Year: 2017

After months of comparing quotes from various car dealers, you’ve finally decided to purchase your own car. But the decision-making does not stop there. You still have to decide on and purchase what car insurance is suited for your vehicle and what actually fits your budget.

A car insurance is a type of policy that is usually purchased by vehicle owners wherein they pay a certain premium in exchange for coverage provided for by the insurance company. This gives financial protection to car owners in case of unforeseen incidents such as damage to the vehicle, injuries while driving the car, and theft of the vehicle insured.

Similar to the tedious research you did prior to deciding to purchase your car, there is also a lot of research needed to be done when searching for the right car insurance for you. For instance, it is easy to assume that since the word “comprehensive” is included in the comprehensive car insurance, does this mean that the policy covers you from all possible damages? Insurance companies offer a variety of coverage for car insurance. However, there are basic inclusions that are present in almost all.

AutoCARE Insurance, a product offered by Cebuana Lhuillier Microinsurance is a standard comprehensive car insurance, valid for up to 12 months, that covers:

Own damage

Theft, loss and/or damage

Excess bodily injury

Excess property damage and acts of God/nature

This includes Auto PA based on seating capacity maximum of 5 seats, including the driver.

In just 5 easy steps, you can avail of a comprehensive car insurance that gives you security whenever you’re on the road.

1. Visit any Cebuana Lhuillier branch near you.

2. Request for your preferred insurance policy.

3. Present the payment for the Certificate of Cover.

4. Accomplish and sign the Certificate of Cover.

5. Secure the Certificate.

Take note that you’ll need the following documents, whether in physical copies or digital files:

• Vehicle’s Original Receipt
• Vehicle’s Certificate of Registration
• Driver’s License
• Valid Government ID

An important thing to note when selecting the right insurance for your car is their financial capability and stability. Like any document you’re signing, it is of utmost importance that you read the fine print and take up any terms within the contract you may find questionable with your insurer.

Last, a comprehensive car insurance policy does not cover everything so finding the right policy that covers your needs. As a precaution, choosing a policy that covers Theft and Acts of Nature is a smart move.

If one goes to a typical bank, applying for a business loan could become a complex procedure. In fact, traditional banks make the loan application so tedious that it makes some entrepreneurs nervous or anxious about their chances of approval. The application process in itself is a challenge given the number of requirements involved.

So, if you find that applying for a business loan is a daunting task, read on because there’s a better way.

Cebuana Lhuillier, the country’s top community-based lending and money remittance firm, makes everything easy whether you’re an experienced business person or a first-time entrepreneur.  The company believes that its customers must receive fast, convenient service especially when it matters most — when they are in need of cash to put up or sustain a business.

In just four easy steps, you can finally work on your way to making it in the business. Read on and learn how you can apply for a business loan absolutely hassle-free.

1. Prepare the loan requirements

The first step is to prepare all the loan requirements.  These include at least one valid government-issued I.D., your business permit, and proof of income.  The proof of income may either be a payslip for a full month or an Income Tax Record (ITR).  A sales record or bank statement may be used by self-employed loan applicants.  It is also important to submit a proof of billing such as a statement of account or receipt for electricity, water, or cable T.V.  A credit card billing which shows the applicant’s address is also acceptable.

2. Submit the requirements

After gathering all the loan requirements, one needs to submit these documents to a Cebuana Lhuillier branch.  There are more than 2000 Cebuana Lhuillier branches around the country. It is best to choose the branch that is nearest to your residence or workplace.

3. Fill out Application Form

Make sure to ask for and completely fill-out the loan application form. It is important to write complete and accurate information for all fields cited in the application form.

After signing the forms, return it to the sales agent or staff at Cebuana Lhuillier and wait for their advice. It normally takes Cebuana Lhuillier at least three days to review and process the loan application.

4. Wait for the Loan Approval

Cebuana Lhuillier has made its loan application process so easy and customer-friendly. The loan applicant will actually receive a text message once his or her application is approved. Once you receive notification about the loan approval, there is only one more step to take.

5. Coordinate with the Cebuana Lhuillier Sales Agent for the next steps and other requirements.

The last step is to coordinate with the Cebuana Lhuillier sales agent who will provide additional information on how to secure and receive the loaned amount.

The funds or proceeds of the loan are given at the Cebuana Lhuillier branch where the loan application was filed.  The person who applied for the loan must present a valid identification card and the “Release Code” that was sent by Cebuana Lhuillier via text message.

Since there are more than 2,000 Cebuana Lhuillier branches around the country, claiming a loan has never been so easy and accessible.

Once an applicant receives notification of loan approval, he or she must immediately take the next steps to receive the funds or proceeds.  Approved loans are valid for seven days. If the loan is unclaimed after seven days, Cebuana Lhuillier would consider the loan as cancelled or revoked.

Given the five easy to follow steps in getting loan with Cebuana Lhuillier,  the goal of becoming successful in business is now more attainable than ever.

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There are few important points to consider when applying for a personal loan. In this article, we’ll be discussing the steps you need to take before taking out a small business loan.

A small business loan could mean the difference between daydreaming and actually making your dream come true.

Maybe you’ve held that idea in your mind for such a long time. But you already know that all you need is a small loan.

With that small loan, you can finally execute your plan of building a business.

But where do you start? Consider the following smart steps before applying for a business loan:

1. Know Your Purpose

A personal loan can be used for just about anything. You can use it to buy the latest pair of sneakers or to snag the latest smart phone in the market.

So, in this article, our aim is to take out a loan to start a business or to support an existing enterprise.

Knowing your purpose for the loan will prevent you from misusing the funds and missing your goal.

2. Clearly Identify How Much You Need

What aspect of the business needs funding? Are you a start-up that needs to fund every single item in your list from the business registration to buying an initial inventory? Will you use the funds for the business space or store rental?

Identifying how much money you need to borrow is closely tied to the first step, which is knowing your purpose. Knowing exactly how much you need to borrow is also dependent on your market research. For example, if you need to rent a store space, the wise thing to do is to survey the rental market to see the prevailing rates in the locations that you prefer.

3. Review Your Capacity to Pay

In reality, it’s easy to borrow money but hard to pay.  Getting a business loan from a bank or a lender is relatively easier since it is part of the services they offer. It is only a matter of being qualified to take out a loan. One of the qualifications or requirements that banks or lenders prioritize is one’s capacity to pay.

Check your cash flow if you can generate and save enough cash to make good on the monthly payments for your loan. Ask your loan provider about flexible loan payment terms to make sure you have the ability to pay your loan on time.

Remember, you needed extra cash in the first place and that is they reason why you need a loan. Knowing your capacity to pay will help protect you from penalties for late payments or loan delinquencies.

4. Select a Loan Provider

Selecting a loan provider is very important because it will dictate what kind of loan you can take, how much loan you can apply for, the type of payment schemes available, and the requirements you need to prepare for loan application.  Of course, the industry reputation and services offered by the loan provider are essential points to consider.  The loan provider must be fair and complies with industry standards and best practices.

5. Prepare Loan Requirements and Other Documents

The last important step is to make sure you have prepared all the documents that must be submitted to the loan provider. These documents may include pay slips, latest tax payment receipts, or documents for your collateral.

Starting and staying in business is a challenge. But it is a challenge that can be overcome as long as you get enough support or assistance.

For many entrepreneurs, a small business loan is enough to pump prime the store or shop to better profitability.

For start-ups, a small business loan is exactly what is needed to translate a vision into reality.  So whether you are a seasoned entrepreneur or a budding business person, make sure to take out the right loan with the right amount and with the right loan provider. Taking the rights steps in applying for a loan is a path that will you to success.

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Taking out a loan has always been thought of as negative since it is equated with being in debt. Yet there are good reasons for applying for a loan.  If a person or a company knows the difference between good and bad debt, then having loan can indeed be a positive step forward.

First things first, what makes a loan good or bad?  Well, a bad loan is debt that is used for frivolous and unnecessary spending.  A good loan, in the context of business, is the use of borrowed money to start or expand an enterprise. In short, a good loan builds the business while a bad loan is borrowing money for wasteful spending.

A business loan can be truly beneficial for the following reasons:

1. Start-Up Fund for Your Business

Applying for a loan makes sense especially for new entrepreneurs or start-ups. Reality is, as they say, it takes money to make money.  Putting up a business requires having a sufficient amount of start-up capital.  Start-up capital is used to pay the government registration fees including the business permits, stocking up on inventory or supplies, setting up a store or office, buying or renting the office space or shop, and paying your employees’ salaries.

2. Improve Your Cash Flow

For established businesses, taking out a loan is beneficial when the proceeds or funds are used to improve cash flow.  Cash flow is defined as “the total amount of money that moves in and out of a business”.

For example, the amount of money that is invested for day-to-day operations is called operating cash flow.  This includes the money used to buy and stock inventory, wages of employees, bills paid for business utilities, transportation costs, among others. When a business does not have enough money to sustain the daily operations, taking out a short-term loan may be one of the options available.

An even better example for improving cash flow is when a business owner uses a loan to purchase more stocks or items to be sold.  In some cases, the borrowed money is used to buy more equipment and other materials which will then be considered part of the business capital outlay.  At the surface, this is money being spent outside the business to purchase goods which in turn, will increase productivity and sales for the company.  The improved productivity and sales, of course, will bring in positive cash flow back into the company. As a result, the business grows.

3. Business Expansion & Maintenance

There are instances when an entrepreneur sees a new opportunity to enter into another line of business.  Once he or she decides to expand into a new business line, more money is needed to serve as capital. Taking out a business loan is a viable alternative when the potential for financial success outweighs the risk of borrowing money.

Established businesses also resort to loans when much-needed maintenance is needed. This is very common in businesses involved in manufacturing and food services. Manufacturing businesses usually use a number of machines that need to be repaired or replaced.  Food service companies like restaurants, on the other hand, periodically need to replenish stocks or renovate their shops in order to remain competitive. When the daily incomes or net earnings of the company are insufficient to fund the maintenance needs or planned business expansion, a business loan is a reasonable option to consider.

4. Emergencies

Emergencies do happen to businesses.  Whether it is fire, severe flooding, earthquake, and other natural or man-made disasters — these unfortunate events cause damage to the business and to the people who run it.  A business loan will be a lifeline to sustain or revive a business that has been struck by an emergency.

5. Hiring New People

A business loan is also a useful tool in helping a company pole vault to success.  Such pole vaulting often involves hiring good talent, which takes money.  Whether one hires for top management, supervisory, or rank-and-file positions, the hiring process inevitably takes a certain amount of funding from publishing the job vacancies to making actual job offers to applicants. Of course, once new people are hired, it creates a new line of expense in terms of additional payroll. When a company or business leader sees that the benefits of hiring new people to run the firm outweighs the costs of repaying a business loan, borrowing money becomes logical and necessary.

While no one wants to be in debt, there are strategic uses and proven benefits to taking out a business loan. With a clear purpose and a right strategy, a business loan can make a business reach higher heights of productivity and profitability.

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The inevitable day when one passes away is a reality to all humans. However, minimum wage earners are the most at risk when facing natural calamities, such as typhoons, earthquakes, etc. They also put themselves at risk daily with incidents of crime and road accidents.

Whether man-made or brought about by nature, these risks and threats need to be managed or prepared for by wage earners not just physically and emotionally, but also through financial means. Financial preparation is, however, another tough challenge for most working people. Whatever risk one faces, it is important for everyone, especially minimum wage earners to be prepared, especially financially. But since money is tight for minimum wage earners, it is a challenge to be financially prepared for risks and crises.

Imagine being a minimum wage earner with a take home pay ranging from Php 264 to Php 491 per day, depending on the nature of work and location. With this amount, a typical earner prioritizes for his and his families’ basic needs – food, shelter, and school expenses for the children. More often than not, they end up with little or no extra income to set aside for insurance. This makes the impact greater when unforeseen incidents such as illness, accidents or death happen, greater not just for the earner but for his beneficiaries as well. With the prevalence of “5-6” loans, those in need of immediate financial aid resort to these financial schemes which later push them to long-term debt. Requesting aid from employers in the form of salary deductions is also an option they mostly choose. But similar to 5-6 loans, this is not something that would help them in the long run. 

Knowing this, the country’s top pawnshop and remittance company Cebuana Lhuillier developed a micro-insurance product that is simple, affordable, and accessible to every minimum wage earner. The term micro-insurance, in essence, is about providing benefits to people who need financial assistance in exchange for low-rate premiums. For as low as Php 40 or the same value of a mid-priced, kilo of rice, an individual can receive cash benefits as high as Php 20,000 for accidental death or dismemberment, Php 5,000 fire cash assistance, and Php 5,000 micro-life insurance.

Cebuana Lhuillier made sure that appropriate risk protection plans for low-income individuals and members of the informal sector are made available as a way for them to financially prepare for the risks they face daily. With micro-insurance, everyone, especially minimum wage earners in need of financial assistance already has a viable option and a sure financial aid. Micro-insurance products like Cebuana Lhuillier’s Alagang Cebuana Plus Gold can help minimum wage earners rebuild their lives after a sudden loss, sickness, or accident.

With more than 2,000 branches nationwide, a wage earner can simply walk into any Cebuana Lhuillier shop and fill-out the forms. Claims processing only takes 24 hours and requirements are also very easy to comply with.

Indeed, through micro-Insurance, minimum wage earners are assured that they and their loved ones are protected.

Having a food business is one of the best ways to create positive cash flow.  Since food is a daily necessity, there is always a market ready to buy as long as what you serve is quality food that is reasonably priced. It also helps if your restaurant, eatery, or food stall is located in a high traffic, high volume place easily reached by customers.

There are many ways to improve cash flow including having a rationalized staffing plan, having a timely stock inventory, or reducing waste in food production.  There is a reason for the cliché, “Cash is King.” The flow of cash in and out of your establishment determines whether you stay in business or not. But as all people who are into a food business already know, it is not that simple.

The reality is, being in the food business is a challenging endeavor. Needless to say, competition is stiff given the availability of hundreds, if not thousands of choices. Just walk along any busy street and you will find endless options ranging from the upscale restos, mid-range priced diners, or the more ubiquitous food stalls and carinderias that all offer a good menu that is priced just right for their niche market or a certain type of diner. What if a newer restaurant suddenly sets up in front of your venue and gives you a good “fight?”  Can you handle the change in cash flow when some of your regular or would-be customers move to the other side?

Or how will you handle the change in the price of commodities like rice, meat, fruits, and vegetables? This would surely upset your usual budget for the restaurant kitchen or commissary. Even the supplier you’ve known and trusted for years might instantly yank up prices in order to keep up with inflation and market forces that dictate how much food items cost.

Have you even considered the need to constantly innovate not just your menu but the total dining experience in your restaurant?

Perhaps it is time to do a renovation of the dining area or the kitchen of your restaurant?

Perhaps you are in the food manufacturing business and you find yourself needing to invest in the latest equipment for cooking and packaging your food product.

Indeed, there are challenges that affect your cash flow and, ultimately, the bottom line of your business. But for the true-blooded entrepreneur or businessman or woman, the only acceptable result is success.

Succeeding in a food business — whether it is in producing and packaging food, having a restaurant, a food stall, or even participating in a food park — the key is always found in the infusion of capital. This is another proven way to improve one’s cash flow.

While it may sound counter-intuitive, getting a business loan is a good option. With a business loan, you can bridge the gaps that bleed your business. As a financial tool, a business loan can literally save your business and bring it back to life.

Cebuana Lhuillier’s Business Loans have helped food entrepreneurs and other people who entered into a business of their own. (We started offering our business loans only this year. Karl) The loans offered by the country’s top remittance company are affordable, flexible, and accessible to people from all walks of life.

Having a food business may be a daily challenge. It takes long hours of work and a genuine passion to keep your customers satisfied. With a well-calculated loan, taking your food business to the next level will be an achievable goal. If done right, pump priming your business will help ensure that cash flows back to you like an unlimited buffet of success.