Development Finance
Access to Capital and Enterprise Development

Five Windows of Access to Capital

1. Microenterprise Financing – HUBLAG provides working capital or fixed asset investment assistance to microentrepreneurs and farmers with one year business experience for projects that show debt service capability.  Income generating projects are evaluated on income performance per business cycle and security comprised of the client’s valuable possessions.
2. Cottage Scale Business Financing – Microentrepreneurs who show profitable operations as well as farmers with tilled area of above four hectares who need to expand can borrow from Php30,000 to Php200,000 for cottage scale businesses and up to Php40,000 for farmers.  The criteria are more stringent and include reviewing their competence in planning for expansion.  Additional and preferably, hard security are required.
3. Providential Financing – Public and private employees require funds for regular lump sum disbursements of a providential nature that their monthly income cannot cover.  HUBLAG provides fund advance secured by only 50% of their salary over six to twelve months.
4. Quick Cash – Quick cash in one hour, upon compliance with simple requirements, helps the poor who are often faced with emergencies that demand instant funds such as medical emergencies or calamities that destroy farms and homes.  This facility can be accessed for a consideration of the client’s cash convertible assets or equivalents.
5. Pension Financing – Retirees have access to funds for their second careers as microentrepreneurs or farmers or for home improvements and even their grandchildren’s education.  Window 5 provides retirees with four to six months financing to the extent that can be amortized by the pension’s value net of basic household expenses.

HUBLAG seeks the sustained financial progress of its clients and their graduation from micro enterprise to small business loans.  The validity of HUBLAG’s approach is seen through real-life success stories:  one hectare-tilling farmers are able to acquire rights to till additional areas, mere backyard hog fattening projects are now raising sows for piglet production; small hardware stores have grown into mini-lumber and construction supply marts; a one-branch feeds and fertilizer retail business has expanded into a wholesaler with three retail outlets, a pina fiber micromanufacturer previously catering to local markets has increased production capacity to service export markets.  The fact that HUBLAG’s clients have been able to afford power and water supply, or the education expenses of their children until they graduate or find gainful employment, are indicators that HUBLAG’s assistance is an effective catalyst for development.

More:
Overview and History
Major Accomplishments