• Allows businesses to secure short-term funding based on the value of a signed contract, using the expected payments from a government or private sector contract as collateral. This facility aims to provide working capital for businesses that may not have immediate funds to complete awarded contracts.

Eligibility:

   1. Must have a valid and approved contract awarded by a government agency or private entity.

   2. The borrower may be an individual contractor, registered business, or corporation.

Guidelines:

    1. Loan Type – Contract Financing (Supply & Delivery / Construction)

    2. Loan Amount – Up to 50% of the awarded contract value depending on the credit rating of the borrower

    3. Collateral Requirement – For Fully Secured Loans: Contract and with

     1. Land Title – with Real Estate Mortgage

     2. Equipment – Chattel Mortgage in favor of RBR

           For Unsecured Loans:

     Only the expected Receivables from the Contract through an Assignment of Proceeds.

4. Repayment – Post-Dated Checks (PDCs) as payment guarantee

5. Term – Minimum of 6 months or as specified by the contract duration.

6. Balloon Scheme - Monthly interest-only payments, with the full principal amount due at maturity.

Rates varies based on risk assessment

Interest Rates  

Secured Loans:   Minimum 18% - diminishing

Unsecured Loans:   Minimum 21% -  diminishing (higher due to increased risk)

Loan Charges:

1. Appraisal Fee (non-refundable) required when a land title is used as security

2. Annotation Fee: Amount charged by the Register of Deeds, plus any related expenses (for Real & Chattel Mortgage)

3. DST and GRT

4. Service Charge – One-time deduction:

Secured – 6% upon release

Unsecured – 8% upon release

5. Life Insurance /or

6. Comprehensive Insurance or Equipment / Vehicle for Corp.

Qualification Requirements:

1. 2 pcs 2x2 or 1x1 ID Picture

2. Valid Government Photo-bearing ID with signature

3. 2 (two) Any Latest Residential Proof of Billing

4. Must be PHILGEPS Registered (for Suppliers) or the PCAB License (for Construction)

5. Current Business Permit and DTI Registration

6. Proof of Income:

2 years BIR Filed Audited Financial Statement

Latest Income Tax Return

In-house FS or Latest Interim Financial Statements

Projected Cash Flow from the Contract

7. Notice of Award & Notice to proceed or Purchase Order from a Government Agency

8. Bank Statements (last 3-6 months)

9. Signed Bank Forms (Application Form, PN, Disclosure Statements, Vouchers and Others)

10. Issuance of a Signed and Notarized DEED OF ASSIGNMENT or ASSIGNMENT OF PROCEEDS wherein, the bank becomes the  assignee and is entitled to collect payments                    from the proceeds contract.

11. Issuance of Post-Dated Checks is required as an additional security feature and mode of repayment.

12. Certification from the originating institution confirming the total contract amount and the scope of the project or services covered.

13. Registration to the PPSR System (Refer to Legal Officer for assistance)

Additional Requirements if applicant is a Corporation:

1. SEC Registration

2. Articles of Incorporation and by-laws

3. Latest GIS or Bio-data of applicant / Key officers

4. Notarize Board Resolution of authorized representative to avail a loan

5. For Corporation: A personal guarantee must be secured from the President, Key Officers, and all Directors. They are required to sign as guarantors to support the loan                     application.