Franchising and marketing guru Samie Lim has urged government to require banks to dedicate a portion of the 10 percent mandatory allocation from their total loan portfolio for small and medium enterprises to franchise financing stressing that franchising is a better solution to help the country get out of the global crisis quicker than the rest.
Lim told Business Bulletin that the government does not really have to come up with the stimulus package just the wise implementation of present laws.
Lim pointed out that the Magna Carta for MSMEs (micro, small and medium enterprises) provides that banks should allocate 2% and 8% of its loan portfolio to micro and small and medium enterprises respectively.
“If I may put forward a proposition, I would like to see banks allot part of this 10% portfolio for a window dedicated to franchise financing. This can help the Philippines get out of the woods quicker than the rest,†Lim said.
Lim has also addressed the concerns of banks’ hesitance to let go of their cash to SMEs. Continue reading.