I don’t have money to start a business – ANSWERED.

I don’t have money to start a business – ANSWERED.

Photo on 9-11-13 at 10.11 AM s

Hey business daddy! I don’t have money to start my business

I heard this a lot.
In a mirror… I said it a lot.

This is the biggest challenge that budding entrepreneurs  face.

I had the same problem.
Reality? We all need money. We all need money to start our own businesses.

[You should say, “Who’s there?”]
Cheese Curl.
[You should say, “Cheese Curl who?”]
Play at 0:06

Going back,

I attended a conference last April and the speaker talked about “going into business” because of CHOICECHANCECRISIS. I’ll try to write what I remember, I hope you guys can identify with em.

CHOICE – You want/You started your business because it was your own personal choice to sell products or service to others.  It was a decision to make.

CHANCE – It is when you inherit a business from your father or family, This is a chance/opportunity for you to continue the business. Or when you win a franchise of a food cart in a gameshow like “fry my balls fishballs” or “bukol juice”  😉

CRISIS – When you have nowhere to go… so you start a business. Crisis is when you gave up on working in a corporate setting or you got fired and no company would take you in or it’s when your responsibilities are high and your income is low or when you have “NO CHOICE” but to start a business like cigarette street vendors… or me. 😉

If you’re in chance or crisis, finding the money to start-up is easy. It’s either handed to you or you hand it to yourself. In CHOICE, we are often challenged with “WHERE DO I GET THE MONEY TO START MY BUSINESS

So let me share with you a few tips on how to find that cash for your start-up business.

But first. Another joke.
[You should say, “Who’s there?”]
[You should say, “Inday who?”]

So going back.

The first and easiest way is to USE your OWN SAVINGS.
This is the most basic way to fund your business, it’s also the safest way since you are using your own hard-earned money.

I want to call the next one, the LOVE LOAN.
It’s the kind of loan that your collateral is love. 🙂 I’m talking about a loan from a family member. You can always borrow from a relative, they will trust you the most right.
This can start a family feud. A family thingamajig that can break family ties. Doing business with family is still business: So still treat them as a bank or a financial institution.
Put everything on paper. This apply to friends too!

Another avenue for capital raising  for start-up businesses is by getting loans from formal lending institutions like banks/ rural banks, cooperatives or Micro-Finance Institutions (MFI’s). Though some people doesn’t have access to these financing institutions because of the fear of documentary requirements, lack of collateral, or just plain inexperience.

BANKS (explained a little more in detail)
One traditional way is getting a business loan from our friendly banks.

BANCO DE ORO – BDO offers a small business loan for guys like you and me. We can borrow at least 1 million pesos for a minimum term of a year. You can inquire at their webpage for more info. BDO has 740 branches (some of them are in malls too!) talk about convenience.

BPI (Ka-negosyo loan) – besides the usual loans, BPI also offers franchising loans (they will even help you looking for the best franchises for you!) Just when you thought that BDO had the most number of branches in the country with 740, BPI has 831! Plus, It’s the oldest bank (est.1851) in the country too! It is also the first bank to issue the “Philippine Peso”  – Another fun fact: The Archdiocese of Manila owns 8.51% of BPI, while the Ayalas own 44.71% of BPI. 😉

FOR OFW’s the best bank for you is Landbank They have specific loans for OFW’s with partnership from OWWA. 🙂

Though I remember an article saying that women are less likely to get a business loan than men, let me look for it. Here. I find this unfair if it were true, I know a lot of businesswomen who are really good at what they do!

I also heard that PS Bank and Planters bank (Planters Blank claim that they are the best bank for small business loans!) are good to work with your loans because they approve fast! 😛 I have yet to try them 🙂

Lastly, State provided pension funds.
If you were or you are an employee, you are eligible to get low-cost cash through state agencies such as SSS or GISIS salary loans or from PAG-IBIG fund’s multi-purpose loan. (Pag-ibig’s interest rate is the lowest.)


PS. In-daaaaaaaay will always love you-uuuuu.  Harhar. 😛

For Comments/Questions/Tips & Advice/Mentoring – Anything about business, marketing, sales or kahit pa love life.  Haha. 
You can write them here as a comment, OR
Email: abelardomarco@gmail.com
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Mobile: +639176274550


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