Multi purpose loans
If you are a business owner who employs people, chances are they have asked for an advancement of their salary more commonly known here in the Philippines as 'utang' or 'vale'. When you give in to their request, you are using the money from your business to finance their 'vale'.
Giving the loan to one or two individuals will not effect the flow of your money too much. But if you have lots employees, that could result in a significant reduction of your money for the business that could be used for more profitable things like buying raw materials or paying your suppliers in cash to avail of discounts that are usually extended to cash buyers.
Banks do facilitate a type of loan that will benefit most business owners facing this kind of problem called the multi purpose loan. It is called multi purpose because it can be used for tuition fee payments, home improvements, credit card bills, furniture and appliance purchase, travel or vacation expenses and the likes with no collateral requirement.
It is the bank that will finance the money to loan to your employees,
thus freeing up your money.
To avail this type of loan. Here are some typical company accreditation
- Must have been operating for the past 3 years, preferably profitable
for the past year
- Favorable credit findings
- Minimum of 50 employees