Domestic bills purchase loan
For a business owner. the daily flow of money to and from the business is very important. But sometimes there are non liquidity issues that may cause some problems. If you own a business, chances are that you will recieve checks as payment for your goods and services. And waiting for the time for your checks to clear will will hamper your ability to meet you own obligations. Checks usually take 3 days clearing period for local checks, 7 working days period for regional checks and up to one month for out of town checks.
You can avail to the domestic bills purcahse loan or more commonly known as BP. You can immeditaly withdraw and use the funds of the check with out waiting for the time for it to clear. Banks usually extend this type of loan with a colateral as a requirement. Collaterals usually accepted are lots and/or house and lots.
After securing a loan, you will be given a credit line depending on the
value of you collateral.
If you have a line of one million pesos. You can use as cash the checks issued to you for up to a total of one million pesos only. But If the check is dishonored, you are usually penalized with the prevailing lending rate plus 60% p.a. penalty shall be collected from the date of clearing until fully paid.