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.

SUPPLIER ACCREDITATION PROCESS

Most companies, especially the Multinationals, require supplier accreditation before you can do business with them. This is very normal especially in manufacturing companies in Semiconductor, Electronics and Automotive industries. The job of accreditation is done by Purchasing Department or General Procurement Services or Strategic Outsourcing Department, whatever it is that they call it.

So, what documents are required to be submitted for accreditation purposes?

Generally, companies have standard application for accreditation forms which you have to fill up. They would also require you to submit copies of your SEC registration, BIR registration, DTI registration, Mayor's Permit, Income Tax Return with audited financial statements, and Lists of stockholders.

Normally when you have complete documents, supplier accreditation process should be a breeze.