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SMEs, which stand for small and medium
enterprises, have important role in the nation’s
productivity and increase of wealth. A small enterprise
has ten to ninety nine employees, which has 1.5million
to 15million in assets. Medium enterprises on the other
hand, are those enterprises with 100-199 employees and
have more than Php15million to 100 million in assets.
To fully make these SMEs help in the growth of the
economy, the nation needs to help them also in making
their business grow, by lending to them through
different sources. By making funds available to the
SMEs, the nation gives these SMEs more flexibility
and
significance for their investments. That is why SME
loans are created, to be able
to help SMEs in achieving
their business goal and as well help the economy.
SME loans cater to small and medium enterprises. SME
loans are designed to help finance the needs of small
and medium capitalist in the country to help uplift the
ailing nation. |
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| SME loan can be for financing
the starting capital of a new business. In simple words
a new entrepreneur wants to put up a business, and
therefore needs capita. SME loans can also be used for
purchasing of supplies and equipments. Either additional
equipments for business expansion or part of starting
plan of the entrepreneurs. Another is that SME loans can
also be used to finance expansion of business
enterprises. That is by putting up additional capital,
supplies and equipment or by branching out of some
business to other areas.
SME loans are very useful for small and medium
enterprises as they increase entrepreneurs’ potential
for productivity. If there were more outputs that a
business produces, then there would be possible increase
in sales too. A possible increase in sales means
increase in income too. A chain reaction, of course then
it will lead to the economy of nation being benefited.
Because as businesses continuously expand, there will be
demand for jobs. So here, it is clearly stated the major
advantages of SME loans. If it weren’t for SME loans,
the impacts of loans on the business sectors, as well as
job market would be reversed.
So SME loans in conclusion, not only help enterprises,
but other entities as well.
SME loans can be acquired foremost from the government
sector, the Department of Trade and Industry (DTI). DTI
of course helps in the improvement of the nation,
especially in nation’s industry. DTI then knows the
implications of these SME loans to the trade and
industry of the nation. That is why DTI is in effect
making funds available to small and medium enterprises
through SME loans. DTI is actually open for free
counseling and seminars at their office on Makati city.
SME loans are explained well there for businessmen,
small and medium alike to be more aware of the
advantages they can get from the SME loan.
Other sources of SME loan are banks. Most common of all,
banks provide SME loans because banks also help in
promoting the development of the nation through increase
in commerce and entrepreneurship.
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