LORRIE PIZZAÑA: "I was pleasantly surprised to find an institution that offered lease-to-own equipment without collateral."
In 1998 Lorrie Pizzaña and three of her friends pooled their money to raise P3 million and open Beanhoppers Coffee bar along Katipunan Avenue in Quezon City.
"When we started, the coffee shop market was not yet saturated," she says. "But we did not set out to make Beanhoppers a big business. It was just a hobby to us." Indeed, in 2002 her friends sold their shares in Beanhoppers to her to concentrate on their individual businesses, but by that time Lorrie had franchised the "hobby" in Metro Manila, Cebu and Laguna.
Left alone, Pizzaña knew she must look for other sources of capital to expand her business, and when she decided to open a company-owned branch in Tomas Morato early this year, a friend introduced her to an officer of Japan-PNB Leasing & Finance Co. who offered her equipment financing. Japan-PNB bought P500,000 worth of coffee machines, display refs, and air conditioners for the new store and leased it to her at P18,000 a month for three years, after which she would own the equipment. All she did was submit an application form and some business documents and pay a security deposit, and it was approved in less than a month.
Pizzaña thought the financial package was perfect for small and medium enterprises like hers. "Other lending institutions required me to have some collateral before they would finance me," she says, "so I was pleasantly surprised to find a lending institution that offered lease-to-own equipment without collateral. It was a good deal because, instead of forking over P500,000 all at once, the money we saved went to finance other expenses and our other day-to-day operations."
LEASE FINANCING 101
If you'd rather use your money for operating expenses than tying it down to costly equipment, then lease financing is for you. It's better than borrowing because it requires no collateral and allows you to use your credit line for other purposes.
"We buy the equipment for our clients and in return lease it to them for a defined period of time," says Bricky Carandang, account officer for Japan-PNB Leasing & Finance Corp. The company also offers a sale-and-leaseback package, which allows a company needing additional financing to sell its equipment to Japan-PNB Leasing and then lease it back for a specified period.
The company says it can customize any of its financial packages to fit a client's needs. "With leasing, you conserve your cash and use ours to enhance your business," says Carandang.
Telephone: (02) 687-7634
Japan-PNB Leasing and Finance Corp.
Telephone: (02) 812-3872
Fax: (02) 893-0093