While the number of people who use bank financing to buy cars has gone up, the number of borrowers who have gone into default has also increased. Figures on credit cards are better, but not too rosy – with the receivables to total loan portfolio (TLP) ratio so far just slightly lower at 4.5 percent than last year’s 4.8 percent.* This is in glaring but promising contrast with Esquire’s default rate: just a little over 1 percent of its total loan portfolio.
Point for assessment: if one borrows for a good reason, like growing a business, borrowing does not have to be a daunting decision.
Theoretically, there should be adequate available funding for a small to medium enterprise, since banks are mandated to apportion 8 percent of their loan portfolios to SME financing. Realistically, bank financing is not as accessible to SMEs, given their track record, credit information and inability to offer acceptable collateral.
Esquire Financing Inc.’s services are designed for the finance-seeking entrepreneur who fares well with the (five) Cs of credit: character, capacity, capital, conditions, and collateral.
EFI looks into character – the individual’s credibility and reputation, as can be determined through credit reports and personal references, and capacity – or one’s ability to repay the loan, determined by his financial circumstances and the business’s cash flow. A healthy starting capital (which may include the owner’s personal assets) and financial conditions also help make for a favorable case for the business. One betters his chances for credit if he has a clear vision and execution plan, including how he intends to utilize the funds being sought.
Coupling consultancy with accessible and flexible financing, EFI offers partnership that sees to the growth of its client’s venture – making sure the business develops well enough to cope with its expenditures, loans included.
Currently with a P1.25 billion loan portfolio, EFI is focused on contributing to economic development in the country by supporting and empowering emerging enterprises.
Learn more about EFI’s fast and efficient financing solutions by calling +632.903.0159, +632.846.2923 or +632.846.3074.
*Calapati, J. (2012, May 23). Car loans up; so are defaults. Malaya Business Insight, p. A1.
by: Glorydee Magno
The 5 Cs of Credit: Make your business credit-worthy (character)