SMEs told to prepare financial records to avail loans faster

MALAYBALAY CITY (MindaNews/ 15 September)– Small and Medium Enterprises (SMEs) and organizations supporting them must work on their financial documentation to hasten the loan application process, a local bank official said on Friday.

Cynthia Aban, Philippine Savings Bank (PSBank) branch head here, said a common difficulty among SMEs in accessing loans is the lack of a financial documentation.

Even if they have other requirements, like a credible guarantor, that would not be enough to access loans, she noted.

Many SMEs could not get credit lines because their financial and tax reports are not in order, Aban told MindaNews.

PSBank, a commercial bank, offers its SME business credit line, which is described as a revolving credit line useful for additional capital, business expansion, equipment and inventory acquisition, or as a standby fund.

Aban stressed that many of those who apply for loans with them and with other institutions prepare their financial documents only when told it is a requirement.

“As business people, financial documentation should be at the forefront of their concerns,” she said.   

Aban urged SMEs to learn the value of financial documentation as it adds to their business savvy, aside from readily addressing the need of credit investigators for financial records.

But Aban also admitted that some SMEs could not access loans because they have no collaterals. 

Access to financing is one of the four core problems of SMEs in Bukidnon that’s why they continue to organize the local SME caravan, Manny James Cudal II, chair of the Bukidnon Micro, Small and Medium Enterprise Development Council said in July in time then for the Bukidnon SME Caravan.

He said they also needed support in better business environment, access to markets, and productivity enhancement. (Walter I. Balane/MindaNews)

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