Customizing banking service based on client needs

2019 March – Cash flow management is a challenge for many businesses, especially at the start. Without collateral, it’s difficult to secure a bank loan.


And without stable capital support, a company's day-to-day operations and future expansion plans could be put in peril, and eventually spell the end of the entire business.


Hyper Kem and Machineries, Inc., a company that offers water/wastewater treatment chemicals and equipment to various industries, faced such a quandary during their maiden years.


“We were looking for a loan then but had a dilemma: how can we get a loan without collateral? The buildings that we use are just rented, so they can't be used as collateral,” explains Hyper Kem President Robert “Bobby” Santos.


Fortunately, Hyper Kem soon found a financial institution that finds ways to attend to a client's needs, including providing a loan even sans collateral.


With their office located in Calamba, Laguna, the company soon forged a partnership with BDO, specifically its Calamba-Paseo Uno branch.


“The plant was in Calamba before and the office was in Alabang. We had a hard time communicating with management and production, so I decided to just move to one location (Calamba) in 2007. And so we wanted to secure a loan for our expansion. BDO came in and had a good offer,” Bobby adds.


Branch head Wilda Solis reached out to Bobby and his wife Cristy with an offer that was previously unheard of for the couple.


“Wilda came to us, talked to us, and offered us an option called factoring,” Bobby narrates.


Factoring allows a business to obtain immediate capital based on the future income attributed to a particular amount due on an account receivable or business invoice. It allows other interested parties to purchase the funds due at a discounted price in exchange for providing cash up front.


“Before, our concept of banking is if you want to avail of a loan, you have to have collateral. I thought then that our options were limited,” says Bobby. “All BDO needed was our invoice, as a proof that we're delivering to that company (client), and that company has a good record of paying as well. They will be one to collect from our customers. Only BDO offered this kind of product to us.”


“All our chemicals and equipment were purchased in cash. It was so capital intensive. Then the turnaround was three months. We thought then that we cannot move if we always use cash. We always have to wait for three months. We asked Wilda, ‘what can we do?’ So, Wilda told us what we can avail. Once the bank saw us maximize our availment, they offered us different types of transactions. They are very flexible with their terms,” Cristy says.


As the business of Hyper Kem grew, so did their capital requirements. Once again, the couple turned to their bank.


“We started small then as the business grew, we were closing bigger projects. So I told Cristy, ‘let's sit down with BDO. Maybe the bank can help us further expand, aim for something higher’,” Bobby explains.


Soon thereafter, Hyper Kem also beefed up its service vehicle fleet through the bank’s auto loans, as well as insurance for its personnel via Generali Pilipinas (now BDO Life).


Established in 2003, Hyper Kem provides quality products and technical assistance to industrial wastewater treatment, potable water treatment, sugar, paper applications, mining, and other related industries. It has chemicals for wastewater treatment; products for sugar milling and refinery; process chemicals for paper application; products for potable water; and products for boiler and cooling water treatment.


From purely chemicals, the company now offers a total turnkey solution to its clients.


Partnering with the bank helped the company establish a strong foothold in the business. Now, Hyper Kem frequents exhibitions, forums, and trade shows in the US and Singapore where Bobby and Cristy regularly rub elbows with prospective clients and partners.


Hyper Kem's relationship with BDO forever changed the couple's concept of banking.


“That's what I like about them. They're very flexible. They have weekend banking. They have branches inside SM malls. They are willing to adjust to the client's needs. If we have concerns, all it takes is one call and our concerns will be addressed,” Cristy adds.


All the couple's four kids also became members of BDO Junior Savers Club, a savings account designed for children 12 years and below. With an initial deposit of just P100, children can open a bank account and start growing interest. Their elderst, Roberta, who has already graduated from college, is already thinking of opening another account with the bank for her own business and for investment purposes.


“I'll enroll in online banking and then invest in stocks through BDO Nomura,” she says.


Spouses Bobby (5th from left) and Cristy (4th) Santos, founders of Hyper Kem and Machineries, Inc., are joined by their children and BDO Calamba-Paseo Uno branch head Wilda Solis (leftmost).


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