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State Trooper

The illogic of Filipino credit terms

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hitman

'.....make more in a month than ...........'

 

Sounds like you're  doing OK with money.  Can you just save p750000 and pay cash? 

 

Or maybe make a deal w/ a neighbor who is able to get credit.  Offer him p500 to buy a bike in his name but if course it's yours and you make the payments..... 

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miles-high

I hate to make them rich... so I have not borrowed money anywhere or bought anything on installment but quite a few auto dealers are rather reluctant to deal with us cash buyers and do not treat us well (Philippines and US)... I buy auto insurance from their affiliates but I guess that is not enough... :D

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miles-high

...my 4 kids...

Under the name of one of them, if he or she got a contractual capacity? If not, you as a guardian and/or guarantor?

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bahalina buong

 

Or maybe make a deal w/ a neighbor who is able to get credit.  Offer him p500 to buy a bike in his name but if course it's yours and you make the payments..... 

We went into a Honda dealership to buy a bike in my wife's name a few years ago and were turned down on the excuse that wife's income is not enough. Father of wife went in a week later and was approved for the same bike, and he earns about 60% of what my wife does.  Sometimes these local guys just don't want to sell us a bike.  It's their way of saving face and attempting to "get over on us."  I would suggest OP to try another dealer, preferably in a bigger city where the locals are a little more professional. 

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Humboldt

There are some Indian guys with turbans running around on motorcycle , that loan money

you can ask them their terms , maybe get it in your name ,,

My neighbor has been playing hide and seek with them for years .

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colemanlee

We have purchased three bikes, two Yamaha's and a Honda all on three months same as cash...one in my name the others in hers.

Here is what happened for each of them

1. They came to the house to make sure we lived there

2. Wife filled out a ream of paperwork

3. Whole process took two days

 

The only one we had a problem with was the Honda, and that was because I wanted it the same day...and the bank was down because of the storm...

In the end a phone call to Manila cured that problem...

 

I dont know whats different here, but we have never had a problem...we deal with BPI exclusively...and have been with them since Ive been here (5yrs)

A few months ago, maybe more like a year ago...my wife wanted to see if she could borrow money from the bank, walked in and a couple of hours later came out with a loan of 50k, which she paid of in something like two months...

 

As we type she is in the process of purchasing a six wheel Isuzu truck for the farm so far no problems...

 

Things we have done that may help others...wife got a business permit...and all the certificates that requires ( a hell of a lot of them) total cost somewhere in the neighborhood of 30k.....But now she has a registered business that actually pays taxes...an interesting note...she loans money to farmers for planting and gets paid in rice that she resales here in the city...so she can show whatever profit she chooses... we do own some land here, all legally put in her name....the only time I have ever had to co-sign anything that I can remember is when we got another power hook up.

 

When we first started dating she would go to the bank for me and have trouble withdrawing money, after a visit (from me) the trouble stopped..now a few years later, we are married and she gets treated to the VIP line or whatever they call it....I think in the end, its about becoming known in the community...or maybe its because this is a fairly small place so its easier...I really dont know, but we have jumped through all the hoops (same as the states) of showing how much money is coming in etc...  

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Jester

Think tinted windows

Wish I would have had them, very embarrassing! 

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Humboldt

Wife and I walked into the Motorcycle dealership last week to buy new Honda XR 150

sale's lady said I remember you guys from 8 yrs past ,,

 

I jumped on the new Honda 250 XR , sale's lady said Wow you look handsome  on that ..

Wife said , he will look just as handsome on the XR 150 at 83k verse 240k for the XR 250 

 

We Financed it payments at 5,500 for 1 yr ,, ,, the way I look at it is under 200 peso's a day , 

interest cost me about 1,000p a month .. 

 

better to leave my money in saving in case family has emergency , for peace of mind ....

 

good thing about Honda's they hold there value in the Philippines the 08 XR 125 is still worth half its value after 8 yrs

don't think you can do that with a rusi model

 

So we rode off 1 hr later , I did wink at sale's lady and said see ya in 8 yrs lol

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Davaoeno
But now she has a registered business that actually pays taxes

 

 

Just remember next time that sometimes its nice to have a registered business that doesnt have to pay taxes ! 

 

How to Apply for Certification as a Barangay Micro Business Enterprise (BMBE)
 
 

Any person, natural or juridical, cooperative or association, or business entity or enterprise engaged in production, processing, manufacturing of products or commodities, including agro-processing, trading and services may apply for Certificate of Authority as a BMBE provided that they should have at least a total asset value, including those arising from loans but exclusive of the land on which the particular business entity’s office, plant and equipment are situated, of not more than Three Million Pesos (P3,000,000.00) .

In order to secure a BMBE Certification, the following must be submitted:

1. Duly filled up and signed Application form in triplicate

2. Three passport size pictures

3. DTI registration for sole proprietorship; SEC registration for corporations, partnerships or association; CDA registration for cooperatives

4. Mayor’s permit

These documents must be filed with the Office of the Treasurer of each city or municipality, after which shall, the said office will register the BMBE’s and issue a Certificate of Authority to enable the BMBE to avail of the benefits under the law.

It takes approximately fifteen (15) working days upon submission of complete documents for the whole process.

The Certificate of Authority shall be effective for a period of two (2) years, renewable for a period of two (2) years for every renewal.

he benefits of a BMBE are as follows:

1. Exemption from income tax arising from the operations of the enterprise.

2. Exemption from the coverage of the Minimum Wage Law, provided, that all employees covered under this Act shall be entitled to the same benefits given to any regular employee such as social security and healthcare benefits.

3. Access to financial assistance by designated financial institutions.

4. Access to training and technology transfer assistance by the government

This is how to secure a Certificate of Authority as BMBE in the Philippines.

 

http://ndvlaw.com/how-to-apply-for-certification-as-a-barangay-micro-business-enterprise-bmbe/

Edited by Davaoeno
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Monsoon

Listen me also three cars financed here all in the wife's name,that's just t

My experience has been just the opposite of many here.

 

I have never wanted to finance a vehicle but am sure I could without issue. I do have a mortgage on one of my properties. This was obtained very easily and required only one trip to the bank, to sign the papers. In fact that was the first and only time I've ever been inside one of their branches as I hadn't done any business with them before. They were just the best rate at the time I shopped.

 

I have had no problems getting credit cards in my name. My wife is an additional card on our credit cards issued by Philippine banks, I am the primary.

 

In fact the first credit card I had here in my name was issued when I was on a tourist visa. Branch managers at BDO bank do in fact have the authority to issue credit cards.

 

I use Philippine credit cards for convenience only. You don't want to get in the habit of carrying a balance in them. The rates are horrific.

 

I would say if your bank isn't providing you with the services you need, shop around for a new bank. The Philippines does do some things the old

fashioned way, so being introduced at a bank by a respected customer does give some mileage.

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contraman

 

 

In fact the first credit card I had here in my name was issued when I was on a tourist visa.

Likewise, as previously mentioned in similar topics.

I have a BDO Visa Card and have always been on a Tourist Visa.

 

However, I do believe that those from the USA many have now additional hurdles due to some strange

USA reporting requirements  :idontknow:

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Monsoon

Likewise, as previously mentioned in similar topics.

I have a BDO Visa Card and have always been on a Tourist Visa.

 

However, I do believe that those from the USA many have now additional hurdles due to some strange

USA reporting requirements :idontknow:

Philippine banks are some of the few who are willing to put up with the red tape and attempt compliance. They have too many dual citizen customers I guess.

 

Most of the rest of the world doesn't want to bother with US citizens unless it involves a substantial sum of business.

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seanm

I am trying to figure the credit situation out. 

My girlfriend bought a scooter with like 10k down and it has like a 3k a month monthly payment. She has been paying it off for like a year and a half now. She just showed that she was making 300 pesos a day, but at the time she only worked like 3 days a week, so the odds of her having enough to pay that was very slim, but they gave it to her. 

Now, I was thinking of trying to buy some more things on credit. 

Does anyone have much experience with this? I am pretty sure there is no kind of credit bureau in the Philippines so I am wondering what they are looking for. 

Edited by seanm

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SkyMan

If you have eligibility to join Navy Federal Credit Union.  I got the loan for my Ranger through them.  They had no problem with me buying it here and sent the check in my name to cash and exchange well before the truck arrived in Manila.  They would have given me enough to buy the high end model even though I only ordered the base model.  They basically took my word for how much I needed.  My pension and the payment are in $ so no exchange rate affect.  2.9% is like free money.  

USAA would also finance a vehicle here but they insisted on sending a check made out to the dealer in their name after the truck arrived and then the dealer would have to deposit the check and a month later maybe I'd have my truck.  I didn't like that and I'm not sure if the dealer would have gone with it either.  USAA also wanted be listed as lienholder on the CR which is kind of pointless as they wouldn't be coming here to repo it and it would lead to future hassles getting that off after the truck is paid for.  I just sent NFCU a copy of the purchase order and they were happy with that.

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Jawny
8 hours ago, seanm said:

I am trying to figure the credit situation out. 

My girlfriend bought a scooter with like 10k down and it has like a 3k a month monthly payment. She has been paying it off for like a year and a half now. She just showed that she was making 300 pesos a day, but at the time she only worked like 3 days a week, so the odds of her having enough to pay that was very slim, but they gave it to her. 

Now, I was thinking of trying to buy some more things on credit. 

Does anyone have much experience with this? I am pretty sure there is no kind of credit bureau in the Philippines so I am wondering what they are looking for. 

I don’t use credit terms for purchases for myself, but on occasion my wife has used the credit system on behalf of a family member.  In effect, she bought something on the retailers conditions for time payments and the relative made the payments. The relative had the ability to pay, but didn’t meet the requirements for the sale conditions.  From those experiences, one thing we realize, credit is costly.

If you choose to buy in credit terms, be sure to check the total you’ll be paying.  An expensive item can end up costing around 20% or more extra than a cash purchase. A ₽50k television can end up costing ₽70 or more if bought on credit terms. 

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