 The Instant Office

 How to Raise Capital

 External Sources
Capital
 Some Guidelines in
Roland M. Roperos
Borrowing
 The Instant Office
 Early teachings in doing business looks at
structured center approach, where
entrepreneurs have to be concerned first about
where to establish an office and buying those
necessary provisions including support staff
normally needed in doing business.
 Business or entrepreneurs commence with
having an office or workplace and other
amenities (e.g., furniture, typewriter, phone
lines, fax machine, trash cans) which means
 The Instant Office
 This situation can be avoided by
letting someone else do it, or by
simply renting office address and
spaces like those offered by "FAX
AND PARCEL", "MAILBOX", and
"REGUS BUSINESS CENTER."
 At REGUS BUSINESS CENTER, for
instance, their instant offices attracts
 The Instant Office
 REGUS provides instant office fully-
equipped and staffed office tailor made
to suit specific needs of clients.
 The range of services provided by
REGUS and their kind of service
providers eliminates the hassles of
paper work and other organizational
headaches with its "sign up today,
 How to Raise Capital

As a small businessman, you should

know that money can be raised in
-various ways.
First of all, money can come
from your own pocket. This
may be in the form of savings
or proceeds from sales of
personal belongings, like a car,
a house, and jewelry.
 How to Raise Capital
- This money coming from the
owner's personal resources is
called the capital or owner's
capital.
- Of course, the safest way to
finance a business is with your
own money.
- The next safest way is to
 How to Raise Capital
- You will have to pay them
back, naturally, but they are
usually prepared to be more
flexible about when you repay
them.
- "Payable when able" - this is
the softest loan you can get;
and you can get it only from
 How to Raise Capital
- Sometimes, however, what
can be raised from your
personal resources and
those, which can be sourced
from relatives and friends,
aat not enough to meet all
the capital requirements of
 How to Raise Capital
- When this happens, you
can start looking for
outside sources.
- Many businesses have
failed because the owner
did not estimate the
financial needs carefully
 External Sources of
 Pawnshops - You can get quick
Capital
cash by pawning your jewelry and
other valuables.
 Credit cooperatives - These are
popular and easy source of credits
especially in the rural areas.
Usually, it lends an amount up to
three or five times bigger than the
money a member has deposited in
the cooperative. Interest charges are
 External Sources of
Capital - These are
Money lenders
people who lend quick money
without collateral, but charge
exorbitant interest rates. They
are otherwise known as "five-
six" operators, because they
usually charge about one peso
interest per month for every five
 External Sources of
 Lending investors.
CapitalThese are business
enterprises engaged in money-lending
operations. Considered a cross between
money-lenders and banks, lending
investors extend short-term loans
quickly to individuals and businesses
with or without collateral. Interest rates
are higher than bank rates, but lower
than those charged by money-lenders -
usually ranging from three to five
 External Sources of
Capital
 Formal sources of credit - These
include banks, financial institutions, as
well as certain government
development agencies and
development-oriented, non-
government organizations. They are
called formal sources of credit because
they have the legal authority or
mandate to lend money to Individuals
and businesses.
 Short - term Loans

1 payable in one year or less.

these are normally self-liquidating,
meaning, that these loans are used to
2 buy raw materials and supplies, labor
and otherrequirements that will generate
funds for the business and in turn, be
used for paying back the loan.
 Short - term Loans
it may come in the form of a revolving credit
line - an agreement by the bank to extend a
loan, not to exceed a specific amount,
3 whenever needed by the client. It is
automatically renewable as each loan
transaction is paid by the borrower.
these are normally self-liquidating, meaning,
that these loans are used to buy raw materials
4 and supplies, labor and otherrequirements that
will generate funds for the business and in turn,
be used for paying back the loan.
 Intermediate
Loans
intermediate loans or term loans provide
1
capital repayable in one to three years.

2 these are available from banks and other

financing institutions.
a term loan is backed by collateral
3 securities and is paid back in installments
over the life of the loan agreement.
 Long - term Loans

these are loans extended to enterprises

1 assured to exist over the long-term period
of the loans up to ten years.

these are usually extended by private

2
and government banks.
 Long - term Loans
Some lending schemes for small
entrepreneurs also provide long-term loans,
including:
 Development Bank of the Philippines'
Omnibus Financing Program for
Entrepreneurs
 Development Bank of the Philippines'
Industrial Guarantee and Loan Fund
 Land Bank of the Philippines' Easy
Pondong Pang-asenso
 Long - term Loans
Some lending schemes for small
entrepreneurs also provide long-term loans,
including:
 Land Bank of the Philippines' Easy
Term loan for Exporters
 Philippine National Bank's Overseas
Contract Workers Livelihood Loan
Program
 Philippine National Bank's
Pangkabuhayan Loan Program
 Long - term Loans
Some lending schemes for small
entrepreneurs also provide long-term loans,
including:
 Small Business Guarantee and Finance
Corporation's Small Enterprise Financing
Facility
 Technology and Livelihood Resource Center's
Agro Industrial Technology Transfer Program
 Technology and Livelihood Resource Center's
Export Industry Modernization Program
 Technology and Livelihood Resource Center's
Technology Utilization Financing Program
 Some Guidelines in
Borrowing

Borrowing from an
external source of credit
is a major decision for a
small entrepreneur to
make.
 Some Guidelines in
Borrowing

The First, evaluate yourself

whether you are in a
following
good position to
guidelines borrow. Be prepared to
may be put up collateral in the
useful, form of land, building,
especially for equipment, motor
vehicle, and other
first-time valuables.
 Some Guidelines in
Borrowing

The Estimate accurately

following the amount you need
guidelines to borrow. It is
important not to
may be
underestimate the
useful, amount required.
especially for Better borrow a bit
first-time too much than too
 Some Guidelines in
Borrowing

The Choose the bank to

following borrow. It should
guidelines also preferably be
may be one that is nearest
useful, to your home or
especially for place of business.
first-time
 Some Guidelines in
Borrowing

The The choice of

following banks must also be
guidelines determined by the
may be size and purpose of
useful, the loan, as well as
especially for the size and status
first-time of the business.
 Some Guidelines in
Borrowing

In comparing  Repayment period,

including grace
banks, find
period;
out about the  Interest rate and
following processing charges;
terms and  Mode of release of
conditions: funds, whether in
lump sum or in
installment;
 Some Guidelines in
Borrowing

In comparing  Mode of repayment -

whether monthly,
banks, find
quarterly, semi-
out about the annual or annual
following installments;
terms and  Collateral and equity
conditions: requirements; and
 Other restrictions.
Thank You
God Bless & Keep
Safe