Financing Programs Loans and Financing Programs for Micro, Small and Medium Enterprises

Post-Shipment Export Risk Guarantee (PERG)

Program Title: Post-Shipment Export Risk Guarantee (PERG)

Program Objective: To provide small and medium-sized exporters with a complementary postshipment finance facility through a guarantee cover that will encourage lenders to purchase export bills, refinance outstanding preshipment export loans as well as extend any form of receivable financing to such exporters pending actual remittance of payment by overseas buyers.

Guarantee Cover:    Ninety percent (90%) maximum

Eligible Borrowers:

• Direct or Indirect Exporters;
• Majority-owned Filipino enterprise;
• Must not have any derogatory record;
• Experience:

• a. ETFG
  New-to-Export:
  • Annual domestic sales of 5x the value of the export L/C
  • to be financed
  • Profitable operation
  • Principal/Key officers successfully completed 2 L/C
  • transactions
• Beginning Exporter:
  • CEO/Export Manager: 2 years exporting experience and successfully completed 2 L/C transactions totaling 150% of the export loan
  • Firm:  Operating for at least 6 months
• b.     RELG
  • 2 years exporting experience with export sales of at least US$50,000.00
  • Profitable operations for the immediately preceding 2 years and at least 50% of revenues is derived from exports

• Maximum debt to equity ratio of not more than 5:1 after financing for both ETFG and RELG;
• Minimum networth of P250,000.00 for ETFG; and
• Minimum networth of P500.000.00 for RELG.

Loan Purpose:

• Purchase of Export Bills;
• Settlement of outstanding availments against a preshipment export credit facility while awaiting proceeds of export receivable; or,
• Postshipment financing to cover the usance period or credit extended to the buyer.

Terms/Requirements:

Amount:

• Export Trade Finance Guarantee (ETFG)-Transactional Loan
  • Minimum of P150,000.00 or its equivalent in US dollars and a Maximum of P9.0 Million or its equivalent in US dollars
• Revolving Export Loan Guarantee (RELG)
  • Minimum of P150,000.00 or its equivalent in US dollars and a Maximum of P20.0 million or its equivalent in US dollars

Interest Rate:    Determined by the bank, usually at market rate.

Maturity / Repayment:   Maximum 180 days for ETFG;  Revolving for 1 year for RELG

Security (Minimum):

• ETFG
  • Assignment of Proceeds of Export/Domestic L/C;
  • Personal guarantee(s) of principal(s) with conforme of spouse, if legally married.
• RELG
  • Assignment of Proceeds of Export/Domestic L/C, Confirmed Purchase Order (CPO) or Confirmed Sales Contract (CSC) or Export Bill;
  • Personal guarantee(s) of principal(s) with conforme of spouse, if legally married.

Guarantee Procedures:

• Loan Value - Maximum of 100% of export/domestic L/C, CPO or CSC value for both ETFG and RELG.
• Types of Disbursement (for ETFG and RELG)
  • Import L/C / TR Facility for Foreign Input Loan (FIL)
  • Domestic L/C / TR Facility or disbursements for local raw material purchases
  • Value Added Loan (VAL) to finance overhead expenses

Guarantee Fees:

• Processing Fee - % of 1 % of guaranteed portion for ETFG; 1 % of guaranteed portion for RELG
• Utilization Fee - Minimum of P500.00 or 2% per annum of guaranteed portion for ETFG;   minimum of P500.00 or 1% per annum of guaranteed portion for RELG

Program Partners:

Allied Banking Corporation, Asia Trust Development Bank, Banco De Oro Universal Bank, Chinatrust Commercial Bank Corporation, Bank of the Philippine Islands, China Banking Corporation, Equitable PCI Bank, Export and Industry Bank, Land Bank of the Philippines, Philippine Bank of Communications, Philippine National Bank, Planters Development Bank, Rizal Commercial Banking Corporation, United Coconut Planters Bank and Union Bank of the Philippines.