BPI Family franchise loans up 150%

MANILA, Philippines - BPI Family Savings Bank Inc. has posted a three-fold rise in its franchise loan portfolio, a top bank official said.

Jose Teodoro Limcaoco, BPI Family president and CEO, told The STAR that the bank’s total portfolio for franchise loans is now over P400 million, growing more than 150 percent from the end-2011 level.

“BPI Family’s Ka Negosyo franchise loans have shown excellent progress in the 18 months since the program’s inception,” he said.

Loan releases, he said, are close to P250 million in 2012 alone with an average loan of under P2 million.

“This shows our commitment to small businesses,” the BPI Family official said.

On the profile of borrowers, Limcaoco said around 30 percent of the customers are located outside Metro Manila.

He said this is one way of “showing our commitment and confidence in the growth of entrepreneurship in the provinces.”

Limcaoco said the bank currently has 61 accredited franchise brands as part of the “Best List” program, up from 50 that were accredited as of June.

“The three way partnership between a franchisee as a borrower, the franchisor as a source of expertise, and BPI Family as the financial partner benefits everyone as it allows each one of us to grow our respective businesses while helping the other two,” he said.

By year-end, BPI Family expects the number of franchise loans to reach 70.

“We accredit brands after we review their business models, the historical performance of their stores and their support for franchisees. Our loans are granted to new entrepreneurs who are purchasing a new franchise as well as to seasoned businessmen who are purchasing a second, third or even a fourth franchise,” Limcaoco said.

“Sometimes the loan is granted to expand an existing franchise.  We see employed individuals who wish to shift careers or earn extra income by engaging in a known franchise business, overseas Filipino workers who are settling back in the our country or retiring parents and even grandparents who want to give their children (or grandchildren) a gift of a franchise instead of a car or condo,” he added.

He said they would continue giving out loans for the program.

“Our franchise Best List is our way of working with known and experienced franchisors to help spread their business ideas.  In a way, our franchise loan program is our way of making it easy to own a business.  We can lend up to 60 percent of the total cost of setting up a business,” he said.

The growth in the loans for this kind of sector also is reflective of the strong economic growth that the country is experiencing right now.

“The clear success of this franchise lending platform validates our belief that the confidence in our country remains strong,” he said.