Securing a loan can feel like a pivotal moment for any business. It’s a chance to fuel growth, expand operations, or weather a storm. However, the path to financial freedom paved with borrowed funds can be treacherous. Getting a loan is a double-edged sword; it offers immense potential for success, but also carries the significant risk of failure if not managed carefully. This article will explore both sides of this equation, highlighting the crucial factors that determine whether a loan becomes a boon or a bane for your enterprise.
The Upside: Fueling Growth and Opportunity
For many businesses, loans are the lifeblood of expansion. Access to capital allows entrepreneurs to pursue opportunities that would otherwise remain out of reach. This could involve purchasing essential equipment, hiring skilled employees, investing in marketing campaigns, or developing new products or services. A well-planned loan can unlock significant growth potential, leading to increased revenue, market share, and overall profitability.
Consider a small bakery struggling to meet the demand for its artisan bread. A loan could enable them to purchase a larger oven, hire additional bakers, and expand their retail space. This investment directly translates into increased production capacity, wider distribution, and ultimately, higher profits. The loan, in this case, acts as a catalyst for sustainable growth. Similarly, a tech startup might leverage a loan to develop a crucial software feature or conduct extensive market research, positioning them for a successful product launch and attracting investors.
The Downside: The Risks of Overextension and Debt
While loans offer tremendous opportunities, they also present significant risks. The most prominent danger is overextension. Borrowing more than the business can realistically repay can lead to a vicious cycle of debt. Missed payments, accruing interest, and potential legal action can quickly cripple even the most promising ventures. Careful financial planning and realistic projections are paramount to avoid this pitfall.
Imagine a restaurant owner taking out a large loan to renovate their establishment without thoroughly analyzing the potential return on investment. If the renovations don’t attract enough new customers to justify the increased operational costs and loan repayments, the business could find itself drowning in debt. This scenario highlights the importance of conducting a comprehensive financial analysis before applying for any loan. Understanding cash flow projections, break-even points, and potential risks is essential to making an informed decision.
Navigating the Loan Landscape: Key Considerations
Successfully navigating the loan landscape requires meticulous planning and a clear understanding of the available options. Entrepreneurs should explore various loan types, including term loans, lines of credit, and SBA loans, each with its own terms, conditions, and suitability for different business needs. Comparing interest rates, repayment schedules, and associated fees is crucial to securing the most favorable deal.
Furthermore, building a strong business credit history is essential for securing loans at competitive rates. Maintaining a good credit score, timely payment of bills, and accurate financial reporting all contribute to a positive credit profile, making it easier to qualify for loans and negotiate better terms. Networking with financial institutions and building relationships with lenders can also provide valuable insights and support throughout the loan application process.
Conclusion: A Calculated Risk
Securing a loan is a significant decision that can profoundly impact the trajectory of a business. This calculated risk necessitates meticulous planning and a clear-eyed view of both potential rewards and potential losses. While loans can be the key to unlocking growth and opportunity, they also carry the potential for financial ruin if not managed responsibly. By understanding the intricacies of loan options, conducting thorough financial analysis, and building a strong credit history, entrepreneurs can significantly increase their chances of turning a loan into a powerful tool for business success, transforming it from a potential make-or-break decision into a strategic advantage.
————–
If you have any questions or would like to share your thoughts on the column, feel free to send an email to jca.bblueprint@gmail.com. Looking forward to connecting with you!
It was this writer’s impoverished province of Samar, through its officials, that responded to the emergency caused by the closure of the iconic San Juanico Bridge. The action was to declare the province under a state of emergency. The primary purpose is to tinker with the reserved calamity fund for an emergency that is far from the usual calamity for which the reserved fund is intended for.
The situation had actually caught the attention and concern of the national government which had given instructions to the concerned national agencies, chiefly the public works and highways department, to prioritize the repair of the bridge. It would be recalled that the sudden closure of the bridge which banned heavy vehicles weighing over three tons.
The affected vehicles and passengers scampered for alternatives as some loads were essential like food items and perishable. There were no ready solutions for such emergency and it took several days for the affected travelers to receive assistance from the local government units in the affected areas of Santa Rita, Basey and Tacloban.
The stranded drivers and crew were forced to seek financial help from their principals, usually from the vehicle owners. Food and water supply became scarce at the onset of the emergency. The local governments eventually came up with food and water to support the stranded drivers and crew of the buses and trucks that were barred from crossing the bridge.
The intention of tapping the calamity fund as a quick response to the emergency may be motivated by good intention considering that the current budget of the local governments had already appropriated. It is only the reserved funds that may be used on the basis of an artificial calamity that is manmade due to utter neglect by the same government agencies that is now under pressure to allocate needed funds.
Already, the city of Tacloban had also issued a similar declaration of a state of emergency following the action of Samar officials. There is hope that other local governments in the affected areas will likewise move to declare their localities as under a state of emergency. This will lead into the utilization of the calamity fund that it primarily reserved for calamities, disasters and other emergencies. People could just be hopeful that their needs would be served.
Efforts to gather resources from national government agencies are being facilitated just to raise the needed funds. What is needed is people vigilance to guard the calamity funds not to be misappropriated to personal pockets of corrupt women and men in both government and private sectors. It is the people in the affected areas that must do their share to ensure that the calamity fund. Indeed, there is no other aim but to spend the reserved calamity fund on the basis of a man-made emergency.
TACLOBAN CITY – As he enters his final term, Leyte 5th District Rep. Carl Cari has pledged to ramp up infrastructure, education, and health initiatives across the district.
“I will continue to pour out infrastructure projects, as well as financial and medical assistance, especially to the needy,” Cari said.
He also committed to supporting mayors pushing for new high schools and vowed sustained funding for the district’s newly opened College of Medicine.
Cari said he plans to deliver more projects in the next three years to leave a lasting impact on his constituents.
TACLOBAN CITY– Residents of Borongan City may soon enjoy significantly lower electricity bills as the city government pushes forward with its ambitious hydroelectric energy project in Barangay San Gabriel.
Mayor Jose Ivan Dayan Agda, speaking during the city’s 18th Charter Day Gala Night on June 20, reaffirmed his commitment to deliver on one of his major campaign promises—tapping renewable energy sources to power Borongan and bring down the cost of electricity.
Agda cited a Department of Energy (DOE) survey confirming that the inner river in Sitio San Gabriel can produce up to one megawatt of clean, renewable energy.
As an initial step, the city will tap the Calingatngan Dam, which can generate up to 480 kilowatt-hours, with future plans to develop San Mateo, which has a potential output of 7 to 9 megawatts.
“If households today pay around P14.00 per kilowatt-hour, the power from San Gabriel hydro could cut that down to as low as P7.00,” Agda said. “That’s a 50% savings—money that could go to food, school, or health expenses.”
To support the project, the city has already begun constructing an access road to the remote sitio where the hydro facility will be located.
Mayor Agda called on all stakeholders to support the initiative, saying the success of the renewable energy program hinges on collaboration between the local government, communities, and national agencies.
Aside from the hydro project, Agda also plans to strengthen the Calingatngan Dam not just for power generation, but also to expand access to potable water in the city proper and surrounding barangays. While the city has begun providing water to Barangay Bugas, Agda emphasized the need for a 24/7 water supply across all areas.
“We’ve made progress, but we want every household to have consistent, year-round access to clean water,” he said.
With both power and water infrastructure in the pipeline, the city government hopes to improve the quality of life for Boronganons while reducing utility costs and promoting sustainable development.
TACLOBAN CITY – The newly opened ANTA Superstore at Robinsons Place Tacloban is off to a strong start, drawing steady foot traffic and high sales since its launch, making it one of the brand’s most successful outlets in Southeast Asia.
ANTA Philippines General Manager JP Paglinawan said the Tacloban branch has exceeded expectations, crediting the strong local demand for quality, performance-driven sportswear and footwear at affordable prices.
“We saw the opportunity in Tacloban, and the response has been incredible. It shows there’s a strong appetite for quality gear here,” he said.
The store offers a wide selection of athletic and lifestyle apparel, including exclusive lines from NBA stars Kyrie Irving and Klay Thompson, and running gear available only in ANTA Superstores.
With the new school year approaching, ANTA also plans to partner with local schools to support young athletes through gear sponsorships and sports programs.
“We’re excited to work with Tacloban schools to help student-athletes compete and develop,” said ANTA PH Head of Marketing Mikko Abello.
Paglinawan added that the Tacloban store’s performance is now a model for future expansion across the Philippines.
The ANTA Superstore is located on Level 1, Robinsons Place Tacloban, and is open daily from 10:00 AM to 9:00 PM.
Some of the day-old chicks. (Photo: Christian Humphrey Lapeciros)
By Aaron A. Cotejar
Some of the day-old chicks. (Photo: Christian Humphrey Lapeciros)
Christian Humphrey Lapeciros, a young agriculture enthusiast from Paranas, Samar, witnessed the harsh realities of farm life — days under the scorching sun, unpredictable harvests, and the perception that farming was a dead-end profession.
“Mahirap talaga ang pagsasaka, tapos may stigma pa tayo na kapag hindi ka mag-aral ng mabuti, magiging magsasaka ka (Farming is really hard, and we still have a stigma that if you don’t study hard, you’ll become a farmer),” he recalled.
Christian also sells his upgraded native chickens at the Kadiwa ng Palo. (Photo: Christian Humphrey Lapeciros)
He added that his childhood friends and cousins were reluctant to enter the agricultural sector, with many leaving to work as construction workers, call center agents, or moving to Manila to look for the proverbial greener pasture. For them, farming was a sign of failure rather than success, often associated with poverty or a lack of educational achievement.
Lapeciros’ claims align with findings from a 2020 research by Florencia G. Palis, which revealed that Filipino rice farmers are aging and often discourage their children from following in their footsteps due to physical, psychological, and financial challenges.
Additionally, rice farming is labor- and capital-intensive, with low and uncertain incomes, making it a last resort for many. As a result, these parents hope their children will seek non-farm jobs in urban areas or abroad for better stability and to escape poverty.
“Nakikita talaga na isa itong katotohanan na kumakaunti na lang ang nagkaka-interes sa pagsasaka. Kung hindi ako ang papasok, sino? (It’s really clear that fewer people are interested in farming. If I’m not the one to get involved, who will?),” Lapeciros said.
Driven by this reality, Christian made a choice: he pursued a degree in Agribusiness at Visayas State University (VSU), graduating magna cum laude in 2024. He studied not to escape farming, but to redefine the farming narrative in Samar.
“So, yan ang naging inspirasyon ko upang tahakin ang kursong BS Agribusiness, upang patunayan hindi lamang sa komunidad, kundi patunayan na rin sa sarili ko na may pera sa agrikultura at maraming oportunidad ang naghihintay sa ganitong larangan (So, that was my inspiration to pursue the BS Agribusiness course, to prove not only to the community but also to myself that there is money in agriculture and that many opportunities are waiting in this field),” he explained, highlighting that for him, education was not an escape from farming — it was the key to elevating it.
Through his recent initiative, Project FAITH (Food Always In The House), he has transformed his community and is shaping the future of agriculture. His hard work has secured him a place in the regional selection for the 2024 Young Farmer Challenge (YFC) program in the Department of Agriculture (DA) start-up production category.
Project FAITH began during the COVID-19 pandemic as a family initiative for food security and has evolved into a community empowerment effort. It focuses on upgraded native chicken farming, involving a crossbreeding of Parawakan Native Chicken and Black Australorp to produce resilient, fast-growing, and high-yield poultry.
“Nakitaan namin ng potential ang Project FAITH, pwede siya maging adbokasiya at ibahagi sa komunidad upang makatulong at makapagbigay ng hanap buhay para sa ibang pamilya sa Samar (We saw the potential of Project FAITH; it can be an advocacy and shared with the community to help and provide employment for other families in Samar),” he said.
Christian aims to incubate 150 eggs weekly, targeting an 80% hatching rate. The eggs hatch every 21 days and are then transferred to the brooder house for a month.
The farm now focuses on producing day-old and three-month-old upgraded native chickens, which are sold to backyard raisers and aspiring farmers, many of whom come from disadvantaged backgrounds.
The cycle repeats with new incubation. Prices are 100 pesos for day-old to week-old chicks and 300 pesos per kilo for three-month-old upgraded native chickens.
His farm project stands out for its mission to uplift marginalized individuals, including former rebels, drug users, parolees, violence survivors, and out-of-school youth.
Through training and resource support, Christian helps them not only receive aid but also become part of a sustainable agriculture ecosystem.
“Binibigyan naming sila ng oportunidad na maging produktibong miyembro ng komunidad, makapag-hanapbuhay sa pagpaparami nang upgraded native chicken (We’re giving them the opportunity to become productive members of the community, earning a living by breeding upgraded native chickens),” he said.
He reported that the project benefited about 500 individuals from Jiabong, Paranas, San Jose de Buan, Tagapul-an, Calbiga, Catbalogan City, and Matuguinao, Samar.
“Ang Project FAITH ay napaka gandang proyekto lalong-lalo sa katulad kung may hilig sa pagmamanok. Natulungan ako nitong palaguin ang aking manokan, at kung paanong pamamaraan ang dapat kong gawin sa aking manokan. Nakatulong rin ito sa aming komunidad para mahikayat ang mga kabataan na pumasok din sa ganitong larangan, at mailayo ang kanilang interes sa mga masasamang gawain o bisyo (PROJECT FAITH is a very good project, especially for those interested in chicken farming. It helped me grow my chicken farm and taught me how I should manage it. It also helped our community encourage young people to enter this field and keep their interest away from bad activities or vices),” said Ronel G. Llano, a beneficiary of the project from Jiabong, Samar.
Lapeciros’ early challenges in chicken breeding, marked by high mortality rates, were addressed with guidance from his former VSU professors and DA technical staff, leading to improved methods and a stronger business model.
“Remember that farming is not just about cultivating crops. Don’t be afraid to take risks and challenges. Every seed you plant, every crop you harvest, and every decision you make has the potential to create positive change,” said Francisco C. Rosaroso, chief of the Agribusiness and Marketing Assistance Division (AMAD) of the Department of Agriculture RFO8, during the Enterprise Development Training.
With funds earned from the provincial (80,000 pesos) and regional (150,000 pesos) levels of the YFC program, Christian has expanded his farm’s infrastructure by building breeder houses, incubators, brooder houses, and a 400-meter free-range grazing area. He also plans to build a feed and concoction formulation room and a water system, and purchase an electric generator, adding more production to the farm.
“Sa budget na nakuha ko sa Young Farmers Challenge, mas napaganda ang produksyon at mas madali na naming na mo-monitor ang aming manokan (With the budget I got from the Young Farmers Challenge, production has improved, and it is now easier for us to monitor our chicken farm),” he expressed.
Christian’s next big dream is the Project FAITH Farm-to-Table Kitchenette, a social enterprise that will serve dishes made from locally raised native chickens by his beneficiaries. He acknowledged the support of the DA, VSU, and the Samar Police Provincial Office, who trusted in him as a visionary youth farmer and contributed to his achievements.
A visionary youth farmer like Christian Lapeciros is changing the narrative around farming by combining academic excellence, grassroots empathy, and entrepreneurial vision. With Project FAITH, he proves agriculture can be dignified and profitable, raising hope and empowering a new generation of farmers. (AAC, PIA Samar)
The double-edged sword: How loans can make or break your business
Securing a loan can feel like a pivotal moment for any business. It’s a chance to fuel growth, expand operations, or weather a storm. However, the path to financial freedom paved with borrowed funds can be treacherous. Getting a loan is a double-edged sword; it offers immense potential for success, but also carries the significant risk of failure if not managed carefully. This article will explore both sides of this equation, highlighting the crucial factors that determine whether a loan becomes a boon or a bane for your enterprise.
The Upside: Fueling Growth and Opportunity
For many businesses, loans are the lifeblood of expansion. Access to capital allows entrepreneurs to pursue opportunities that would otherwise remain out of reach. This could involve purchasing essential equipment, hiring skilled employees, investing in marketing campaigns, or developing new products or services. A well-planned loan can unlock significant growth potential, leading to increased revenue, market share, and overall profitability.
Consider a small bakery struggling to meet the demand for its artisan bread. A loan could enable them to purchase a larger oven, hire additional bakers, and expand their retail space. This investment directly translates into increased production capacity, wider distribution, and ultimately, higher profits. The loan, in this case, acts as a catalyst for sustainable growth. Similarly, a tech startup might leverage a loan to develop a crucial software feature or conduct extensive market research, positioning them for a successful product launch and attracting investors.
The Downside: The Risks of Overextension and Debt
While loans offer tremendous opportunities, they also present significant risks. The most prominent danger is overextension. Borrowing more than the business can realistically repay can lead to a vicious cycle of debt. Missed payments, accruing interest, and potential legal action can quickly cripple even the most promising ventures. Careful financial planning and realistic projections are paramount to avoid this pitfall.
Imagine a restaurant owner taking out a large loan to renovate their establishment without thoroughly analyzing the potential return on investment. If the renovations don’t attract enough new customers to justify the increased operational costs and loan repayments, the business could find itself drowning in debt. This scenario highlights the importance of conducting a comprehensive financial analysis before applying for any loan. Understanding cash flow projections, break-even points, and potential risks is essential to making an informed decision.
Navigating the Loan Landscape: Key Considerations
Successfully navigating the loan landscape requires meticulous planning and a clear understanding of the available options. Entrepreneurs should explore various loan types, including term loans, lines of credit, and SBA loans, each with its own terms, conditions, and suitability for different business needs. Comparing interest rates, repayment schedules, and associated fees is crucial to securing the most favorable deal.
Furthermore, building a strong business credit history is essential for securing loans at competitive rates. Maintaining a good credit score, timely payment of bills, and accurate financial reporting all contribute to a positive credit profile, making it easier to qualify for loans and negotiate better terms. Networking with financial institutions and building relationships with lenders can also provide valuable insights and support throughout the loan application process.
Conclusion: A Calculated Risk
Securing a loan is a significant decision that can profoundly impact the trajectory of a business. This calculated risk necessitates meticulous planning and a clear-eyed view of both potential rewards and potential losses. While loans can be the key to unlocking growth and opportunity, they also carry the potential for financial ruin if not managed responsibly. By understanding the intricacies of loan options, conducting thorough financial analysis, and building a strong credit history, entrepreneurs can significantly increase their chances of turning a loan into a powerful tool for business success, transforming it from a potential make-or-break decision into a strategic advantage.
————–
If you have any questions or would like to share your thoughts on the column, feel free to send an email to jca.bblueprint@gmail.com. Looking forward to connecting with you!