INSTANT CASH FACILITY

When you are in business, you find ways to sustain your operations. This includes needed capital to finance big orders, purchase necessary equipments, or just additional funds for your working capital.

In business, as they say --- "Money gets money". And this is true i would say based on personal experience. Even if you received huge orders from your clients but if you don't have the needed capital to finance it, then you find yourself facing a huge brick wall. And so I wanted to share an option where business people can get the needed capital. Now a days, commercial banks offer different types of SME Loans and credit line.

One useful tool I use is thru Banks Instant Cash Facilities. Normal documents presented are 3 years Audited Financial Statements, Income Tax Return, Ageing of Receivables, and Company profile. The one I got is a credit line against Billing Invoice. Let's say I have an order worth P1M, upon presentation of my Billing Invoice, the bank would then credit my account 70% of the total invoice or P700,000. The remaining balance will be credited as soon as the bank receives full payment from my customer. Normally, bank charges 1.5% per month as finance charges. Not bad right?

Check this type of facility with your banks. I hope this helps.

It's in the cards | Features | Entrepreneur.com.ph

It's in the cards Features Entrepreneur.com.ph

HIGH COST OF LIVING IN MANILA

My principal from Korea arrived last week for installation of my customer's production equipment. We had this small talk about the cost of living in Manila. As a foreigner, he quickly compared price of gasoline, toll fees and electricity. Gasoline's gone up. SLEX tolls risen to almost 300%. Electricity of course, is a given. He says it's hard to keep up with a decent life in Manila especially for people receiving minimum and below minimum wages.

But I was surprised to know how cheap electricity is in Korea. He told me that he's living in a 3-bedroom condo in S. Korea and believe it or not, his electricity bills (even if he uses a 1T airconditioning unit) is just around $10 - $20/month. As I figured, it's because they have nuclear power plants running and so electricity is quite cheap. Maybe if only we supported the Bataan Nuclear Power Plant, then maybe, just maybe, electricity would have been cheaper here as well.

Credit Card Menace

Got a friend who recently had a problem with his credit card. Due to the slow down in the Semicon Industry, he was one of those thousands who were laid-off. Problem was, eventhough he lost his job, their family still needs to eat and so, his only alternative ---- plastic money.

To cut a long story short, due to non-payment for sometime, the bank sued him and filed a lawsuit against him. Do you know how much he owned the bank? ---- P150,000.

Lesson he learned: banks really mean business. So if you have a credit card, be responsible. If you can't pay, don't use it.

2nd Half of 2010 in the Semiconductor Industry

It's mid-June and before you know it, it's gonna be the start of the 2nd Half of 2010. Time really flies fast when your busy with business and stuffs.

Just to recap, Q1 and Q2 has tremendously made a 360 degrees turn around in terms of my business. The once slow and flat line industry for the past 2 years, made a huge turn around and is now on a ramp up. Due to expansion projects, left and right by our key customers, business has been so blessed with orders and more orders. Industry news says that buying of capital equipments in the Semiconductor industry shall continue until 2011.

And for equipment suppliers like me, that is really music to the ears. Really hoping that the 2nd half of 2010 shall indeed be merrier than the 1st half.