This facility provides medium or long-term financing to clients and may be granted to provide funding for the following:
1. Fixed Asset Financing
Acquisition of equipment or other capital assets to be secured by the object to be financed.
Construction and/or improvement of client's fixed asset/s that may contribute to the expansion and improvement of their business and will be secured by real estate and/or chattel mortgages.
2. Working Capital Financing
This facility provides clients with a source of funds to finance their permanent or short-term working capital requirements.
2.1. Credit Line
LBP Lease provides credit lines to clients to finance receivables and/or purchase orders or contracts. Omnibus credit lines may also be granted where collaterals or security are available.
2.2. Permanent Working Capital Financing
Permanent Working Capital financing may be used to provide minimum level of working capital necessary for continuous and sustainable operation to carry on a business for clients who experienced certain changes in business or financial condition (e.g. increased business volumes/sales, change in credit terms of receivables, etc.). It may be use for reprogramming of cash flow, acquisition of inventories and other investment requirements of the client to ensure continuous business operation.
3. Receivable Discounting/Purchase
Financing facility that provides client with working capital to improve liquidity through the discounted purchase of receivables due in the future on a "with recourse" or "without recourse" basis. The trade receivables must be duly acknowledged/confirmed for products or services duly delivered and accepted and not in arrears. It is granted to clients that can authorize the Corporation to collect for and in its behalf from the obligor. The obligor, on the other hand, must confirm to the assignment and agree to remit payment/s only to the LBP Lease. The excess of collection from the obligor shall be refunded to the client.