Unlocking Capital: How Banks Can Empower Businesses With Access to Finance.

Access to capital has always been a persistent concern for businesses. Whether it’s about expanding, upgrading production facilities, or simply maintaining stable operations, financial resources are essential. In response to this pressing need, Resolution 68 of the Central Committee emphasized the pivotal role of the private sector, becoming a crucial driver for the country’s breakthrough. In this context, banks proactively design tailored financial solutions, facilitating easier access to capital for businesses.

The role of banks becomes even more evident when considering the approximately 5 million active business households in the country. In the Ministry of Finance’s draft tax management proposal, these households are categorized into four distinct segments: Group 1 with an annual turnover below VND 200 million; Group 2 ranging from VND 200 million to VND 1 billion; Group 3 comprising agricultural, industrial, and construction businesses with a turnover of VND 1–3 billion and trade and service businesses with a turnover of VND 1–10 billion; and Group 4 consisting of households with a turnover exceeding VND 10 billion.

Consequently, banks need to develop a range of loan packages to cater to the diverse capital requirements of these groups. State-owned banks such as Vietcombank, BIDV, and VietinBank offer supplementary working capital loans and business expansion loans with preferential interest rates depending on the industry. Agribank, specializing in agriculture, has also introduced products tailored for business households in the agricultural sector.

In the private sector, many banks have launched flexible and diverse loan products for business households. Among them, BVBank stands out by offering customized solutions that cater to the unique needs of each customer segment.

For business households in Groups 2 and 3, which have stable cash flow and expansion plans, BVBank provides loans based on their actual cash flow. This includes considering factors such as tax payments, CASA balances, or deposits. Customers can borrow up to 20 times their CASA balance or twice their deposit balance, with interest rates starting from 5.99%/year and various loan options.

For households requiring timely capital to maintain their production and business operations, easy access to funds, simplified procedures, and quick disbursement are top priorities. BVBank addresses these concerns with its “immediate capital” package, offering a credit limit of up to VND 1.5 billion, an interest rate of 0.99%/month, and a maximum loan term of 60 months.

In addition to the above loan policies and products, another attractive option for many business households in the market is the real estate loan package. This package allows them to either own their business premises or invest in real estate for the long term. With a maximum loan term of 25 years, a grace period of up to 36 months, competitive interest rates from 5%, or a fixed rate for the first 24 months, flexible limits, progressive repayment methods, and quick approval processes, this product is highly appealing in the current market conditions.

The worry of renting business premises, with its associated monthly costs and the hassle of finding a new location when the lease expires, is now a thing of the past. Business households can easily own their preferred business premises and also have the opportunity to build long-term wealth.

The increasing diversity of loan products, tailored to meet customer needs, and simplified procedures are significant steps in empowering business households to thrive. This also means that by opening up access to capital for businesses, banks are contributing to the sustainable growth of the overall economy.