Need more capital? Try a micro finance institution nearest your area.

I am not really a distressed enterprise, but I need information.

I am a dried fish retailer from Tagum City, with two stalls in the New Tagum Public Market. At first, I wanted to deal in rice, as I come from a rice-dealing family. However, the woman from whom I bought one of the stalls insisted I sold dried fish as she had liabilities to settle with her supplier of dried fish in Davao City. It didn’t take long for me to realize how lucrative dried fish retailing is. A kilogram of dried fish turned out a profit of P25.00 while a 50-kg sack of rice fetched only P50.

I also found out before long that dried fish suppliers were making good money. One day my husband asked: “Why don’t we manufacture dried fish?” He spent a week among daing makers in Zamboanga. When he came home he reported the process was easy.

So we are now determined to set up a daing making operation in General Santos City. We have a small savings and my mother has agreed to lend us a little more. However, we need more capital.

I have given up borrowing from 5-6 operators. We have tried to borrow from a commercial bank and a rural bank but the requirements are tedious. We have heard about micro finance institutions. Do you have information about MFIs and their requirements and procedures?

Thank you in advance for your assistance.
Flora S.
Tagum City

Dear Flora S.

You are in the right track in considering borrowing from micro finance institutions.

In your area, in Mindanao, there are a number of micro finance institutions willing to extend loans to small businesses like yours. These include the Enterprise Bank (EB)and the Kabalikat sa Maunlad na Buhay, Inc. (KMBI).

Typically, you have to sign on as a member and be a part of a group or what is usually known as a center group

However, do not expect to be lent a big amount, at least not initially. You have to establish your borrowing/repaying record.

By definition, a microfinance loan is a “ladder-type” loan where a borrower could start from the minimum loan amount until he or she reaches a particular “cycle” or level where the borrower could avail of a bigger loan.

At first, you may be approved for P10 thousand, P20 T if you are lucky. As you prove yourself a worthy borrower, the amount that can be borrowed increases with every loan cycle completed, until you can borrow up to P200 thousand, perhaps a bit more.

Processing of loans is fast and paper requirements are minimal. Repayment of the loan is spread out thinly – you pay on a daily basis to a collector who goes around your area.

Because a microfinance loan or micro-loan is unsecured and character-based, some MFIs like Village Microfinance, the microfinance arm of Producers Rural Banking Corp., prefer borrowers with existing businesses.

Here are some contact numbers that may be useful to you:

Poblacion, Lianga, Surigao del Sur
(085)8392050; 8390351; 8393334
Contact Mr. Ignacito U. Alvizo, President

Abrille Bldg., J.P Laurel cor Jacinto St., Davao City
Contact Mr. Edgar S. Mercedes, Operations Manager

Unit 410, LANDCO Bldg., J.P Laurel Ave., Davao City
(085)8392050; 8390351; 8393334
Contact Mr. Ignacito U. Alvizo, President

For a directory of MFIs, click on this link.

1 Comment on Need more capital? Try a micro finance institution nearest your area.

  1. Ako po ay may maliit na canteen na nakapuwesto sa entrance ng isang subdibisyon sa Taytay, Rizal. Maganda naman po ang negosyo dahil may ilan ding opisina na malapit sa aming kainan. Marami sa mga employees ditto ay sa aming canteen kumakain o dili kaya ay nagpapabalot sila upang ibaon. Ang problema ko ay mula ng pinanganak ko ang aking bunso 1-1/2 taon na ang nakalilipas, bihira na akong makapunta sa canteen. Pinapatakbo ko ito by remote control, wika nga. Tiwala naman ako sa aking katulong (dating yaya ng mga bata) at ang kanyang kasama. Sila ang taga-luto, taga-bantay, taga-silbi. Ang gawain ko na lang ay ang mamili ng mga supplies tuwing Linggo. Nguni’t palagay ko po ay hindi ako dapat gaanong magtiwala. Ano pong puedeng gawin upang magkaroon ako ng konting control sa negosyo kahit ako’y madalas nasa bahay lamang at bihirang maka-silip sa tindahan?

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