b.

Sources of the investment and initial capital

Business Loan
Startups need funding or capital to begin their operations and start earning profit. Banks and
financial institutions lend this money in advance to businesses through a business loan. In turn,
lenders collect payments with interests based on the agreed-upon payment schedule and
lending agreement.

A startup business loan in the Philippines is a financing opportunity in which lenders provide
funds to borrowers who will start a business, expand it, or pay off debts and other expenses. For
whatever purpose they may serve, business loans are a relief to entrepreneurs who need extra
funding for their operations.

Banks and financial institutions have different eligibility criteria. However, here are the most
common business loan requirements:

● Must be a Filipino citizen aged 21 but not older than 65 when the business loan matures
● Should have an SEC-registered or DTI-registered business with at least three years of
profitable business operations
● Must meet a minimum annual gross sales
● Good credit standing

Basic Business Loan Requirements

Prepare the following documents when applying for a loan to start a business in the Philippines:

● Valid government-issued ID (Passport, Driver's License, TIN ID, PRC ID, Postal ID, or
UMID)
● Proof of business billing address (Business Permit, Lease Contract, Utility Bills)
● DTI or SEC Certificate
● BIR Certificate of Registration
● Photocopy of audited financial statements
● Business background/company profile
● Accomplished loan application form
Estimated Investment

The Estimated Investment shows a detailed list of materials and equipment that will be used
for a certain business. Investment is an asset with the goal of generating an income. This includes
purchasing machinery, computers, software, vehicles, or anything that can increase your production
and reduce operating costs.

The table below reveals the materials and equipment that the business “Siling Labyu” will
use in their production and operations.

Sources of investment and initial capital.

Initial capital - refers to the amount of money or resources that an individual or organization has available at
the start of a business or investment venture. This capital is typically used to cover the initial costs associated
with the starting venture, such as purchasing equipment, securing a location, and hiring employees. In this
business venture, the initial capital consists of three main sources namely; the shares of the student owners,
bank loans, and sponsorships.

Sources of Investments - refers to an entity from which an investor can obtain funds to invest in a particular
opportunity or project. In other words, it is where an individual or a business acquires the necessary capital to
pursue an investment opportunity. The sources of the investments are equivalent to the Initial Capital that
will be utilized in this business venture.

Below is the table showing the total initial capital of the Siling Labyu Business.