An export promotion scheme that has already proved popular in Manila is being extended into more areas of the Philippines. Exporters in Cebu can now access long-term loans without collateral through the Trade and Investment Development Corp of the Philippines (Tidcorp) Medium and Long Term (MLT) Direct Lending Programme.

L/Cs can secure short term funds

This scheme complements a short-term lending programme in which Tidcorp-Cebu provides export trade finance guarantees and revolving export loan guarantees to clients without collateral. In this programme, exporters can access loans provided they can produce a deed of assignment from the bank saying a purchase order, letter of credit or sales contract will be assigned to Tidcorp.

Longer-term finance through the MLT programme might be used by exporters to purchase machinery or equipment, acquire or construct plant or buildings or for permanent working capital.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.