Year: 2017

Many small to medium businesses are growing in the Philippines. Perhaps you will join the ranks one day as one of the country’s innovative businessmen. If you’re thinking about building a business, you will wonder where you’ll get the money.

There are two ways. One is through loans, and one is through investment. When you loan money from an individual or an organization, you’ll usually pay them with interest after a period of time. Even if you are borrowing from a family member, it’s always best practice to still pay interest when borrowing money. When you get money through an investor, you’ll usually need to give up a certain amount of equity of your business in order to get the funding you need.

Depending on your business, you’ll have to choose wisely on how you’ll get money to start. If you do choose to get a business loan, you can choose from different sources like banks or credit unions. They will have their own set of requirements, but in general, the following documents should be sufficient to submit to acquire your business loan.

1. DTI permit for single proprietorship and SEC registration for corporation type of business
2. Completely filled up application form
3. Government IDs
4. Business Permit
5. Photocopy of Income Tax Return
6. Photocopy of Audited Financial Statement
7. Bank Statements

All of these are needed for big sums of money, but if you only need smaller amounts, there’s another solution.
You can also avail of a business loan from Cebuana Lhuillier. You’ll only need to give photocopies of your:

• Business Permit
• Proof of Income
• Proof of Billing

Interest rates are as low as 2%. While this is only available to the Laguna and Southern Manila area, you can be sure that one day your business will get off the ground with Cebuana Lhuillier as your business partner.

When you learn how to manage your finances, you’ll see that your money will flow in easily.

Are you having a hard time with budgeting your expenses? Here are 7 ways to improve your financial health.

1. Recognize needs vs. wants – Sometimes luxuries can become needs, but we all know that it’s just our mind’s trickery. For example, it’s tempting to buy a gadget with all the latest features at a premium price.

But in reality, do you really need a complicated but luxurious phone? Or are you okay with just the right specs? If you want to invest well on something, know the difference between a need and a want. From there you can tell if you do need to buy it or not.

2. Start saving – It’s never too late to save, and the best time to start saving is today. It’s not wise to rely on credit cards to pay everything for you.

Saving your money is a sign that you are on the road to financial independence, and that you have specific goals like buying a car, saving for your future family, or saving up for further studies. It’s important to create and stick to a budget so that you can see where your spending habits are taking you.

3. Maintain an emergency fund – You can create a separate savings account for your emergency fund. This is money that you’ve saved for an urgent matter, like a car accident or a medical bill. Usually though, you won’t be in an emergency. This can work to your advantage.

et your emergency fund grow by continuously contributing part of your income into your account. In an actual emergency situation, you’ll have enough money to pay what you need to pay.

4. Live within your means – It’s not enough that you save. You should be mindful of your spending habits. Do you use a credit card often? Do you spend more than you save? Living within your means simply means you’re spending less than the money you bring in.

If you’re living in an apartment you cannot afford with your salary, you can move out and choose to live in a more affordable place so that you can save more. If you’re buying too much groceries, learn how to plan your meals so that you don’t have a surplus of food that will just expire.

5. Track your spending – there are so many apps available on the Internet that you can use to track your expenses. Download those on your smartphone and be able to take note of bills, receipts, and other things you spend on the whole month.

One good app available for both iOS and Android is Mint—it helps users create budgets with many expense categories with easy control and a smooth interface. Other great apps are Wally, Level Money, Fudget, and Pocket Guard.

6. Invest in the right (micro)insurance group – with microinsurance, you take care of yourself and your investments even more. Having an insurance would protect you financially from untoward expenses like accidents and calamities. Microinsurance benefits low-income families and provides them with simply understood contracts unlike regular insurance policies.

Microinsurance policies covers life and savings, death and burial insurance, as well as even property insurance. This will help your family recover from calamities like earthquakes and floods and bill shock from hospital stays and other medical expenses.

7. Become more financially-literate – it’s a good idea to read more about how to save and invest. Read up on entrepreneur websites and blogs, as well as read up on financial stories to take lessons. You can read up on financial literacy blogs from investment experts and analysts, such as: Frugalwoods, Millennial Money Man, and Afford Anything.

You’ll learn how to afford your lifestyle by eliminating expenses that don’t matter. These blogs help you gain financial freedom, even if it’s to start your business or move up the corporate ladder efficiently.

When you create healthy practices for your personal finances, you’ll be able to save properly and spend on more important things in your life. Just follow these tips and you will have more money for your future.

An individual usually applies for a loan to pay for a vacation, or to pay for house remodeling. Whatever the reason, personal loans don’t come cheap, and they may have high interest rates. If you’re interested in applying for a personal loan, it’s best to look for several options.

Here is a quick guide on where you can go to for a personal loan.

1. Banks – Traditionally, individuals apply for a loan through banks. You will need to fill out and submit a loan acquisition form along with other requirements. Interest rates in banks are conservatively low, but the process for applying could be sometimes long and tedious.

2. Credit Union – these are financial coops that provide financial services to its members. You have to be a member to apply for the loan.

3. Peer-to-Peer Lending – also known as “Social Lending,” P2P lending allows people to borrow or lend money without a financial institution as middleman.

4. Microloan – A loan containing a small amount, lent with low interests, to both individuals and new businesses.

5. Co-signer loan – a person who agrees to pay someone else’s debt if the person cannot pay for the loan.

6. Licensed Money Lenders – an individual or a group of people who lend small personal loans with high interest rates. They usually come out as a last resort for borrowers with bad credit history.

These organizations and individuals can help you attain your personal loan, but choose wisely. Sometimes, interest rates can be too high in one group, or the number of years for you to pay might be too short. When you’re ready to get a personal loan, you’re making significant life improvements and you’ll also continue to save up for something better.

We are about to end the first quarter of 2017. Have you started saving, spending, and investing like a pro lately? If so, congratulations, and keep it up. The next step is to share to your friends and family how they can also start maximizing their overall income so that they can earn more and save more.

If you haven’t started using your income wisely yet, there’s still time to learn! Your basic everyday spending habits may make or break your savings. To avoid being broke and living from paycheck to paycheck, this Financial Checklist can help make 2017 your year of prosperity.

Print this page and tick the boxes when you’re done.

Have you:

 Have you reviewed your bank statements and monthly bills? (You can find out how much goes into your savings account and how much goes to your rent, bills, utilities, groceries, and other everyday expenditures.)

 Have you set daily, short-term, and long-term financial goals? (Setting goals at different points of your year helps you become more responsible and give you more guidance how much you should save.)

 Have you created or revised your monthly budget? (A budget generally consists categories where your income could go to. These can be rent and bills, food, recreational activities, or your emergency fund. Knowing how much you can spend on a monthly basis can give you a better idea on where your money goes and how much you can save.)

 If you’re living with a partner or you’re married, have you discussed financial matters together? (You have to be open and honest about your plans. While traditionally, one partner is in charge of handling finances, it’s good to occasionally talk about your budget so that they can keep tabs on how much they can spend. You can discuss your overall savings and spending habits, for example, and talk through mistakes that you both can avoid in the long run. Don’t forget to use “we” when talking about finances.)

 Have you studied more about financial literacy? (You don’t have to spend a fortune learning about how to be financially healthy. Look for websites and blogs that give spending and investing tips for families like yours. You can learn to start a budget, how to use a savings account and a checking account, and how credit cards should help your life, not bring you in debt.)

The key to a prosperous year is to always check if you’re within budget, and revise when needed. It’s good to always be open and honest about your finances to those who matter to you. Beware of unreliable sources and unreliable people. Once you keep with your budget, it’s much easier to see that financial freedom is just a step away.

Are you growing your business?

All businesses need to start with capital, and usually owners get loans to get going. If you’re not sure what to prepare for a business loan—whether from a bank or from a lending organization like Cebuana Lhuillier—you should consider collecting the following to get you ready.

1. Collateral – this is an asset or a set of assets that the borrower gives in order for the lender to secure the loan. It offers security to the lender in case the borrower doesn’t pay the loan back.
2. Business Plan – a plan that contains your vision, mission, objectives, and budgets for your business to operate.
3. Accounts Receivable – this is money owed to debtors.
4. Accounts Payable — This is money that a business owes because it has been given proper goods and/or services.

5. Personal Credit Report – a summary of your financial information, including your creditor report.
6. Income Tax Returns – a document with the BIR that reports your income, profits, and losses of your business, as well as other deductions.
7. Financial Statements – a document reporting your financial activities and the position of your business in terms of assets and liabilities.
8. Bank Statements – record of your bank account’s balance, how much you’ve withdrawn, and much you’ve deposited.

9. Legal Documents – It depends from the lending organization or bank, but you might have to disclose certain legal documents like: business licenses and registrations, contracts with third parties, franchise agreements, and commercial leases
10. Loan Application Form – of course, you cannot apply for a business loan without filling out a loan application form!

Once you’ve prepared all of these, you’re now ready to sign up for a business loan. Take note of the number of years you have in order to completely pay your loan, as well as the interest rate and penalties if you don’t pay on time.

Being a responsible businessman is also as important as being a responsible borrower. So, prepare well for all your business endeavors.