SEEDFINANCE,
provides financial products through loans and investments in complementation
with technical and business development services to ensure stability and
capability and longterm sustainability.
Savings & Credit
SeedFinance
considers microfinance services as a tool for building the capacity of local
organizations to achieve organizational sustainability and deliver effective
services to their client-members.
SeedFinance
has developed its lending policies, guidelines and procedures that will apply
to all SeedFinance’s projects with credit and savings component.
1. MICROLINE
MICROLINE
is SEEDFINANCE’s basic revolving wholesale microfinance credit facility using
tiered rates as an incentive mechanism for good and excellent-performing
Partner Financial Institutions (PFIs). The special rates also allow
access for PFIs with not so impressive performances but with clear and evident
commitments and potential for growth in microfinance. These tiered rate lines
are sub-classified into DIAMOND, GOLD, SILVER and BRONZE.
PURPOSE
AND USAGE:
To
finance retail re-relending of PFIs to micro-enterprising clients
Micro-enterprise
activities eligible for funding are the following:
>
Micro-production, trading and service with at least weekly cash flow
>
Agricultural enterprises that yield weekly income cycle.
2. MICROPLUS
MicroPLUS
is a loan designed for graduating “micros” (those micro-enterprises which have
grown up and out of the micro category) of PFIs’ clients and other small
enterprises operating within the area of the PFIs’ jurisdiction. It is a
co-financing scheme where PFI and SEEDFINANCE share the risks equivalent to
their respective investments.
PURPOSE
AND USAGE:
To
finance additional working capital needs of graduating micros and small
enterprises that include:
>
Purchase of additional merchandise stocks or refinance receivables.
>
Purchase of transport vehicle, machineries, equipment, appliances, furniture
and fixtures needed by the business.
>
Construction of store or warehouse or purchase of land.
>
Renovation or repair of existing store, office, warehouse, shop, factory,
vehicle, machinery, appliance, furniture, fixture and/or equipment.
3. E-HANCEMENT
E-HANCEMENT
is a loan facility provided to PFIs for technology acquisition and enhancement
of their mobile and electronic banking services
PURPOSE
AND USAGE:
To
provide subsidy funding to PFIs for efficiency enhancement and marketability
specifically on:
>
Hosted Core Banking Services (HCBS) package.
> Investment
on ATM machines, Point-Of-Sale devices, mobile gadgets.
>
Advanced computerization – hardware and software
>
Installation of online branch network systems or mobile branch operations.
4. FINEX
FINEX
or Financial Emergency Extension is a liquidity management loan granted to PFIs
that are operating mobile and electronic banking services for its micro- and
small enterprise clients. Mobile and electronic banking services recognized by
SEEDFINANCE and eligible for FINEX liquidity funding assistance are ENCASH ATM
operation and SMART Money Center operation.
PURPOSE
AND USAGE:
To
provide back-up funding during emergency or liquidity needs of the PFI for the
following:
>
ATM operation – reloading of cash into the machine
>
SMART Money – increasing the amount in the ENCASHMENT and RELOADING settlement
accounts
5. GSL-FLEX
GSL-FLEX
or Group Salary Loan – Funds for salary Loan to Employees of Exemplary
partners, is a group salary loan offering of SEEDFINANCE to Partner-Financial
Institutions (PFIs) so as not to unnecessarily take a toll on their service
funds for personnel benefits. PFIs are encouraged to outsource salary loan
benefits to their employees to avoid conflict of interest situations.
PURPOSE
AND USAGE:
> To
provide wholesale funds for group salary loans of regular or permanent
employees of PFIs which usage is either for providential or productive
purposes.
>
Amount of salary loan to individual employees is based on the net take home pay
vis-a-vis the term of loan.
6. POWER SHARES
POWER
Shares or Preferred Ownership With Efficient Returns is the Series B preferred
Stock of SEEDFINANCE Corporation offered to PFIs and individuals with social
responsibility.
APPLICATION
OF INVESTED FUNDS:
The
strength of the partnership brings the benefits of MSME finance, advanced
technical assistance, and business development services to more than seventy
(70) partner-financial institutions and over 1.2M micro- and small-and-medium
enterprise end-clients in 11 administrative regions, 31 provinces, and hundreds
of towns and villages all over the Philippines.
Since
the mid-1990s from its inception as a micro-enterprise assistance program in
CARE, to its spin-off into the SEAD, Inc.-NGO in 2002, SEEDFINANCE has been
helping alleviate poverty by economically empowering rural and peri-urban
communities through microfinance. With the thrust towards SME finance, the
SEEDFINANCE network, with the solid financial investments of its partners in
the Corporation, takes on the challenges of innovating and taking MSME finance
and local community development to a new level.
POWER
Share investments count in the empowering work of SEEDFINANCE.
7.
SF-MAX
SF-MAX
or SEEDFINANCE Microfinance Assistance eXtras is a service that help encourage
existing SF partner- and non-partner Financial Institutions (FIs) whether MFI
or SME, or socially-responsible SME going-concern, to grow based on a
continuing development perspective. Knowing that the requirements for technical
assistance and business development services of these organizations evolve, SEEDFINANCE
responds if not anticipates and projects with the provision of advanced
technical assistance and BDS over and above the regular T.A. menu. These
interventions encompass not only regular MSME operations but even advanced
strategic marketing, product planning and development, branding, distribution
channel rationalization, advertising and promotion, operations rationalization,
financial excellence, and other value additions.
SF-MAX
is offered as a special fee-based product or service primarily for deserving,
operationally and financially-viable and qualified MSME finance institutions or
MSME-FIs and to donor-sponsored small, weak and struggling MFIs in the rural
areas. SF-MAX is seen as the testament to the serial entrepreneurship espoused
by SEEDFINANCE and its core team of expert consultants/specialists and the
catalyst for putting SEEDFINANCE into the TA-BDS map of the development finance
industry in the Philippines, or even outside the Philippines.
SEEDFINANCE
MAX is a synergy of SEEDFINANCE as an organization, its force of
highly-professional and socially-responsible serial entrepreneurs, and the
SF-MAX clients. For the sum of these parts to be greater than the whole, each
party must be aware of the respective talents, responsibilities, and voices in
the engagement.
