Category: OFW Guide

Fact: when you decide to work as an OFW, you need to secure TONS of documents to process your application. By documents, this includes NBI Clearance.

Usually, you need a NBI Clearance as part of the requirements you need to submit prior to leaving the country. It is valid for a certain period only and may be renewed whenever needed.

Why do you need to get this document when you’re already out of the country?

There are two scenarios:

• If you want to live permanently on the country where you currently work
• If you want to migrate to another country while working in a foreign country

Given these scenarios, does it mean you need to go back to the Philippines to get a NBI Clearance?

Thankfully, NO. In fact, all you need is a decent Internet connection because getting this document can be done online.

There are two options when you apply for NBI Clearance online:

• Through a proxy or an authorized representative
• By mail, which does NOT require an authorized representative

Here’s how you can apply or renew NBI Clearance WITH REPRESENTATIVE:

Step 1: Prepare all the documents.

For new application:

• NBI Form No. 5 or the Fingerprint form. You can get a form from the Philippine Embassy or Consulate. If you have a representative, s/he can get the form at NBI UN Avenue branch.
• Duly signed Letter of Authorization, in case you have a representative
• Photocopy of passport, including the latest stamp of departure
• 2×2 photo in white background. Make sure that the photo was taken at least three months prior to application.
• Valid IDs provided by your host country

For renewal:

• Previous NBI Clearance in its original form
• Duly signed Letter of Authorization, in case you have a representative
• Photocopy of passport, including the latest stamp of departure
• Valid IDs provided by your host country
• NBI Form No. 5, although this is not a mandatory requirement

As soon as you prepared all documents, send these to the Philippines.

Step 2: Registration

Go to NBI Clearance website to register for a new account online. Make sure you provide all relevant information for faster verification process. You can also access the website here.

Step 3: Create an online appointment.

Once you successfully registered, set an appointment. Make sure you use “PASSPORT” as your valid ID.

Since you are overseas, choose NBI Clearance Center, UN Avenue, Manila as your branch.

Step 4: Payment of fees.

Depending on your preferred payment method, you or your representative must pay for the corresponding fees. A reference number will be generated after, which you should keep.

Step 5: Submission of documents.

Your representative must submit the documents and present the reference number at the NBI Central Office in UN Avenue. Make sure that your proxy will present valid ID to verify his or her identity.

Step 6: Mailing and Authentication.

Once your NBI Clearance is released, your representative must mail it to you. Once you received it, it should have NBI Dry Seal.

Then, go to the Philippine Embassy or Consulate and have your clearance stamped.

Here’s how you can apply or renew NBI Clearance WITHOUT REPRESENTATIVE:

This is what you will do in case you cannot assign someone to process the NBI Clearance application or renewal on your behalf:

Step 1: Preparation of documents.

Prepare the documents mentioned above. With or without a representative, the requirements are the same.

Aside from the documents, you also need to attach money order or bank draft amounting to P200 to NBI Director. Take note that personal checks or cash are not accepted.

Step 2: Mail the documents.

This should be mailed at Mailed Clearance Section, 3rd Floor, NBI Clearance Building, UN Avenue, Ermita, Manila

Step 3: Register online.

You can do this by creating an online account at the NBI Clearance website. If you have an existing account, then simply log-in at the website.

Step 4: Apply for clearance.

On the Applicant’s Information Page, click “Apply for Clearance.”

Skip the online appointment since you don’t have a representative who could go to the NBI Office in UN Avenue.

Step 5: Payment of fees.

Pay for the corresponding fees. A reference number will be generated, so make sure to take note of it.

Step 6: Processing of application.

Verification of documents and processing of NBI Clearance application often takes five days from the time the agency receives your documents.

Also, always check the status of your application through the NBI Clearance website.

Step 7: Mailing of documents.

Once approved, NBI will mail you the clearance. Make sure the document has NBI Dry Seal before you bring it to the Philippine Embassy for verification.

The process may not be perfect – for now – but this is an improvement that will definitely help Filipinos. Take advantage of this service and share on the comments section about your experience.

Your salary overseas may be bigger than your usual salary in the Philippines. Still, let’s face it: it doesn’t seem enough. This is why you take side jobs to make ends meet and yet, your family’s needs – and wants – back home are just too much for your pocket to handle.

This is why you and your family decided to start a buy and sell business to help augment financial needs. Plus, it is among the easiest business you can do since the qualifications are not restricted to large capital and a business degree.

Don’t be too complacent. A lot of people are in this field so you need to be smart in starting this business. The question now is how.

Here’s how to start your buy and sell business:

Step 1: Know Your Market.

It’s not enough that you have a brilliant idea or a product that will make people’s lives easier. To succeed, you also need to know who your market is.

Who are the people most likely to buy your product? What needs are you trying to fulfill through the product you are selling?

Aside from this, you also need to know who your competitors are. This is essential because it will help you in your market strategies. At the same time, you also need to check whether the market is already saturated. Competition is good but if there’s too many already, then you need to come up with a plan on how to set you apart from the rest.

Step 2: Establish Your Capital.

Now that you know your market, it’s time to establish how much money you will use for your new business. Consequently, you need to know where you will get your capital.

You can use your savings for your starting capital. On the other hand, you can also borrow money if you don’t want to use your savings.

Balikbayad offers up to P500,000 to help OFWs finance their needs.

Step 3: Source Your Products.

You know what to sell and how to sell it. You have sufficient money for capital, thereby making you capable of buying what you need. The next thing you need to do is to source your products.

The truth is you can sell anything you want. If you want to succeed in this arena, then you need to go for a product that will not only help Filipinos but also something new and relevant in the market.

You can start with products where you can buy wholesale for a cheaper price in areas like Divisoria, Tutuban, or Taytay. Make sure you canvass properly and find suppliers that will give you the most competitive price.

You can also get products from where you’re working and send it back home. Who knows, this could lead to exclusive distributorship where you can kiss your OFW life goodbye.

Step 4: Set Up Your Store

There are two ways to set up your store: physical store or online.

If you plan a physical store, then you need to look for a place with high foot traffic. This way, you will be able to reach more potential customers. That being said, you need to prepare yourself to pay for the rent, which must be declared as part of your expenses.

If you want to save yourself from paying the rent, then consider an online store. You will be able to use the funds for your marketing campaigns instead of paying it for rent. The best part is there are free sites that allow you to set up an online store such as Facebook and Instagram. Maximize on that. When your online store is picking up, you can put up your own website.

Step 5: Register Your Business

Many online stores don’t have the necessary permits and business registration. While this is okay, you might be asked to process the legitimacy of your business when you decide to open a physical store or rent a commercial space. Online retailer giants like Lazada and Shopee also require business documents before you are allowed to sell on their website.

It may be a hassle, but at least you are registered, right?

Step 6: Start Selling.

Now that you have your products, your business is registered, and you secured the necessary permits needed, it’s time to start selling.

Don’t wait for next week or next month. You might be foregoing opportunities if you delay. Go for it.

It’s never easy being an Overseas Filipino Worker. Despite the promise of a better life, there is always a possibility that your dreams of an improved future won’t happen. If you’re not too careful, you might even be a victim of illegal recruitment.

That being said, what is your legal remedy in case you became a victim of illegal recruitment? Can you file a case against the illegal recruiter? If yes, where should you file it? What is the procedure you need to follow to make sure that the illegal recruiter pays for what he did?

Here’s what you need to know about POEA’s Legal Assistance Services:

Coverage of Legal Assistance Services:

Legal Advice – this offers counselling services wherein repatriated workers are informed of rights as well as possible options for redress of grievances.

Conciliation – this gives both the repatriated worker/s and recruitment agency an opportunity to discuss and possibly come up with an amicable settlement. Per POEA, parties must undergo 30-day mandatory conciliation-mediation before a complaint will be filed in the Adjudication Office for the following cases:

• Administrative complaint involving OFW, licensed manning agency, or employer relating to overseas employment
• Issues arising from labor and employment

In case parties are unable to settle, the POEA Conciliation Unit will issue a Certificate of Failure to Conciliate.

On the other hand, the following cases are NOT required to undergo mandatory conciliation-mediation proceeding:

• Cases referred by POLO
• Cases initiated by the POEA
• Cases involving acts of misrepresentation to secure license
• Violations of POEA Rules and Regulations involving serious offenses
• Offenses penalized with cancellation of license
• Complaints against agencies with revoked, cancelled, or delisted license
• Disciplinary actions against land-based workers and seafarers, which are either considered serious offenses or carry the penalty of delisting from the POEA Registry at first offense
• Other complaints included in the POEA Rules that are not subject to compulsory mediation

Preparation and Filing of Complaints – if the case prospers, the agency, through Legal Assistance Division, may help in the preparation and filing of complaints for illegal recruitment, disciplinary action cases, and other forms of recruitment violations.

Counseling – this is done during preliminary investigation and and hearings of criminal cases for illegal recruitment.

Procedure in Availing POEA’s Legal Assistance Services:

Before you proceed, you need to make an appointment to ensure that the agency will assist you when you arrive. Consequently, this assures the agency that the assistance is extended to OFWs only.

Click this link to make an appointment. Make sure to tick the box that indicates “Legal” under “Assistance” tab for the purpose of such request.

Once you made an appointment, here are the other steps you need to do on the day of your schedule:

1. Proceed to Legal Assistance Division, 4th floor of the POEA Building.
2. Get and fill out a Verification Form from the guard-on-duty.
3. Secure an OFW Information Sheet from the Central Records Division, 6th floor, POEA Building.
4. Submit the documents, Info Sheet and Verification Form, at Window 3, Licensing Branch, 4th floor of the POEA Main Building. The LB Verifications Officer will verify your status as OFW.
5. Once your status is verified, submit the verified documents to the Legal Assistance Division or LAD Officer. Wait for your name to be called.
6. When you’re called, go to the designated Legal Officer for counselling or legal assistance. The Legal Officer will also help you in the preparation or filing of a complaint form.
7. Submit the duly accomplished complaint form to the Legal Officer. You will also be asked to swear under oath as to the truthfulness of the facts contained in the complaint.
8. File the complaint at the Conciliation Unit, 2nd floor of the POEA Main Building if proper for conciliation OR Docket and Enforcement Division, 3rd floor of the same building.

For further details, you may contact:

Philippine Overseas Employment Administration
Legal Assistance Division
4th Floor, BFO Building
EDSA corner Ortigas Avenue Mandaluyong City
Telephone Nos.: 721-0619/722-1189
Email: legal-asst@poea.gov.ph

Are you excited to ride an airplane? As an Overseas Filipino Worker, one of the easiest and most convenient way to go to your place of destination is by riding an airplane.

Of course, there will always be unforeseen circumstances that will led to the delay or cancellation of flights. Although this is not the primary aim of transportation companies, sometimes, things could go beyond their control. This could cause issues on your employment since you are supposed to arrive on a specific date – and for visa purposes as well.

That being said, what could be the reasons for delayed or cancelled flight? These are:

Bad Weather

This is the most common reason why flights are delayed or cancelled. Even if the weather is good in Manila, if the weather from where you are going is bad, then there is a possibility that the flight is cancelled as well. The condition of the route and runway are also considered in case of bad weather; hence the delay.

Unfortunately, bad weather is something that is hard to avoid because you’ll never know when a typhoon is coming.

Aircraft Preparation

Thousands of people use a single aircraft every single day. Before you board, cabin crew and aircraft personnel ensure that the plane is clean and in tiptop condition. Refueling and security checks are likewise conducted to avoid aircraft issues while on air.

Strict timeline is being followed to avoid delays. Apparently, unavoidable situations happen; hence the reason why you have to wait.

Airport Congestion

The Control Tower plays a crucial role. They provide information to pilots regarding critical information such as weather updates, runway closures, and even traffic condition in the runway.

Unfortunately and despite the huge amount of space available, traffic, commonly known as airport congestion, is still an issue. When this happens, aircrafts won’t be able to takeoff properly and could cause accidents, which is something everyone wants to avoid.

Mechanical Delay

One of the standard operating procedures to be conducted is checking the aircraft prior to the scheduled flight. This is a must because more than anything else, safety is the top priority.

If they see any issues while testing the plane, the Operations Team will conduct troubleshooting procedures to ensure that the aircraft is safe and viable to fly. This may take some time, but again, safety of not just the passengers but the crew as well is a must.

Waiting For Connecting Passengers And Cargo

Not all flights are direct to a specific destinations. At times, you need to have a connecting flight to arrive in the country where you’ll work. When there are passengers in the connecting flight, you have to wait for them as well.

There’s no issue if the passengers and cargo from the connecting flight did not experience any delay. Otherwise, expect your flight to be delayed as well for hours.

Delay Caused By Cabin Crew

Sadly, this happens. Generally, there is an assigned cabin crew for every flight. But if the crew assigned is coming from another flight that is also running late, then delay might happen – even if it means waiting for them.

Catering Concerns

Believe it or not, this could be a cause of delay. International flights take hours, which is why most aircraft serve food along the way.

Unfortunately, there are instances when the catering arrived late for various reasons like traffic or last-minute preparations. When this happens, departure will be delayed as well.

Security Concerns

This is crucial. Sometimes, there will be last minute cancellations because of unforeseen situations in the country of destination, similar to what happened in Hong Kong last August 2019.

Stringent security clearances is another issue to look into. Some countries require submission of detailed and time-consuming clearance to allow the plane to depart, which explains the delay.

Don’t worry. Regardless of the delay, you can still work overseas and start a better life there. Just make sure that you have all your travel documents with you and don’t forget to bring water, food, and other things that will help you kill time.

They say education knows no age. Whether you are 15 or 50, learning never stops. The good thing now is that learning something new is easier and more convenient. All you need is to open your browser, type the course you want to study, and make sure you are online during your scheduled class.

We know what you’re thinking: enrolling in courses mean you have to pay a certain amount for it.

Not with TESDA. In fact, the agency offers learning programs for OFWs that are both online and free.

What is TESDA Online Program?

Also known as TOP, this program is an online educational resource that aims to make learning accessible to millions of FIlipinos through information and communication technologies.

It is created for students, out-of-school youths, unemployed individuals, and even professionals. Surprisingly, more and more OFWs are also taking advantage of this online portal.

The good thing about this facility is that people can learn at their own pace and time at a lesser cost.

What are the courses offered?

As of this writing, the facility offers more than 50 courses from various fields such as:

• Agriculture
• Automotive
• Electronics
• Healthcare
• Maritime
• Tourism-Related such as Housekeeping and Cookery

You can explore various courses according to your own preference by visiting their website.

How To Register To TESDA Online Portal:

1. Create an account by signing up in the TESDA Online Program. You can access the link here.
2. Fill out the form. Make sure that the information you put pertains to you. Take note that the fields with asterisk are considered mandatory; hence must be filled out.
3. Click Create my new account to continue.
4. Activate your TESDA account by clicking the confirmation link sent to your registered email address. This is a must.
5. Now, you can enroll in classes.

How To Enroll In TESDA Courses:

1. Login to the TESDA portal using your registered email address and password.
2. Choose among the available courses displayed on your screen.
3. Click the link of the course you want to take.
4. Another window will open. Choose the module you want to take.
5. Then, click the “Enrol me in this course” tab located at the left side of the navigation pane.
6. Click Yes to proceed.

How is the program beneficial to you as OFW?

It is highly recommended that you take advantage of this facility. All you need to do is to complete all the modules to get a Certificate of Completion. This proves that you completed your online course, but take note that this is not equivalent to certification.

To get certified, go to a recognized TESDA Assessment Center for assessment. If you pass, then you will get a National Certification, which you can include in your resume.

If Online Learning Is Not Appealing, Then That’s Fine

TESDA has three free skills training program, especially for returning OFWs. These are:

• Reintegration, wherein returning OFWs can get free skills training, assessment, and certification as well as job referrals.
• Training for Work Scholarship Program, which is beneficial for jobs that require highly critical skills like electronics, agri-business, and information technology.
• Special Training for Employment Program or STEP, which involved community-based training to address and promote specific skills for future employment.

Who says learning and education is only for the rich and with money? Everyone is entitled to this right, so make the most out of it. Happy learning!

Many OFWs are asking this: what benefits can they get from being a member of OWWA? Why should they pay $25 for a membership that they feel doesn’t help them in whatever way?

The truth is there are many. These benefits include but not limited to:

• Disability and Disarmament benefit in case of accident or injury while at work
• Death benefits
• Education and Training programs such as scholarship, allowance, and training assistance
• Repatriation Assistance Program to help you come back to the Philippines
• Reintegration Program, popularly known as OWWA Loan, which helps you open your own business

The good news is there is another benefit that OFWs can enjoy in accordance to the Section 54 of RA 10801 or the OWWA Act of 2016: the OWWA Rebate Program.

What is the OWWA Rebate Program?

This program is granted to OFWs who comply with the following:

• OWWA member for at least 10 years
• Made at least five or more contributions
• Have NOT yet claimed any form of benefit or service from OWWA

OFW beneficiaries may also qualify under the rebate program as long as the deceased OFW member met all the requirements above.

If qualified, then you can get at least P941.00 up to P13,000.00, depending on the number of contributions made.

At present, P1 billion is earmarked by the agency for this program. This aims to help 556,000 OFWs who are also long-term members of the agency. The agency plans to increase the amount up to P2 billion to also give back to modern heroes.

How To Check And Claim If You Are Qualified Under The OWWA Rebate Program

1. Visit the website by clicking this link.
2. Fill out the OWWA Rebate Verification Form.
3. Once filled, click Inquire.
4. If you are qualified for the rebate, you will see how much you can get.
5. If you’re satisfied with the amount, then set up an appointment on any OWWA Office near you.
6. You will receive a text stating your appointment code. DO NOT DELETE this message for reference.
7. On the scheduled appointment, go to the OWWA Office or Branch and show the appointment code. Don’t forget to bring one valid government-issued ID as well for verification.
8. Give your bank details to the person-in-charge. This is important because this is where OWWA will deposit the money.

Naturally, the amount you will get is for your personal use like additional capital for your business or deposit in your savings account.

Nonetheless, you may also use the funds for the following purposes:

• Donate the proceeds to the Tuloy Aral Project or TAP. This foundation is dedicated to helping less fortunate OFW families go back to school.
• Renew your OWWA membership, especially if you still have an existing employment contract overseas.

Take note that this program is a rebate and not a cash back or refund of all your contributions. Make sure you check on this benefit and make the most out of the amount you will get from here. After all, you deserve it.

For further questions, you may contact OWWA Hotline 1348.

At this day and age, convenience is everything. You constantly find for things that will make your life easier and more enjoyable. Since you are working overseas, you also want to ensure that your family gets what they need even if you are miles away.

That being said, can you imagine transferring money or paying bills even without physically being in the Philippines? Believe it or not, you could do it now.

The best part is you could save more time and devote extra hours at work instead of waiting for your turn in banks or enduring a long commute just to deposit money because your family back home needs it. After all, when you are working overseas, time is everything.

This is what digital banking is all about. Unfortunately, only 14 percent of Filipinos are taking advantage of banks’ online capabilities. If you’re not one of them, then it’s time to consider looking closely into digital banking.

But first, what is digital banking?

Digital banking is an online facility that allows you to perform various bank transactions using your smartphone. All you need to do is to download the bank’s app on App Store or Google Play Store and you can do these, but not limited to:

• Opening a bank account
• Depositing money
• Paying bills

In other words, you can manage your account with just a few clicks and make banking transactions easier and more accessible.

What are the features of digital banking?

Many of you might be wondering why digital banking is the next big thing. The truth is there’s so much you could do. This includes:

• Opening of bank account without physically going to the bank.
• Depositing of money, although as of this writing, only check deposits are allowed. All you need to do is to take a picture of the check and it will be processed. Unfortunately and since digital banking is still on its infancy stage, cash deposit is not yet allowed since there is no program – yet – that could read paper money.
• Managing of bank account, whenever, wherever.
• Paperless transaction
• 24/7 customer service wherein you can call anytime
• Easy and secure banking

Hopefully, more features will be added but so far, these are sufficient reasons to entice you to try digital banking.

How is digital banking different from online banking?

This is a good question.

Online banking and digital banking are similar, except that the latter has more extensive features.

Online banking is limited. You could transfer money from one account to another or pay bills, but that’s it. In fact, you need to have an account with a particular bank first before you can access its app. Otherwise, even transferring money won’t happen.

How does digital banking benefit OFWs?

The answer is simple: convenience.

Being miles away from your family is not easy, more so managing finances. It is also important to have a bank account where you can deposit money because you’ll never know what could possibly happen in the future.

Don’t be afraid to try digital banking. It is understandable to be skeptical about it but if you don’t give it a try, then you’ll never know how much it could benefit you.

Where do you like to put your hard-earned money? Surely, you have a long list of investment options, which also includes real estate. By real estate, we mean not just your family home but also a property where you can earn additional income. This is a good form of passive income because you get to earn money without exerting too much effort.

“Pero mahal bumili ng lupa.”

“Kaya ba namin bumili ng lupa na pagkakakitaan?”

These are just some of the many concerns echoed by thousands of OFWs when confronted with the idea of investing in real estate. While these may be a cause of concern, these shouldn’t stop you from trying something outside of your comfort zone.

Check out these tips on how to invest in real estate:

Tip No. 1: Invest as early as possible.

If you want to make the most out of your investment, then you need to start as early as possible.

Make the most out of your hard-earned money by setting aside sufficient amount for your real estate investment. Minimize your spending, avoid buying unnecessary items, and prioritize your expenses. Now is the perfect time to establish your Emergency Fund, which you can use for your real estate purchase.

Plus, land value tends to appreciate, so if you don’t buy now, then you might have a hard time buying the same property after five years.

Tip No. 2: Location is key.

What’s the point of having a property you can earn from if it is not located in a prime location?

When it comes to real estate investment, location is everything. Imagine what the area might look like 10 years from now. You also want a location with high foot traffic or near commercial establishments so people will come to you.

Properties located in prime locations may be more expensive than usual, but think of this as an investment for your future.

This leads us to the next tip.

Tip No. 3: Don’t just settle for residential properties.

Real estate is not just for residential purposes. You can also invest in properties that are commercial in use.

Consider getting one if house is no longer an issue. Or, you can get a building, utilize the upper floor as your residential home, and the lower floors will be for business purpose. That’s hitting two birds with one stone.

Tip No. 4: Assign someone who can help you with the buying process.

This is important. As an OFW, you might not be able to process the sale personally since you are overseas.

That being said, you need to assign someone you can trust to transact on your behalf. There is money involved here, so make sure you get someone who is honest and trustworthy. Otherwise, you might end up losing large amount of money, no thanks to your attorney-in-fact.

Tip No. 5: Prepare the necessary fees and documents.

Investing in real estate requires not just time but also money and effort. You will be asked to prepare documents such as Deed of Sale and Special Power of Attorney in case you are unable to do business personally. You also need to prepare your employment documents like Certificate of Employment, employment contract, and valid working visa.

That’s not all. Money is involved when buying real estate. Fees such as Documentary Stamp Tax, Capital Gains Tax, and Transfer Tax are some of the expenses you have to shoulder when buying a real estate property.

In case money is a cause of concern, there are home loans available and offered by banks and government agencies. Take advantage of those so you can start with your real estate venture.

They say that if you want your child to be successful in life, you need to start teaching them as early as now. After all, childhood is the best way to instill values and skills that they could carry with them as they get older.

Surely, as a parent, you want to ensure that their future is bright and that they will be ready even when you’re gone. You might even dream that they will be the next business tycoon in spite of your humble beginnings.

Don’t worry. You can do that. With the right amount of push and encouragement, plus these tips, your child could be the next Henry Sy or John Gokongwei:

Tip No. 1: Guide them, but don’t do things for them.

As a parent, it is understandable that you want to make things easier for your kids. If you really want them to succeed in life, then you need to stop doing things for them and let them be.

Spoon-feeding your kids teaches them to be dependent on you, which is something you need to avoid. Show them how to do it and let them do it on their own. Later on, encourage them to do it by themselves.

Make sure you also ask follow-up questions like, “Can you think of another way to do it?” or “What happens if you do this instead of that?” This encourages them to think outside the box and develop critical thinking skills.

Tip No. 2: Encourage your kids to try new things.

This is important. Many businesses start with an idea that could change people’s lives and makes things easier.

Let your child explore and discover things on their own. If they want to experiment on something or showed interested about a certain activity, then go ahead and let them do it. Make sure to support their wants and never discourage them to think outside the box.

Who knows, their idea is the next big thing in the market.

Tip No. 3: Saving is a priority.

Saving is one of the most important skills everyone should know, regardless of age. As early as now, you need to stress the importance of saving for future.

That being said, teach your kids about the importance of money and having an Emergency Fund. Let them know the difference between needs and wants. Encourage them to invest more. Educate them about the importance of spending what they are earning.

More importantly, be a good role model. If they see that you are being wise in handling money, then your kids will most likely follow.

Tip No. 4: Avoid punishing them for their mistakes.

Everybody makes mistakes, including you and your kids. When your kid made a mistake or failed on a particular subject, avoid punishing them. Instead of encouraging them, you could create a culture of fear. This could hinder their plans if and when they decide to start their business in the future.

Instead of getting mad, tell them that failure is part of life. In fact, they shouldn’t be afraid because it will teach them valuable lessons.

The same goes with business. As an entrepreneur, your kid will face tons of challenges and failure, but these shouldn’t stop them from pursuing their dream.

Tip No. 5: Don’t underestimate the importance of social skills.

A lot could happen in a single conversation with a person you just met. This is why it is important for kids to learn social skills early on. It is a good opportunity to meet someone who could potentially help them in their future endeavors.

Bring your kids out to play, enroll them in classes if budget permits, or schedule play dates with your friends. There are tons of skills your child could learn and at the same time, helps build their confidence, too.

Tip No. 6: Teach your kids how to sell.

Business is also about selling. Even if your child has a great product that could change the world, this is useless if he doesn’t know how to sell it.

This could be tricky since not everyone are born to have good selling skills. Still, start small. It could be introducing a product first to your friends or allowing them to manage the social media page. The point is your kid will learn a certain skill through simple acts, so make the most out of it.

Are you ready to hone your future Bill Gates?

Starting your own business is not easy. Even if you have a brilliant idea that could change the world, you still need reinforcements to carry out that idea and make it happen.

By reinforcement, we mean capital.

Let’s face it. Not all of us have millions in the bank. Even if you are earning dollars and working three jobs everyday, your money doesn’t seem to be enough to cover all expenses back home. Surely, you would set aside the money left for emergency instead of funding your own business.

Who do you turn to? Lenders like banks or private financial institutions to apply for a business loan.

Did you know that business loans come in many types?

Read this post to find out the right type of business loan for you:

Term Loan

Term loan is a type of loan, either short or long-term, that helps business owners get necessary funding without using personal funds. This is also ideal for starting entrepreneurs because payment scheme is equally distributed every month. If you plan to get into franchising business, then this type of loan is recommended as well.

You can use term loan for immediate purchases and expenses such as expansion of business, additional working capital, inventory, or construction of your business place among others.

Loan Features:

• Borrow between P100,000 to P20 million, depending on the lender and the security you can offer to guarantee the loan
• Payable in one year to 15 years, depending on your chosen term. Some lenders have a maximum 10-year loan.
• Payment includes both principal AND interest, divided in equal monthly amortizations
• Average interest rate is 7%, although this could go higher or lower, depending on the loan provider

Credit Line

Let’s say the need is not immediate, but you simply want to be prepared just in case you need the money. If that’s the case, then this type of loan is recommended.

Credit line is a type of short-term business loan that you can access whenever there is a demand. The interest, which depends on the prevailing market rate, you pay will also depend on how much you will get from the credit line. You can also borrow up to P20 million.

For instance, you will be given a P5 million credit line, which you can use within one year. On the first month, you’ll get P200K, which will be your Loan 1. The interest you have to pay will be based on the P200K amount. On the third month, you get P500K. This is Loan 2 and the interest charged will be based on the amount you borrowed.

You may or may not use the entire credit line within the year. If you do, then make sure you have enough to cover for the monthly fees. You also have the option to pay off the loan without waiting for the maturity date, making credit line more flexible than term loan.

Depending on your lender, you could also renew your credit line for another year just in case.

Secured vs. Unsecured Business Loan

Both Term Loan and Credit Line can either be Secured or Unsecured.

From the name itself, secured loan means there is a guarantee or security that will serve as collateral for your business loan. This means lower interest rate and you could negotiate a better deal since the loan is secured.

On the other hand, it is a must that you pay your loan regularly. Otherwise, the collateral may be taken from you to pay off the loan.

Unsecured loan does not jeopardize any of your assets. The drawback is that interest rate is typically higher since the rate will serve as your collateral.

Talk to you preferred lender as to the best type of loan for your business. Just in case, Balikbayad is also here to assist you in your financing needs.