Tips from BPI to help you manage your cashflow and access financing support
While the world has not completely exited from the pandemic, it is now looking ahead at a global economic downturn. Without the financial buffers of larger companies, small businesses can be particularly vulnerable to the twin threats of rising inflation and declining consumer confidence, even if they have sound fundamentals. If you’re a Filipino entrepreneur concerned about your financial prospects, the Bank of the Philippine Islands (BPI) offers the following tips and resources to help you weather the challenging business landscape ahead:
- Create systems to protect recurring expenses critical to your business’ immediate and long term success. These can include those funding your raw materials and finished goods inventory, employee wages, utilities, equipment repair and maintenance, and sales or distribution costs, among others. Should you need financing support, BPI’s Ka-Negosyo Credit Line (KCL) functions like an extended wallet that enables you to conveniently draw funds from your credit line to bridge working capital requirements, as well as cover on-the-spot or unplanned expenses. You can immediately pay suppliers with your credit line by simply using BPI Online or Mobile app, or your debit card.
- Brace yourself for seasonal spikes & slumps. Depending on the nature of your business, you may find certain periods in the year that are busier than others, such as the approaching Christmas season for those in retail or F&B, or the harvest season for those in agriculture. You would want to ensure that you have the adequate supplies and inventory to seize opportunities that will eventually help tide you over during leaner months. To give you the flexibility to focus on growing your business, instead of constantly managing cash flow, during these times, BPI designed its recently-launched Ka-Negosyo Ready Loan (KRL) to help you with your cyclical funding needs that can be repaid from a quicker conversion or business cycle.
Consider investing in assets that grow in value. While it is understandable to focus on more conservative bets over the short term, looking at ways to turn crisis into opportunity by branching out, expanding product lines, or meeting other capital expenditures in response to consumer and market developments can unlock long term success. BPI’s Ka-Negosyo SME Loan (KSL) makes the expense affordable and light on the pocket, as paying the loan is monthly and can be over a long period of time.
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