When you first started your business, perhaps you already envisioned the day when you will eventually expand your brand. However, with the current COVID-19 pandemic, things have been a little challenging. From expanding your business, you’re now finding ways on how to survive amidst the crisis.

So, what are you going to do when cash flow is now a challenge? Will you just accept the fact and accept defeat? Before you hold back your plans, it’s time for you to know the different ways to stay afloat and survive this challenging time.

1. Maximize your credit cards

One way to stretch your cash is through your credit card.  

• You can pay your credit in flexible terms while already earning from the products you have purchased.
• Credit card purchases also entitle you to a lot of perks such as discounts and rewards.

And in compliance with Bayanihan to Heal As One Act, credit card providers are granting payment extension with due dates within the lockdown period.

Credit cards can help you extend your capital; however, it can also be risky if you aren’t mindful of your payment terms and interest rates. When using credit cards, you have to know your limits and make an educated calculation of how much you can pay in due time.

2. Apply for wage subsidy for workers of small businesses

Under the Small Business Wage Subsidy Program (SBWSP) of Department of Finance, 1.6 million businesses will be granted a wage subsidy.

Eligible workers in the National Capital Region, Central Luzon, and Calabarzon can receive P8,000 under SBWSP; P6,000 in Western Visayas, Central Visayas, Northern Mindanao, and Davao Region; P5,500 in Cordillera Administrative Region, Ilocos Region, and Cagayan Valley; and P5,000 in Mimaropa, Bicol Region, Eastern Visayas, Zamboanga Peninsula, Soccsksargen, Caraga Administrative Region, and Bangsamoro Autonomous Region in Muslim Mindanao.

More details can be found here

3. Apply for SME working capital loan

Business Line of Credit, also called a small-business loan, is a type of loan that allow you to borrow with a certain limit and that provides you quick access to cash.

• You can pay the principal anytime you can within the term while paying the interest monthly.
• You can also reuse that credit line as long is it remains open and you don’t exceed the credit limit.
• The bank can also renew your credit line annually.

Applying for a line of credit is reliable, but your business should pass the criteria imposed by the lending company. They need to check your credit history, the stability of your business, and other qualifications to see if you can pay your debt based on the agreement. They may also require collateral to secure your payment.

To avail a working capital loan for your business, you can apply here.

4. Avail a low-interest loan 

To help the micro and small enterprises affected by the COVID-19 pandemic, the Small Business Corporation (SB Corporation) will start accepting applications for the COVID-19 Assistance to Restart Enterprises (CARES) Program through its offices in general community quarantine (GCQ) areas starting from May 18.

Micro enterprises with asset size of not more than P3M may borrow an amount ranging from P10,000 to P200,000 while small enterprises with asset size of not more than P15M may borrow loan amount not exceeding P500,000.

The loan shall be used to help the enterprise stabilize or recover from its losses. Specifically, the following purposes are qualified: 1) Updating of loan amortizations for vehicle loans or other fixed asset loans of the business; 2) Inventory replacement for perishable stocks damaged; and 3) Working capital replacement to restart the business.

READ: Gov’t loan facility for small, micro enterprises is now accepting applicants in GCQ areas

On top of this option, RFC is also providing loans for entrepreneurs like you to keep you from financial stress and help you manage your business at these challenging times.

Being your own boss comes with a huge responsibility, and we do understand that sometimes the cash flow can be a little tight. We also know that in order to grow, you need to increase inventory or beef up your capital. RFC supports Filipino entrepreneurs by offering flexible business loans.

We help your business dreams take flight