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Frequently Asked Questions about OFW Loan (Which are Asked by OFWs)

Every year, the total amount of remittances sent by OFWs is worth billions of dollars. This created a positive impact in the Philippine economy, which is why OFWs like you are regarded as modern heroes or “bagong bayani.” 

Here’s the thing: despite earning in dollars, there are still instances when you need to borrow money to finance big purchases such as purchase of a car or your dream home. Before you apply, we list down the common questions asked by many OFWs when it comes to applying for an OFW loan:

1) What is an OFW Loan? 

An OFW Loan is a type of loan facility specifically designed to meet the financial needs of OFWs. It can range from business to personal loans, but the common denominator is that it is intended for the benefit of OFWs.

2) Who is qualified to apply for OFW Loan? 

Since it is specifically geared for OFWs, the individuals qualified to apply for this type of loan are the following:

  • First-time OFWs
  • OFWs with existing contract abroad but are only here in the Philippines for vacation
  • Returning overseas workers or Balik Manggagawa

Take note that some lenders require minimum monthly salary, so make sure you inquire about it first before submitting your loan application.

3) What are the requirements I need to submit when applying for an OFW Loan? 

Every lender has their own set of requirements. Nonetheless, make sure you prepare these documents to facilitate faster approval of your loan application:

  • Philippine passport or Seaman’s Book for seafarers
  • Employment contract validated by the POEA
  • Working visa
  • Overseas employment certificate (OEC)
  • At least one government-issued ID (in lieu of the upcoming OFW ID)
  • Ticket or flight details

4) How much can I borrow?

The loan amount depends on the lender. Many lenders set a minimum amount of P1,000 and a maximum amount of as much as one million. Nonetheless, this doesn’t mean you can get a maximum amount every time you apply for a loan. Lenders still look at your credit history and capacity to pay, which they will use as a basis for your credit amount.

5) How long can I pay for the loan? 

That will also depend on your agreement with the lender. You can borrow money and pay it after 30 days. On the other hand, you are allowed to pay the loan for up to 12 months.

6) I’m about to leave the country. Can I still apply for an OFW Loan?

Of course! In fact, lenders prefer that since you are still here in the Philippines and capable of physically signing the loan documents. A small request, though. If you can, please apply at least 15 days before your scheduled departure to make sure that the application process will proceed smoothly and you can get your money before you leave.

7) Can I apply for a loan while I’m working overseas? 

This will depend on the lender. Here in Balikbayad, we require you to be physically present to be able to sign the documents. Other lenders accept Special Power of Attorney where you will assign any of your family member as your attorney-in-fact. If possible, you can execute the document before you leave and have it notarized, otherwise, the SPA must be consularized.

Read more about Special Power of Attorney here.

8) How long is the application process?

Lenders understand the urgency of your cash needs. That is why many lenders like us are committed to processing your loan application within one banking day. On the other hand, some lenders, especially commercial banks, look into your credit history first before they can extend credit. This will take days to a week or two, depending on the lender.

9) What if I don’t have a property under my name. Can I still apply for a loan? 

The answer is yes. There is a facility called non-collateral loan, which allows you to borrow money even without property under your name. This could mean higher interest rate as a form of guarantee.

Another option would be applying with a co-borrower. A co-borrower is someone who will guarantee your loan and will be contacted by the bank in case you are unable to pay your loan.

10) What should I do to guarantee loan approval? 

  • The information you provided in your loan application must be complete and correct.
  • No history of past due debts, negative findings, and other money-related court cases.
  • Borrow money that is within your salary or capacity to pay.
  • You must provide all documents needed to prove your capacity to pay the loan.
  • Establish your beneficiaries of the loan.

11) What are the modes of payment? 

You can pay your loan via post-dated check or direct deposit to account. If you will apply in banks, most of them will recommend (if not impose) automatic debit arrangement since it is easier and more convenient. No reminders will be sent since the system automatically deducts the amount from your account (so make sure you have sufficient funds every month).

12) Where can I use the proceeds of my OFW Loan? 

Ideally, it will depend on you and your needs. You can use the proceeds of your loan to start a small business, finance immediate and emergency needs, renovate your home, or even use it as a downpayment for a major purchase. Nonetheless, you have to be clear on your purpose. Some lenders don’t allow the funds to be used to pay for placement fee and other fees related to applying for a job abroad. Ask your lender first to be sure.

Got more questions? Let us know by leaving a comment below. 

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Tips, Tricks, and Anything in Between When It Comes to OFW and Budgeting

OFW and BudgetingWe always emphasize the importance of saving and preparing for the future. After all, you can never be an OFW forever, which is why it is important to strike while the iron is hot and make the most out of your stay abroad, especially when it comes to boosting your savings.

Before you increase your savings and set aside a portion of your salary for investment, you need to start with the most basic: budgeting.

Budgeting is a process of allocating funds on specific expenses. This helps you get the most out of your money because you were able to specify how much goes where. This will help you make the most out of your money and ensure that a portion of your monthly income will also go to savings, which might come in handy in the future.

Sit tight and find out the how, what, and why of budgeting for better savings.

Step 1: Know your numbers. 

Before you start budgeting, you need to know how much you are earning. In fact, this is the first thing you need to do before you create a budget plan.

What exactly do we mean by numbers? This should include your net monthly income, expenses, and any existing debts. If you are earning something extra, then make sure you include it too. Be honest to yourself when it comes to numbers then move on to the next step.

Step 2: List and then create your budget plan. 

Now that you know where you stand in the money scale, the next thing you should do is to list all of your expenses every month – and make sure you use accurate descriptions for them.

There are two types of expenses:

  • Fixed or Non-Negotiable – These are expenses that don’t change every month such as rent, transportation costs (in case you ride the same bus everyday), and amortization.
  • Flexible – This type of expense vary every month such as food, utilities, and amount of remittance you send back home.

Income for the month

 Fixed Expense

Flexible Expense
Work
Extra Jobs
Total Total Total

Be realistic as possible and allocate the portion of your salary for corresponding expense to help you check how much is left. This will be your guide as you go through your day.

You might ask, “how can I make sure that this budget plan will be properly implemented?” Don’t worry. The next step is the answer.

Step 3: Determine your budget strategy. 

There are many ways to help you stick to your budget. You can try the following strategies:

  • Percentage system – This is where you use percentage as a guide. For instance, you can try 60-20-10-10 wherein you break down your salary according to that allocation.
  • Envelope system – The concept is the same with percentage system, but this time, you use envelopes to set aside a portion of your salary for each expense. One envelope is assigned for each expense to make tracking easier.
  • Pen and paper – This is the old-school-but-still-effective way of budgeting. To make it easier for you to budget, you can use columnar notebook and list down how much money you have at the start of the month versus the expenses for every month.
  • Budgeting tools – If you want flexibility in tracking your budget, you can use budgeting tools like mobile apps or even Microsoft Excel to help you create a budget plan. The good thing about going digital is that it is easier for you to adjust your monthly budget, which leads you to the next step.

Step 4: Keep it flexible.

We understand that you want to stick to your budget as strictly as possible. In fact, that is the whole essence of budgeting because it makes it easier and more possible for you to increase your savings.

Still, leave room for some flexibility; hence the column for flexible expenses. Someone back home will celebrate birthday or you will need to send money because of an emergency, which is why it is important that your budget can accommodate those sudden expenses.

Step 5: Stay on track and keep it updated. 

It’s not enough that you create a budget plan. It’s just one part of the entire budgeting process. The key here is how you stick to it by keeping your budget plan updated.

Set aside a certain time of the day, say few minutes before you go to bed, and list down everything you earned and spent. Make sure you include ALL, no matter how small or big the amount is. This way, you can easily track expenses you can forego and there is a lower possibility that you might forget something, which could affect the credibility of your budget plan.

Budgeting can be tedious in the beginning, but the return is worth it. Take time to sit down and assess your budget. This will make it easier for you to determine whether you can accommodate a loan in case you need to get one.

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Travel Loan: Should You Get One to, uhhh, Travel?

We all have our own personal needs. For every need, there is a type of loan that specifically addressed that need. One of them is the need to travel; hence the travel loan.

Travelling is a luxury. Aside from being able to go to a different place and experience different things (including food), you spend certain number of your days not working. Nonetheless, it’s a time well-spent with the family and you are only making the most out of your stay here in the Philippines.

Here’s the thing: can your budget allow you to travel? Even if you can, will you still have sufficient funds by the time you go back abroad? This leads you to the next question: should you apply for a travel loan in order to travel?

Check out these factors you need to consider to help you decide whether getting one is worth it:

Travel Factor No. 1: The need to borrow

This is the first factor you need to look into before you apply for a loan.

Travel loan can be convenient because it allows you to increase your buying power when going somewhere. On the other hand, do you have sufficient funds and steady income to pay for the loan? If not, perhaps it is best to postpone the trip instead and save up for it later.

Travel Factor No. 2: An existing credit card

Let’s say you really want to travel with your family even if it’s only here in the Philippines. Fine. Instead of getting a loan, do you have an existing credit card you can use to finance your travel expenses?

Travel loan may have lower interest rate compared to credit cards, but keep in mind that credit card companies give out perks and benefits to its clients. Check out their partner establishments for hotels, restaurants, and other recreational facilities and take advantage of them.

Travel Factor No. 3: Current financial situation 

Apart from your credit card, if any, you also have to look into your current financial standing. This means you need to check and evaluate how much you are earning and spending every month. You also need to take note of any existing loans and employment status in relation to the current situation of the country where you are working to make sure you can pay off your travel loan.

This is why it is important to create a budget. It will make it easier for you to check how much money is going to specific expenses and help you decide whether you can still accommodate another loan.

Travel Factor No. 4: The loan terms

Assuming that your salary allows you to get a travel loan on your next trip back to the Philippines. This doesn’t mean you will automatically apply for a loan.

Check out the interest rate and consider the lender that offers low rates. Clarify whether the loan is secured or unsecured, since unsecured ones may have higher interest rate, although it will protect your assets against possible foreclosure. Aside from this, make sure to ask about repayment terms. As a rule, travel loan must be repaid in less than a year, so make sure you negotiate the terms well.

Travel Factor No. 5: Your destination

Where do you plan to go with your family? Many OFWs opt to travel in the Philippines with their families to cure homesickness while there are still others who prefer bringing their family overseas.

Regardless of where you plan to go, it is a must to anticipate your expenses to help you determine whether getting a travel loan is necessary. If you plan to go overseas, how much is the air fare, hotel accommodation, food, exchange rate, and transportation expenses when going around the city. If you wish to stay here, gauge how much are the transportation costs, hotel accommodation, and food among others. Make sure you have enough cash to cover for these expenses.

So, is it advisable to get a travel loan? That depends on you. No one can stop you from borrowing money to give your family a grand vacation, but make sure to remember these three things:

  • The amount you will borrow should cover only the essential costs.
  • There will be an interest on top of the amount you will borrow.
  • Despite the availability and accessibility of travel loan, make sure to travel within your means.

After all, you don’t want to waste few years paying for a one-week vacation, do you?

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Start Investing with Only P10,000 in Your Wallet

There are many reasons why Filipinos are not investing. Aside from lack of financial literacy, one of the common reasons why Filipinos don’t invest is the lack of money.

What if we tell you that you don’t need hundreds of thousands to start investing. In fact, you can have as little as P5,000 or even P10,000 and you can grow your money in no time – assuming you made the right investment option.

Is that possible? The answer is yes and we will tell you how.

1) Start by knowing and educating yourself about the different investment options available. 

You only have P10,000 and you need to make it work. If you are serious about investing, start looking at the different investment options available that will fit your budget. This includes:

  • Unit Trust Investment Fund (UITF) – This investment options gathers funds from different individuals to create a larger fund managed by professional fund managers of the bank that take advantage of economies of scale. This is ideal to help you achieve mid- to long-term goals.
  • Mutual Fund – Similar to UITF, but this is often issued and managed by investment companies.
  • Stocks – This option allows you to buy shares from a particular company, thereby making you a part-owner. COL Financial is one of the top brokers that allows you to invest in stocks in as little as P5,000.
  • Time Deposit – The interest is slightly higher than savings account wherein your money is “put on hold” for an agreed term. Learn more about time deposit here.
  • Small Business – It can be in the form of a sari-sari store or starting your own craft or food business. If you are willing to shell out few more thousands, you can be a franchisee.

It is important that you read up and learn about the different investment options to help you not just decide but also understand how they work.

2) Identify your investment goal. 

It’s not enough that you know what kind of investment tool you will use to grow your money. You also need to identify your investment goal or where you plan to use the money you will earn.

Do you plan to open a small business? Do you want to buy a car or house for your family? By knowing your investment goal, it will be easier for you to choose what type of investment you will avail in order to achieve that goal.

3) Choose the right partner. 

Financial partner, that is. There are many banks and investment companies that offer investment products that promise to grow your money. Before you decide on who will help you achieve your financial goals, make sure you check the institution’s background, track record, and performance first. These factors could help you decide whether it is safe to seek help from these institutions in not only securing the money but also making it grow.

4) Add more, if you can. 

Don’t just limit yourself with P10,000. As much as possible, aim high and aim for a little bit more than your initial investment.

Instead of sending 90 percent of your money back home, allow 50 percent only for remittance and the rest for savings and other equally important expenses. The bigger your money, the higher the return will be and the faster it will be for you to achieve your investment goals, which leads you to this next tip.

5) Go long term. 

The secret to growing your money? Aim for long-term investment.

You might be excited to see your money grow, but keep in mind that many investment options such as time deposit is compounded. This means if you place P10,000 in a time deposit for six months with 5 percent interest, after six months, the earnings you will gain will be added on your P10,000. If you wish to continue for another six months, your P10,000 + earning will earn another 5 percent.

The bottom line is this: don’t let that “no or little money” excuse get in the way of investing. No amount of money is too small when it comes to investing – as long as you start early and you choose your investment option wisely.

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Things You Shouldn’t Splurge On If You Want to Increase Your Savings

Many OFWs feel guilty for leaving their families behind in exchange of good life. To make up for it, many of you resort to material things and buying all the bilins as your way of showing your love.

That’s fine, as long as you do it occasionally. The problem lies when you send a balikbayan box to your family once a month (or once every two months) that is full of goods. Sure, you were able to appease your family, but what will be the effect of your purchases on your bank account?

The key here is to be wise with the items you need to buy. If you really want to retire early, then make sure you avoid splurging on these items:

1) The latest gadgets – Do you really need to buy the latest iPhone when you only bought one few months ago and the difference is the camera’s megapixels? It’s okay to buy gadgets, but if you will do it after every few months or if the existing gadgets are not yet broken, then these items are not worth splurging, even if they cost lower abroad than in the Philippines.

2) Too much cosmetics. Unless you plan to sell it for additional income, it is advisable to take it easy on makeup and other cosmetic products. Cosmetics have a short shelf life, which means they are not meant to last long, especially once it is opened. Plus, your wife doesn’t need a dozen of lipstick and surely, your daughter doesn’t need to wear one, especially when in school.

3) Food available in the Philippines. There’s a buy one, take one of chocolates and canned goods, so you bought tons to give it out to friends and family. The promo can be tempting, but it turns out that you can buy all those items in the Philippines too – and yes, it can be a waste of money. If you want to buy consumable items, make sure it is not available in the Philippines – but take it easy on your purchases, please.

4) Common pasalubong items. Keychains, generic shoes, shirts in different sizes, and fridge magnets – these are some of the common items you buy when you go home and to be honest, you don’t need them. Even if your intention is to give something to your family and friends, there is a chance that they won’t use it too, or at least treasure what you gave. Save yourself some time – and cash – and minimize buying for other people.

5) Expensive or trendy shoes and clothes. They may be in or they have “yabang” factor, but does your family really need them? One or two expensive shoes is fine, but buying them all the time can hurt your savings. Plus, it is something they won’t use forever, so what’s the point of spending on them?

The bottom line: Take it easy on your spending. It’s okay to buy pasalubong for your family, but don’t spend your hard-earned money worrying about your extended family and friends’ bilin. If you want to increase your savings, then you have to be wise with your spending.

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What You Need to Know about the Special Power of Attorney

One of the most common questions asked to us is the process of applying for a loan when you are abroad. Many lenders require the OFW-borrower to be in the Philippines because of the documents that needs to be filled. Nonetheless, they understand that time is not on your side and there is a possibility that you have to go back in the middle of the application process or even before the funds are released.

What can you do? The lenders will ask you to sign a Special Power of Attorney or SPA.

Special Power of Attorney, simplified 

By definition, SPA is a type of legal document that allows you to appoint and authorize a person or an organization to handle your affairs when you are unavailable, unable to do so, or in your case, while you are abroad. The person you will assign will be called attorney-in-fact or agent and he or she will transact on your behalf.

Who can be your attorney-in-fact?

The answer is anyone, as long as you can trust him or her. He or she can be your spouse, any one of your parents, child above 18 years old, or a trusted friend or relative. There is no limitation as to who you can appoint, but make sure that person is honest and trustworthy since they are representing you.

Does the SPA have to be notarized? 

The general rule is no, the Special Power of Attorney need not be notarized to be valid; however, this rule applies ONLY when you executed the SPA in the Philippines.

What if you are abroad? Then the document must not only be notarized but also be consularized. This means the Philippine Embassy or Consul in the country where you are assigned duly certified and authenticated the SPA you executed. Otherwise, the SPA will not be binding and the lender will not allow anyone to process your loan application in the absence of this document.

For SPA to be consularized, you must comply with the following requirements:

  • Holder of Philippine passport, with the first and last page photocopied.
  • Presentation of any Philippine government ID in the absence of passport (please confirm this with the Philippine Embassy since some may require both passport and ID).
  • Personal appearance.
  • Two witnesses of legal age, who must accompany you in the Embassy to personally witness the execution of the SPA. Take note that the witnesses must also present proof of identification showing that they are of legal age.
  • Payment of notarial fee, which will vary per country.

Even if you assigned someone to transact on your behalf in connection with the loan, take note that the powers and duties are still limited. Your attorney-in-fact may receive the loan proceeds and sign documents on your behalf but s/he cannot sell any of your assets.

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6 Tips on How OFW Parent can Teach Money Management on their Kids

Parents are the kids’ first teacher. Being their first teacher, you are tasked to teach not only the basic knowledge they will need in school such as letters and numbers but also life skills and values they will need later on in their lives. This includes money management.

If you are an OFW parent, this is something you need to work on with your kids even if you are miles apart. This is because the financial success as a family will depend not just on you and how you save but also how your family, including your children, treat money. You need to impart the value of money on your children not only to allow them to buy what they want but also for their future.

You might ask how. You can try these tips:

1) Always start with a piggy bank. 

You can never go wrong with the good ol’ piggy bank. In fact, this is still the most basic way to teach kids about money and saving.

Give them a piggy bank – and make sure it is something they cannot easily open to prevent any form of temptation. This way, your children will realize and understand how to grow money and at the same time, teach them the concept of saving. At the same time, you teach your kids the importance of safekeeping money.

Tip: Let your child choose his/her piggy bank. This could encourage your child more to fill it up if they like what they’re seeing.

2) Minimize monetary reward. 

Your child helped in washing the dishes or cleaned his room. That means P50 each for every chore done and that will keep your child happy.

It’s okay to give monetary reward to your children for every good deed, but you are not really teaching your kids the importance and value of money. Instead of understanding the life skills you want to impart on your kids, their main motivation is money.

What you can do is to set a positive reward system for every good deed. For instance, every chore done equates to one star and 10 stars mean they can get an item they like that will be included in the balikbayan box.

3) Try delayed gratification. 

Let’s say your son wants a new rubber shoes, which is not yet available in the Philippines. To make up for the time lost, you decided to buy it on your next payday and send a package back home.

Unfortunately, this is not the best way to go. To teach the value of money, you need to practice delayed gratification.

“10 sleeps seem like eternity for them,” you might say. That’s true. What you can do is to make a compromise with your kids instead of giving them what they want immediately. For instance, if they can save P100, you will give them P200 to match their savings. It’s hard to explain, but kids will realize the importance of money if you don’t easily give in to their demands.

4) Make the most out of your vacation by teaching them about money. 

Read stories about money, including stories about successful entrepreneurs who started from scratch or OFW-turned-businessmen. You can also tour the Bangko Sentral ng Pilipinas museum to give them a better understanding of money while showing them the evolution of peso throughout the years.

Another activity you can try is to go to the grocery with your kids. Give them a budget (preferably not more than P300) and let them buy what they want as long as it is within the given budget.

Visiting a bank is also a must if you are in the Philippines. This can be a good way for your child to observe how money is kept and the different products offered to help people grow their money.

5) Keep them involved in the budget. 

Budget is a collective effort and is something shared with every member of the family. Before you leave for work abroad or during your stay in the Philippines, make sure to sit down as a family and discuss how the family budget will go. Listen to what your kids have to say as well and explain why you can’t consider their input, especially if their suggestions are not necessary (for instance, weekly eating out).

Let the voice of your kids be heard.

6) Set a good example. 

Children learn by example. Before you teach them about money and savings, make sure you show them how these concepts are applied in your daily life. Don’t expect them to save if you constantly send them a balikbayan box full of goodies. If you want them to embrace the value of money, show and live a prudent and simple life.

Being a parent is not easy, especially if you are miles away from your family. Nonetheless, don’t use it as an excuse for poor money management. Everything starts from home so be a good example.

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5 Tips on How to Get the Best Deal on Your OFW Loan

Most people think that if someone in the family works abroad, life is easier and better. After all, someone is earning in dollars (and we know how much the exchange rate is now, which is currently at P50 mark as of this writing). When you earn in dollars, this could mean you and your family can easily afford anything you like, or at least according to their expectations.

On the other hand, lenders, both commercial banks and private financial institutions, realize that not all OFWs are living the good life. In fact, there are still many who are having a hard time, especially in the financial aspect. This is why they offer various products specifically for OFWs – with perks.

Here’s the challenge: finding the best deal on your loan, regardless of the kind of loan you are getting.

Here’s what you can do to make sure you get the best deal every time you apply for a loan – and make the loan work for you:

1) Always submit the requirements needed. 

You have the tendency to blame the lender for not immediately processing your loan. Aside from processing tons of loan applications in a day, one of the reasons why there is delay is because you did not submit all documents required.

If you want to speed up the processing of your loan application, then make sure you submit everything they ask for. The same goes for online application.

2) First, compare and then decide. 

It’s okay to ask recommendations from friends about the best lenders in town. Before you say yes to a specific lender, make sure you explore your options first.

Use the Internet and look for lenders that offer the loan facility you are looking for. Many lenders post their rates and charges, so make sure to take note of that. Don’t forget to check the “Review” section to see what other clients are saying.

Tip: Look for loan comparison charts or tools similar to this one. Through this, you can easily see how much every lender charges and help you decide which lender you can afford.

3) Know how much is your capacity to pay.

One of the common mistakes made by OFWs when applying for a loan is asking for too much. This means when you are earning P40,000 every month and owns a property worth P300,000, you will ask for a million-worth of loan. That is outright rejection since lenders will be concerned on how you can pay for the loan.

Before you apply for a loan, make sure you check on your finances and savings first to determine how much you are worth. Any existing debt, whether from credit card or other loans, must also be included since they could affect your cash flow and capacity to pay the new loan.

In other words, be realistic. Don’t ask for too much when you don’t have enough assets to back it up to avoid loan rejection.

4) Go for the right type of loan and according to your needs. 

The good news is loan comes in various types that will match your specific needs. Even if they have a common denominator, which is loan, loan products are designed in such a way that could work for you. The rates and charges vary too, so look into that as well.

Know what you need first then check if your lender offers a facility specifically for that need.

5) It’s okay to negotiate the rates and loan terms. 

Yes, you read that right. Lenders follow the rate prescribed by the Bangko Sentral ng Pilipinas (BSP) and adjust it to make sure they can earn. Nonetheless, try negotiating the rates and terms of the loan to make it favorable to you, without compromising the bank’s standing.

Still, this would depend. Improve your savings account, prove your ability to pay, and maintain a good credit score. This is no guarantee, but these three factors could help.

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7 Business Tips OFWs Must Know to Succeed

Business Tips for OFWsWe may sound like a broken record here, but it’s true; working overseas is not forever. There will come a time when you need to go home and continue your life in the Philippines.

“What about my family? How will we survive if I don’t work abroad?”

The truth is there are many ways to help you attain financial freedom. Aside from investing in the right and sustainable products, putting up your own business, no matter how small it is, can be another way to succeed. Take it from these former OFWs who are now entrepreneurs.

You might say that you know nothing about business and that there is no assurance that you will make it big. Fine, these are legitimate concerns, but these tips could help you give a headstart to help you succeed eventually:

1) Know what type of business to start. 

There are many business options available worth trying. The challenge now is finding the business you can focus on.

Here’s the secret: there is no right or wrong when it comes to business. On the other hand, what will set you apart from the thousands of entrepreneurs is your passion for that particular brand or product you are selling.

To determine the business you will start, look into what you are passionate about, say a skill or hobby. You can also evaluate your experiences as an OFW and see if you can get something from there, which you can share with other people and turn into business.

2) Be updated. 

So much has changed while you were away. More so, the culture you were used to in the country where you worked is more likely different than how it is done in the Philippines.

Before you rush in opening your business, make sure to update yourself first about the latest. By knowing what’s in and out, you will be able to determine the right target market and how to sell your brand among others. You might even use the trends and techniques you learned from living abroad and apply it in Philippine setting.

3) Prepare the requirements. 

You know what type of business to start. Through observation and immersion, you were also able to identify the latest trends, which you can use to market your business.

This is just the beginning. You need to comply with tons of requirements to make your business legitimate to avoid hassle. This includes but not limited to:

  • Business registration with DTI (for sole proprietorship) or SEC (for corporation)
  • Business permits, both from the City Hall and barangay where you plan to put up your business
  • BIR Clearance
  • Business TIN, for tax purposes
  • Appropriate licenses

4) Prepare the capital. 

You need money or capital to start or run your business. You have two options to secure funding: you can use your savings or borrow from lenders like us.

Should you decide to borrow, make sure that you avoid these common mistakes to increase the possibility of loan approval.

5) Make sure you involve your family. 

Starting a business and making it grow will never be easy. You will need all the help to manage your business since you can never do it alone. Give each member of your family a responsibility to grow your business. Make them feel that they play an important role to keep them motivated.

Tip: If you have kids who are knowledgeable about computers and social media, assign the number seven tip on them.

6) Be seen. 

This is the beauty of doing business these days. You don’t need a physical store just to inform people that your business is existing. You don’t even have to pay for billboards for ads. More importantly, you can send your brand’s message across various channels and reach out to potential customers.

To succeed in business, make sure to use online platforms available such as Facebook and Instagram. If budget permits, put up your own website, especially when you are selling multiple items. Building an online profile will make it easier for people to find you.

Tip: Focus on one platform first then build on it. This will make it easier for you to manage and maintain your online profile instead of using several social media channels at the same time.

7) Build a relationship with your customers. 

And potential customers as well. This is where the importance of social media comes in. Aside from marketing your product for free, people can easily reach out to you and inquire about what you’re offering.

Be respectful and answer the queries, no matter how annoying or repetitive the questions may be. Keep in mind that one bad review could potentially cause harm on your business and you don’t want that to happen.

With these tips in mind, are you ready to start your own business?

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You Will Succeed: Success Stories of Former OFWs that Will Inspire You

They say you can’t be an OFW forever. That’s true. At some point in your life, you will feel tired and you want to just stay in the Philippines, open a small business you and your family can sustain, and grow old here.

The challenge is how. More importantly, can you do it?

The answer is yes. In fact, there are many former OFWs who eventually succeed with the right amount of timing, hard work, and determination. If you’re looking for something to lift your spirit, then this one is for you.

Peter Ramores: From mechanic to real estate magnate 

He started working as a mechanic in Saudi Arabia when he was 21 years old. Eventually, Ramores rose from the ranks and became a foreman, senior mechanic, and supervisor. Unfortunately, higher ranks in the company he is working for requires Arabs or Arabic-speaking individuals, so he was stuck with his position.

He learned about house and condominium properties offered to Filipinos in Middle East. Although selling wasn’t his forte, he took a chance and worked his way up until he became a manager after three years.

At present, Peter, together with this wife Rachel, are now managing a network of hundred sellers in the Middle East with an average of P1 billion sales every year. Aside from that, they are managing five rental properties that are earning P1 million every month.

Ronelyn Achacoso: From housekeeper to handicrafts owner

She worked as a housekeeper in Brunei. Unfortunately, her employer maltreated her and was accused of theft. She was able to get back home, but her bad experience didn’t stop her from aiming for success.

When she got back home, she looked for opportunities to earn income in her hometown in Davao. She started attending trainings by OWWA on DIY invitation card designs using abaca sheets and flower-making. She was also into arts and crafts, so she used that passion to put up her own business, Nelyn’s Handicrafts.

At present, Ronelyn supplies her crafts to department stores in Davao City.

Rodolfo Valenzuela: From civil engineer-turned hardware salesman to owner of hardware stores

He may be a civil engineer, but he had a hard time looking for a high-paying job that could support his family. As a result, he went to Saudi Arabia and took a job as hardware salesman. His experiences taught him well, paving and encouraging him to put up his own hardware stores.

His advice: make sure to spend and save your salary wisely. More importantly, don’t be afraid to do business.

Mike Casas: From mechanical engineer to King of bottled sardines 

He worked in Brunei for four years as a mechanical engineer. His frugal personality made him venture into bottled sardines business, starting with only four people and selling it to friends and family. Word of mouth travelled fast and Mike’s bottled sardines soon became popular not just in his hometown, Dipolog City, but also nationwide.

At present, the bottled sardines are sold nationwide in specialty stores and supermarkets. Some Filipino supermarkets abroad are also carrying his products. He also participated in trade fairs and started exporting his products in Canada and United States. More importantly, Mike hires local fishermen, bottlers, and other personnel so they don’t have to work overseas.

Imelda Ahalul-Dagas: From executive assistant to coffee shop owner

She worked as an executive assistant in Oman and stayed there for 19 years. Later on, Imelda realized that being an OFW is not forever because of the many uncertainties. She looked into her other options until she realized that she wanted to be an entrepreneur. She attended seminars conducted by GoNegosyo and Association of Filipino Franchisers then eventually pursued her passion project of reviving Dennis Coffee, a coffee shop that her grandmother started in Sulu in 1962.

At present, Imelda transformed Dennis Coffee’s old town feel into a “first of its kind” social nook in Zamboanga. Her tips to success: plan well and plan ahead, start with being a part-time entrepreneur to gain experience, and be courageous. Being an entrepreneur calls for a leap of faith.

That being said, are you ready to start your own business? We hope this post inspired you to try and be courageous.