»Financial Facilities

FINANCING FACILITIES

Financing Facilities

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.

    The basis of the discounting (amount discounted) shall be the face value     of the receivables less the required yield. Interest shall be computed on     the amount discounted and deducted in advance from the amount     discounted.