What Have You

Recently, my conversations with my wife revolved around business(es). We have small businesses in line with schools items like ID cards and t-shirt printing. However some problems with these businesses are the seasons when they are in demand. Manufacturing of ID cards are usually hit school openings. T-shirt printing only becomes juicy when school Intramurals get near (usually between August and September). Also, we do not print shirts ourselves. We hire a sub-contractor to do it and we only get 20-25% of the profit.

With this in mind, we are planning to “upgrade” and have our own machines, tools and equipment to print shirts, banners, flaglets, etc. However, just like small entrepreneurs in the Philippines, our worst nightmare is the availability of capital. Cost-benefit analysis shows that the benefits of engaging in business which require huge amounts of money (250K-up) are also huge in the long run. The cost is what bothers us at the moment.

This leads us to one last resort – borrow money. My relatives are capable and can provide the needed capital if they were only my friends. Unfortunately they are not Filipino culture suggests that in most cases, it’s better to ask for financial help from friends and lending institutions like banks and “Bombays” than one’s own relatives. Friends are out the picture as well as “Bombays”. They can’t shell out the needed amount. Only banks remain in the picture as they are the only institution capable of lending us the capital that we need.

The problem with banks in the Philippines is the high interest rates they put on mortgages. Hence, businessmen who really need capitalization are forced to accept banks’ terms in their bid to sustain their established businesses or start a new one. Well, as they say, you have to spend money to earn more money. Maybe the only way to do it is to subject yourself to banks policies and provide the necessary documents of real properties previously owned to secure a bank loan even when the interest rates are already exorbitant. Wheww!!! Inflation at its finest. I’m not even sure how well will my new business perform.

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