing market value with indicative interest rate of 9.25 percent per annum with real estate property serving as collateral.
Meanwhile, the Ka-Negosyo Zero collateral loan package offers the same 60 percent of the total franchise package and pre-operating overhead cost payable within a maximum of three years with 10-14 percent interest rate without the need of collateral.
BPI VP Ma. Mercedes R. Roces said: “We make it easy for potential franchisees to open a franchise. We just recently launched the Ka-Negosyo Best List – which is our growing list of accredited Franchise Brands.
“We’ve narrowed down the choices for the market and we make it even easier by making the financing component lighter on the pocket.
“A No-Collateral franchising loan is available for those who will apply for a Ka-Negosyo best list brand.”
Prospective franchisees can take advantage of the BPI Family Savings Bank Ka-Negosyo Loans and enjoy shorter processing time for loans, preferential exposure for bank marketing initiatives, preferential space in the Ka-Negosyo Website Directory and inclusion in the BPI Family Savings Bank’s Best List of Brands for the year.
New franchisees are invited to take advantage of the loan provided they have at least 2 years of gainful employment with no negative findings on the firm and principals.
Existing Binalot franchisees can also avail themselves of the opportunity if they have a minimum three years profitable business operations and must meet the bank’s acceptable GMIR (Gross Monthly Income Ratio) in relation to the projected monthly amortization) and a minimum assets of P15M, excluding land. (PNA)