Property (TCT) as collateral of customers

[niwde11]

Ang problem is majority of our customers e sa palengke. Will banks give them LCs?

We also limit the transaction kung lumalaki na ang utang. We wait for the next check to clear before we deliver their orders. Ang problema, the customer will buy from my competitor. Ayaw ko sanang maka-porma yung competitor dito sa area ko.

thats why yung first suggestion ko is open deed of sale. pag ganyan talaga mga client mo parang di feasible ang mga bonds at yung ibang sinasabi nila.

[jon777]

Ang problem is majority of our customers e sa palengke. Will banks give them LCs?

We also limit the transaction kung lumalaki na ang utang. We wait for the next check to clear before we deliver their orders. Ang problema, the customer will buy from my competitor. Ayaw ko sanang maka-porma yung competitor dito sa area ko.

Some rural banks MIGHT give them an LC depending on previous bank transactions. Some rural banks are aggresive in expanding their business, some are very conservative.

Mahirap nga kung may competitor tapos mahaba din ang pisi niya. yan nangyari sa friend (friend A) ko selling hotdogs. pumasok ang isa pa naming friend (friend B) na mas mahaba ang pisi. na-pirate customers ni friend A, it only took 3 years for friend A to go belly up. Nalugi at nagsara. Ngayon, si friend B contemplating on closing the business since he got what he wanted already and that is to bankrupt friend A. Friend B is uber wealthy, well, not billionaire in dollar terms but in peso terms

Friends A and B fought because of a GIRL, can you imagine that....

[tsupermario]

Another downside for bonds and mortgage is that when the debtor defaults, the creditor always initiates the action. While when a debt is "secured" by a pacto de retro sale, the creditor will just sit and allow the time to pass by so he can consolidate the title in his name. This is not so in surety and guaranty. When the guarantor negates responsibility, you need to file a case in court. While in pacto de retro, the vendee a retro has the property so it is now incumbent upon the vendo a retro to challenge the same in court. It actually boils down to payment of, at times, unconscionable docket fees. In pacto de retro, the vendee a retro may set up a compulsory counterclaim. In compulsory counterclaim, you don't pay the docket and just the same your claims and defenses are adjudicated in the same transaction.

In pacto de retro isnt it that you will have to transfer the title of the property to the name of the creditor? Kasi if not baka ma transfer sa iba. Wouldnt that be more expensive than a real estate mortgage?

[ab_initio]

In pacto de retro isnt it that you will have to transfer the title of the property to the name of the creditor? Kasi if not baka ma transfer sa iba. Wouldnt that be more expensive than a real estate mortgage?

you don't transfer the title yet until the happening of the condition that favors consolidation of the title to the vendee a retro. as to possession: yes the vendee can possess it. Possession is a better attribute of ownership. It can be perfected through consolidation if the debtor or the vendor a retro cannot pay at the stipulated time. This is easier to manage on the part of the creditor. The burden is on the vendor to extinguish his principal obligation. Kung ayaw mo palaging maghahabol, mas maganda to.

[ab_initio]

In pacto de retro isnt it that you will have to transfer the title of the property to the name of the creditor? Kasi if not baka ma transfer sa iba. Wouldnt that be more expensive than a real estate mortgage?

you don't transfer the title yet until the happening of the condition that favors consolidation of the title to the vendee a retro. as to possession: yes the vendee can possess it. Possession is a better attribute of ownership. It can be perfected through consolidation if the debtor or the vendor a retro cannot pay at the stipulated time. This is easier to manage on the part of the creditor. The burden is on the vendor to extinguish his principal obligation. Kung ayaw mo palaging maghahabol, mas maganda to.

[mark.1]

Property investment is the investment which will not let your investment down. As the property prices are increasing day by day and those who have already invested they are enjoying huge return. So i must say you should invest in property in order to enjoy a good profit.

[Phoenix67]

Yes, I'll be the creditor/supplier. Lumalaki na kasi purchases ng ilang customers and nakakatakot na. I'm thinking of requiring them to give collaterals para mataasan ko sa credit limit nila.

If they are selling it in cash....i suggest maghigpit ka na lang sa credit limit at collection nila. Lalo na king ang product mo is a low margin perishable commodity. Chances are, kaya sila lumalaki ang purchase is because they are getting bigger market share ... OR pinapaikot lang nila pera mo kasi relax kang magpautang sa kanila.

Aanhin mo ang colateral properties kung mawawala ang iyong liquidity. Even if magdefault sila at marepo mo properties nila, maapektohan pa rin negosyo mo dahil ang liquidity mo affected na rin.

Of course you can disregard my opinion kung ang product is a low input, high margin product (as in 300 to 1000% mark-up type).