Thursday, 21 July 2016

CHECK CLEARING: One day process starting January 2017





What is Check Clearing?
Check clearing is the process of transferring funds from one bank to another.  When a check from one bank is presented to another bank, it has to go through a Check Clearing process before the funds is transferred to the receipient bank.

Starting Januay, 2017, the BSP announced that the Clearing Process shall be shortened from 3 days to one day or just 24 hours.  This is good news to entrepreneurs and business. They can now realize cash payments following day upon issuance of a check instead of waiting 3 days for their funds to be withdrawable.  See Philippine Star news write up on July 14 2017 elaborating on the announcement of BSP on one-day Check Clearing from the link below.

One-day check clearing starts in January

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) said the number of days in the clearing of checks would be reduced to one day from the current three starting January 2017.
BSP Governor Amando Tetangco Jr. yesterday signed a memorandum of agreement with Philippine Clearing House Corp. (PCHC) president and CEO Emmanuel Barcena to operationalize the Check Image Clearing System (CICS).
“Through CICS of the PCHC, all of our checks are targeted to be cleared in a fully electronic environment starting January 6 next year. For those of us who really are not specialists in this area, if there is one take away from this development, it has to be the fact that funds will now be made available by next day at the latest,” Tetangco said.
Tetangco said checks issued to family, friends, and business partners in various parts of the country would now enjoy near real-time finality of payment.
“And since check data are transmitted electronically, we necessarily eliminate transport risks on the physical cheques. We likewise address consumer protection issues that arise when our checks are either pilfered and/or altered to benefit those with ill-motives,” Tetangco said.
According to Tetangco, it is important to strengthen the check clearing system by leveraging on the advantages that technology provides.
“We are establishing the critical foundation for the adoption of check truncation technology. Simply put, we are moving from physical clearing of paper checks to a system that digitizes those same paper checks to facilitate their electronic clearing,” he said.
Data showed PCHC processes about 700,000 checks every day with an average value of P135 billion.
Tetangco said payments and settlement infrastructure plays a critical role in a dynamic and growing economy.
He cited a study by the Better than Cash Alliance in 2014 that showed only one percent of the monthly retail transactions are done in electronic form.
“This validates our heavy reliance on cash and checks in conducting our business. At a time when technology has become scalable, portable and affordable, this apparent reluctance to parlay the benefits of technology can only translate to further inefficiencies via foregone opportunities,” he added.

Saturday, 2 January 2016

DEMONITIZED OLD PHILIPPINE BILLS BY 2017


Sharing with you an important reminder from BSP on OLD Philippine Bank Notes which will no longer be legal tender by 2017.



Saturday, 28 February 2015

COMMON REASONS WHY LOAN APPLICATIONS ARE DENIED

In general, a borrower with the following characteristics shall be treated as a high risk client and loan application are usually automatically denied unless with strong mitigating factor (example:Good collateral support like a Co-Maker/Guarantor with strong cashflow)

1.       Employees with less than two (2) years work experience
2.       For self-employed: No track record or business is less than three (3) 
          years
3.       Credit Ratio is 40% and above (that's all your monthly loan
          amortization inlcuding credit card bills, divided by your Gross
          Income)
4.       Negative results of the credit investigation such as
a.  With  previous court case: ejectment, estafa, sum of money, replevin, BP 22, repossession/foreclosure case
b.  Cancelled credit card
c.   Negative telecommunication case 
5.       Individuals  with high risk or unacceptable professions such as
a.   policemen, members of the AFP/PNP
b.   entertainers
c.   news reporters or journalists
d.   pastors, priests or members of the religious order
e.   lawyers, politicians
f.    seafarers who are non-officers and highly dispensable positions
g.   land-based OFWs who are non-technical or unskilled and highly
       dispensable
6.     OFWs working in high risk countries (war-torn, war zone, famine 
        infested, very poor economy.)



Sunday, 28 July 2013

INVESTING IN MUTUAL FUNDS: PHILAM, PHILEQUITY, FIRST METRO

DO YOU WANT TO INVEST IN MUTUAL FUNDS? Minimum investment for some of these mutual fund companies is only P5,000. Send email to pinoyunderwriter@gmail.com to know more and to book your SELECTED  MUTUAL FUND Account in the illustration below.

MUTUAL FUNDS:

FOUR CATEGORIES OF MUTUAL FUNDS IN THE PHILIPPINES: 
1. EQUITY FUNDS invested primarily in stocks;
2. BONDS invested primarily in corporate- and government-issued bond securities;  
3. BALANCED FUND invested in both stocks and bonds; and, 
4.. MONEY MARKET FUNDS invested in assets with maturities of one year or less.
WHICH OF THESE REGISTERED INVESTMENT COMPANIES WILL YOU ENTRUST YOUR HARD-EARNED MONEY? . For more info on MUTUAL FUNDS email us at pinoyunderwriter@gmail.com
Depending on your financial plan and risk appetite we can tell you which product is the right one for you.We are your financial broker for these companies below. Contact us now and let us help you book your MUTUAL FUND ACCOUNT IN THE REGISTERED COMPANIES LISTED BELOW.

HOW DO I START MY JOURNEY TO FINANCIAL FREEDOM?

I've been employed in the last 25 years and I haven't saved much for my future...
I want to get out of the rat-race
I want to start earning passive income ..., I want to make money work for me and not  the other way around. 
How to do it....

  • STEP 1. Do a FINANCIAL CHECK UP by preparing a monthly statement of income and expenses. Know your cashflow - that's INFLOW AND OUTFLOW of cash......  Next,  prepare your statement of assets and liabilities to determine your net worth. Analyze your current financial status with these statements. NOW, PREPARE YOUR BUDGET....can be weekly, monthly, annual budget... List down expenses you can live without or deny yourself on things that you can live without like coffee shops, junk food, ATM transaction fees, magazines, eating out, etc... exclude from your BUDGET. You'll realize how much you can save if you remove these..
  • STEP 2. INCREASING CASHFLOW as your focus. LIST DOWN YOUR FINANCIAL DREAMS THEN LIST DOWN THE THINGS YOU NEED TO DO TO INCREASE YOUR CASHFLOW AND BE ABLE TO FULFILL YOUR DREAMS. Be very very specific example: By end December this year, I must be able to pay all my credit card debts..., By mid next year, my _____  business should be in full operation. I will earn additional P50,000 a month starting January 20__ .   Maybe TOP 10 DREAMS is best to focus on.  This LIST WILL KEEP YOU GOING. I look at mine everyday and PRAY OVER IT. Ask for guidance from the Lord.  Do not stop thinking of ways to increase your cashflow...
    STEP 3. ACT! Be disciplined. Work towards your goal/plan. Implement your financial check up. My wallet has partitions and money is segregated for food, transpo, kids allowance, etc... If I do not do this..I will just keep spending... Its not easy but its rewarding to see that every month you are able to save a certain amount... that extra amount, I use it to Pay off my debts..
 STEP 4. GET OUT OUT DEBT. May take YEARS! But we just have to accept that... Avoid debts/stop borrowing.. Start paying off the smallest one. No matter how it takes, if you need to earn extra P5K to P10K on top of your usual take home to pay off your debts, we just got to do it.
STEP 5. CREATE AN EMERGENCY FUND.Usually 3-6 mos. This is to prepare you when you start investing.... or if you have invested your money, you're sure not to touch it/sell it/liquidate it in case of emergency, instead you use the emergency fund.
STEP 6. GET SHORT AND LONG TERM HEALTH INSURANCE NOW! To prevent you from incurring more debts or losing your savings in case you get sick.
STEP 7. GET A LIFE INSURANCE. PROTECT YOUR ASSETS get non-life insurance as well....Your assets are your LEGACY to your kids or loved ones.  
STEP 8. DO ALL THE ABOVE BEFORE INVESTING. INVESTING HAS RISKS....SELECT THE BEST INVESTMENT OPTION DEPENDING ON YOUR FINANCIAL PLAN AND YOUR RISK APPETITE....  Make money work for you when retirement age comes...
Hope this helps.. If you need a mentor or a financial coach to guide you through F0R FREE, our team conducts free FINANCIAL COACHING Contact  us for details  at pinoyundewriter@gmail.com.

Friday, 11 November 2011

TIPS BEFORE YOU INVEST: a GUIDE TO BUILDING A STRONG FINANCIAL FOUNDATION



Kids are going to college very soon.....
Retirement age is quickly approaching.....
I've been an employee for over 20 years.
Yes, I have my paycheck every month and some perks,
but one is never too sure of what the future brings.
I WANT MORE MONEY!
 I’m in my mid-40's and truly, its a bit late  to start learning and taking these things seriously . . .
(If there are some of you reading this blog in your 20’s or  30’s,
I encourage you to start financial planning early…. )

But better late than never.    
                                   
To prepare for these financial woes, I started attending a couple of FINANCIAL coaching seminars, started reading personal finance books and subscribing to magazines like
MONEYSENSE (http://moneysense.com.ph/) and
Highly Recommended!

Before writing about what I learned so far…

Here’s my story:
                                                       
I  got hooked on finding ways to earn extra income and how to have passive income.

What did I look into to earn extra and a passive income?
I thought   
INVESTMENT
was key.

I looked into:

Business
(Crazy attending all those trade shows, Franchising stuffs to food carts and joint ventures)
Stocks
Mutual Funds / Trust Funds
Pension Plans
Bonds
Securities/Commodities
Real Estate Investment

I thought  I should start INVESTING  my hard-earned savings. ‘wasn’t that much though.

I was already choosing among these wide range of Investment products.
I was drawing my own INVESTMENT PORTFOLIO.
                                                                                                                       
I believed  “INVESTING” was the way to EARN MORE.
YES, But that is only PARTIALLY CORRECT.

L-E-A-R-N-I-N-G-S
Through the books and magazines I read, financial coaching seminars I attended, I’d like to share what I learned:


If you are an average person, a regular employee or worker, living in a third world country or someone NOT born with a silver spoon…. There is always HOPE to conquer all your financial woes.


We just need to work for it and most of all be DISCIPLINED in managing our CASH FLOW.

I learned we should not just JUMP INTO ANY FORM OF INVESTMENT. Before we embark on ANY  AND START EARNING MORE, we should:

1.    FIRST, ELIMINATE DEBT so you do not just PULL-OUT on your investment to pay for this later. There are 2 kinds of debts:
a.       Debt that transforms into an asset and will eventually give you extra income or   
          passive income; and,
b.      Debt that doesn’t fall in the description in letter a. above  
The one that we should eliminate are  those debts in letter b., like our CREDIT CARD debts, 5-6 debts (a term in the Philippines which means loans with usurious interest rates. This is very common even if interest is high because it is very accessible – no documentary requirements, no cashflow evaluation like in banks, immediately available. Lenders of 5-6 debt usually know you, or you are probably referred, they know where to hunt you down in case of default or non-payment… some lenders require just post dated checks)

2.    FIND A LONG- and SHORT- TERM HEALTH CARE PROGRAM. No one wants to get sick or be caught in an accident but we always need to be prepared. Securing a “HEALTH INSURANCE” will protect us from expensive hospital bills much so we do not PULL-OUT our investment in case the inevitable happens.

3.   SECURE A LIFE INSURANCE OR PROTECTION. Investments are risky. We also want to leave something behind for our loved-ones (and not debts).

4.   BUILD YOUR EMERGENCY FUND.  Suggested emergency fund is 4-6 months of your regular NET TAKE HOME PAY. This is to answer for your needs in case there are emergencies like someone in the family gets sick, or you (knock-on-wood) lose your job, etc.

INVESTMENTS have risks too. We also do not want to PULL-OUT on what we have INVESTED when we need the funds. Following the steps above will PREPARE us to be successful in our financial endeavors and GET BACK OUR MONEY'S WORTH WHEN WE START INVESTING. . .



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

Tuesday, 28 June 2011

BASIC DOCUMENTARY REQUIREMENTS WHEN APPLYING FOR A LOAN

There are 3 basic types of documentary requirements lenders usually ask from loan applicants:

1.  Proof/s of Identity;
2.  Proof/s of Residence; and,
3.  Proof/s of Income or Source of Repayment

PROOF OF IDENTITY:

Lenders require valid IDs. The preferred IDs by lenders are  government-issued IDs such as passport, driver's license, SSS ID. Some borrowers require at least 2 IDs. Further,  some lenders classify IDs as  primary ID or secondary ID - Primary are those issued by government and Secondary by non-government entities such as employment ID.  Rules also vary depending on the comfort level of the lender. (eg. 1 primary ID or 2 secondary IDs, etc.)  ID/s submitted must  be updated or not expired and shall contain the client's recent photo, correct basic information and importantly, the signature.


In some cases, lenders would like to further establish the identity of borrowers and hence require more proofs of identity such as  marriage contracts, birth certificate, for single loan applicants - a certificate of no marriage, photo ID, etc.



PROOF OF RESIDENCE:

The most commonly submitted proof of residence is a recently issued billing statement mailed to the borrower's residence.  Some lenders have preference and specify the issuer of the billing statement. The more acceptable billing statements are those issued by electric, phone, or water (utilities) companies, and bank account or credit card statements.

PROOF OF INCOME OR SOURCE OF REPAYMENT


Lenders need to be assured that there will be repayment. Proofs of income or source of repayment is a mandatory requirementProofs of income vary base on the loan applicant's occupation.

1.  Locally Employed - Income Tax Return (ITR), Certificate of Employment with Compensation, payslips or Employment Contract.
2.  Overseas Filipino Worker -
      a.  Land-based: Employment Contract, Payslips
      b.  Seafarer: Employment Contract, History of Embarkment/Employment, Allotment slips
      Proofs of Remittance are also being required by some lenders.
3.  Self-Employed/Partnerships/Corporations: ITR, Audited Financial Statements, Operating Account - Bank Statement, List of Customers and Suppliers

The above are also in compliance with the Anti-Money Laundering Act (AMLA). Follow this LINK, to know more about AMLA.