balikbayad Blog

OFW life is not forever. That’s true. In fact, there is even a possibility that you might not even finish your contract due to uncontrollable circumstances. This is why it is important to use your money wisely and place it in something that will help you grow it.

One of them is putting up your own business.

The good thing about business is that this could help you get through everyday without having to go back abroad. The downside is putting up your own business is not easy, especially if you don’t have sufficient capital – yet. To make this happen, you decided to go to lenders to borrow money for capital.

The catch: you need to submit a business plan. 

A business plan is a document that indicates the nature of the business, financial background, sales and marketing strategies to be employed, and a projected profit-loss statement. Think of it as a roadmap that will guide you as you go through this track and what to do in case of any road bumps.

Apparently, most lenders require submission of business plan in case you are thinking of getting a business loan. How do you write it? Here’s how:

Step 1: Identify your business concept. 

Apparently, that “Eureka” moment is just one step of being an entrepreneur. This has to be followed up with a mission and vision that reflects why you want to put up this business, the product or service that will address a specific need in the market, who your target market is, unique selling points of what you are offering, and branding.

Step 2: Learn about your target market and chosen industry. 

This is a must. You need to know what your target market demands and at the same time, learn about your competitors and what they are offering. Look into the trends in your chosen industry and data about your competitors. At the same time, get to know your target market by gathering insights through social media websites. This way, you will know what the market and industry demands and find out a solution to address it.

Step 3: Create and develop your business plan outline.

It should contain the following:

• Executive Summary – This gives a brief overview of your business, nature, and your unique selling points or edge against competitors. It is also best to include your qualifications that could be useful in your chosen business.
• Marketing Plan – This should show how you will market your product or service. Therefore, indicate your market demographics, product or service offerings, analysis of competitors, and marketing strategies you will utilize to achieve sales.
• Production Plan – You need to convince the lenders that you are capable of handling a business – and this is the part where you do it. Inform lenders about the production process – raw materials, equipment, overhead expenses, and labor among others.
• Organization and Management Plan – This is the part where you convince lenders that you are worthy of credit. Indicate your qualifications and if any, experience as a business owner.
• Financial Plan – This portion shows the financial strength of your business. Include sales and profit forecast, breakeven analysis, cash flow statement, and return on investment. Since you are applying for a loan, make sure you indicate a time frame for loan repayment as well as your plan in case you of delay.

Step 4: Include supporting information. 

Legitimacy is important, especially if you will need help from lenders. Therefore, you must be able to provide and attach the following documents in your business plan to show you are serious in your business venture:

• Bank statement
• License to operate
• Business permit
• DTI certification, if sole proprietorship
• Financial documents pertaining to your business such as Contract of Lease, Purchase Order, etc.

Step 5: Review and proofread. 

The concept of business plan is to lay down your business and prove to lenders that you are worthy of credit. Now that you filled in the details, it’s time to check your work and make sure that your business plan is error-free. Review and proofread your work by correcting spelling or grammar issues and check for any typographical errors. It won’t be much of a difference, but it will show lenders that you really did your work.

“Kailangan pa ba yan?,” you might ask. Yes, especially if you plan to apply for a loan. Even if you don’t plan to apply for a loan, it is still advisable to draft your business plan that will act as your guide.

Once you’re done, you should know that Balikbayad is here to help. Submit your online loan application for pre-approval and let us help you make this entrepreneurial dream happen.

“Hindi ko yan alam” or “Hindi ko naman yan maintindihan,” says the common people. In fact, this line is abused every time people are asked about savings, investments, assets and liabilities, and any other concepts related to it.

Unlike decades ago, information has become accessible, thereby making it easier for you to learn and understand certain concepts you didn’t learn in school. At present, you can simply type a term you don’t understand and the search engine will launch thousands of information about it.

Or, you can check out these free learning resources specifically designed for OFWs:

Personal Finance Blogs that Target OFWs

Blogs are popular these days. Instead of learning about the latest gadgets, why not fill your brain tank with concepts that will help you on how to better manage your money and finances in general.

There are many personal finance blogs written by former OFWs themselves, which you can learn from. Read about financial tips, extra income opportunities, investments, or even the struggles most Filipinos experience from working overseas. Balikbayad also offers tons of tips and strategies that you can find useful, so make sure you read the blog regularly.

Online Financial Communities

Groups are everywhere. One good thing about Internet is that it allows you to connect to people regardless of location. You also have the ability to form a group with other people with the same goal as your common denominator.

Thankfully, there are financial groups online that aims to help and educate OFWs about money matters. These groups also hold seminars and trainings about anything that involves money or financials. You, the OFW or any of your family member could attend.

Examples of OFW Financial Groups are Overseas Filipino Stock Investors, which focuses mainly on stock investment, and The Global Filipino Investors, which discusses all about money matters both in the Philippines and abroad. Join any of these groups to help you in understanding the financial world better.

Entrepreneurial Development Training from OWWA

The government supports every Filipino migrant worker because of your contribution to the country. In fact, they do so with the help of OWWA.

One of the services offered by OWWA is the Reintegration Program, popularly known as OWWA Loan. Before you can submit your loan application, you will be required to attend the Enhanced Entrepreneurial Development Training or EEDT. This training, in partnership with DTI, will discuss:

• How to start, manage, and sustain a business
• Financial and business management
• Preparation of business plan
• For agricultural ventures, hands-on experience in coordination with Department of Agrarian Reform or Department of Agriculture
• For non-agricultural business, management, technical, and networking skills with TESDA and DTI

The catch: you have to be an OWWA member, so make sure to pay your dues to enjoy this benefit. To learn more about EEDT, you can contact OWWA at 8917601-24 local 5516/5517

Why should you take time going through these resources?

The answer is simple: it will help you and keep you informed. 

It is tempting to venture into a business or put your money in an investment that you believe could help you (only to realize that it won’t in the long run). Even if these are made accessible, you still need to educate yourself about certain concepts to help you make the best decision on how to grow your hard-earned money. The more informed you are, the better your decision-making and handling skills will be, so read up.

Being an OFW is not easy. In fact, there is no certainty. You could be sending dollars this month and then the following month, you are on your way back to the Philippines. This is why here in Balikbayad, we constantly push for financial freedom to help OFWs like you become sustaining even after your stint abroad.

There are many ways to do that. Investing your money is one way to grow it, but if you really want to sustain the lifestyle, then putting up your own business can be your ticket to success.

Here’s the thing: not all OFW entrepreneurs are successful in business. In fact, there are many who fail even before they reach their first year – and don’t blame it on time difference or distance between Philippines and whatever country you are assigned to. A lot of factors could attribute to such failure, including these five common mistakes:

Mistake No. 1: Unable to identify skills, talents, or something you love to do. 

They say pursue your passion while others say focus on something you are good at. Regardless, your business should also be a reflection of you, which is why you are encouraged to identify first what it is that you really want instead of just jumping in the bandwagon.

Keep in mind that the most successful people are those who love what they do. Identify that one thing you want to pursue and work on from there. You will be able to enjoy what you’re doing if you love your business from the beginning.

Mistake No. 2: Getting into a business you are not familiar with. 

There is a reason why OWWA requires Enterprise Development Training before you proceed with your OWWA Loan application. The EDT helps you determine the viability and sustainability of your chosen business and at the same time, give you an idea on what to expect and how to handle various business situations.

Therefore, don’t go into a certain business you are not familiar with. There are many training courses you can enroll at to give you an idea on how a certain industry works. Make sure to read tons of articles and watch videos about your chosen field to give you an idea on what to expect once you start your business venture. The more informed you are, the more capable you will be in handling the business.

Mistake No. 3: Lack of entrepreneurial spirit. 

Getting into business can be promising, but the question is how serious are you in handling it. The more important question is do you have what it takes to be an entrepreneur?

Having your own business is not easy. In fact, one of the reasons why many OFWs fail in their ventures is because they are not prepared for it not just financially but also mentally and emotionally. You need to have that spirit and drive going in order to make your business grow. Otherwise, you might have a hard time sustaining your business for long-term growth.

Mistake No. 4: Lack of to no motivation to make the business grow. 

You’re earning in dollars, your family is living a good life, and you are able to provide more than what they need. Why would you still want to risk your money and open your own business?

Well, for the simple reason that OFW life is not certain. Unfortunately, you don’t realize that – yet – because income is continuous. This explains why you are not motivated to make your business grow and become less aggressive in marketing it. This shouldn’t be the mindset because at the end of the day, there is a possibility that what you have might be lost.

We understand that there are financial constraints involved in opening a business. If you need working capital, Balikbayad is here to help. Send your application form online and we will get back to you as soon as possible.

In a previous post, we shared about POEA, its mandate, and the key services this agency offers to OFWs. Apparently, POEA cannot work alone. It needs another arm in ensuring that the rights and welfare of Filipino migrant workers are prioritized.

This is where OWWA or the Overseas Welfare Workers Administration comes into the picture.

Whether you are an existing Overseas Filipino Worker or an aspiring one, here’s what you need to know about OWWA and find out how they can help you.

Who is OWWA? 

Similar to POEA, OWWA is also an attached agency of the Department of Labor and Employment. The agency’s primary role is to protect and promote the welfare and well-being of OFWs and their respective families.

OWWA has two-fold mandate:

• Delivery of welfare services and benefits
• Ensure capital build-up and fund viability

Its main difference with POEA is that OWWA handles OFW concerns who are already working abroad.

What are the programs and services do OWWA offer? 

Social Benefits (can be availed during the duration of the contract)

• Disability and dismemberment benefits up to P100,000 for injuries sustained overseas
• Death benefits up to P100,000 for natural death and P200,000 if death is caused by accident

Education and Training Assistance 

• Country-specific Pre-Departure Orientation Seminar (PDOS), a mandatory seminar for all departing migrant workers,
• Comprehensive Pre-Departure Education Program (CPDEP), which is for Household Service Workers
• Seafarers Upgrading Program (SUP)
• Education for Development Scholarship Program (EDSP), which is a scholarship grant for qualified OFW beneficiaries or dependents who plans to enroll in a four- or five-year course in any preferred college or university.
• OFW Dependent Scholarship Program (OFWDSP), which is a scholarship grant for qualified OFW beneficiaries or dependents who plans to enroll in a four- or five-year course in a state college or university.
• Congressional Migrant Workers Scholarship Program (CMWSP) for either the migrant worker or immediate descendants who want to enroll in any Science and Technology course.
• Educational Livelihood Assistance Program (ELAP), which is in the form of allowance. This is given in case of death of OFW-OWWA member.
• Skills for Employment Scholarship Program (SESP) for technical or vocational courses
• Information Technology (IT) Training Program

Workers Welfare Assistance Program

• On-site assistance and services such as airport assistance, psycho-social counselling, mediation or conciliation with employer, and providing legal assistance among others.
• In-country assistance extended to OFW families
• Post-repatriation assistance such as temporary shelter, stress debriefing, transportation allowance, and referral.

Social Services and Family Welfare Services

• Repatriation Assistance Program for distressed, physically or mentally ill, and of human remains of the migrant worker.
• Reintegration Program or popularly known as OWWA Loan. The purpose of this program is to help OFWs find the most appropriate and sustainable business so you will no longer have to leave the country. Click here to know more about OWWA Loan.

Take note that OWWA membership is imperative to make sure you enjoy these programs and benefits. To become a member, you must pay a membership fee worth $25 (or its peso equivalent) once you apply as OFW.

Are you still curious about OWWA benefits? You can check this site to learn more about your benefits as OFWs.

Are you planning to work overseas? What about an Overseas Filipino Worker who just got back in the Philippines and seeking for another job opportunity abroad? Whether you are new, old, or aspiring OFW, you will have to go through this government agency called Philippine Overseas Employment Agency or POEA. 

Before heading overseas – and even planning to work abroad – here’s what you need to know about POEA:

Who is POEA? 

POEA is a government agency under the Department of Labor and Employment (DOLE). Its official mandate is to manage overseas employment programs by securing the best employment terms for Filipino migrant workers. At the same time, the agency is tasked to protect the rights of all OFWs and ensure fair and ethical recruitment practices.

Keep in mind that POEA is different from OWWA, especially in terms of purpose. POEA helps aspiring OFWs to achieve legal status through proper documentation before they leave the country while OWWA handles the concerns of OFWs who are already working overseas.

What does POEA do? 

Overseas Employment Facilitation

• Accreditation of foreign employers who hire OFWs
• Conduct pre-employment orientation seminars
• Approve job order or request for Filipino workers
• Evaluate and process employment contracts

Anti-Illegal Recruitment and Protection of OFWs

• Issue recruitment licenses to private recruitment and manning agencies
• Monitor and supervise manning and recruitment agencies
• Provide repatriation assistance for displaced OFWs
• Ensure that the countries allowed for deployment protect OFW rights (which must be certified by the Department of Foreign Affairs)
• Supervise anti-illegal recruitment programs throughout the Philippines
• Provide legal assistance to illegal recruitment victims
• Disseminate information about illegal recruitment, job scams, and other employment-related concerns and matters

Uphold Philippine Migration and Overseas Employment Laws

• Hear and decide on complaints and cases, except money claims, against various entities for alleged violation of POEA rules and regulations
• Institute disciplinary actions against employers and workers who violate Philippine migration laws and regulations

Aside from these functions, POEA provides four key services for aspiring OFWs, which will be discussed in the next section.

Key Services of POEA for Aspiring OFWs

Verify Status of Recruitment Agencies

Every OFW have various reasons why they want to work abroad. The end goal is to provide a better future for the family. Sadly, illegal recruitment is still on the loose and many Filipinos are still falling for these empty promises.

This is why the POEA aims to minimize illegal recruitment practices, starting with the checking of a particular agency’s status through its website. Make sure to check the status of the recruitment agency you are eyeing for before you submit an application.

Pre-Employment Orientation Seminar

This is different from OWWA’s PDOS where all departing OFWs are required to attend.

Also known as PEOS, this seminar is part of the government’s drive against illegal recruitment, which aims to educate all Filipinos who plan to work abroad. It is a free online learning tool composed of eight modules such as pros and cons of working overseas, legal procedures and required documents in applying for a job abroad, and tips on how to avoid illegal recruitment.

Take note that PEOS is a mandatory requirements, which means you have to go through this. Don’t worry. It’s online and free.

Frontline Services

This is the part where you need to go through several processes in order to be legally documented. The frontline services are for registration and documentation among others.

If you want to file an illegal recruitment case against an agency, the frontline services can also assist you through the Docket and Enforcement Division.

Overseas Employment Certificate Processing

One of the important documents you need to secure as OFW is the Overseas Employment Certificate or OEC. It serves as proof that you are a documented OFW – and POEA is the agency responsible for processing that.

READ: Overseas Employment Certificate

For further information, you can check POEA through its website. 

You finally took a leap of faith and opened your own business. Congratulations! We know how challenging it could be, especially if you are still working overseas, but in Balikbayad, we believe that you can do it. That is why we are here because we want to offer a loan facility specifically for OFWs like you to help you grow your business.

We know how much negativity surrounding loans, but believe it or not, borrowing money can be helpful for your business – as long as you use it the right way.

Here’s how you can use loan to boost your small business:

Additional Working Capital

You will never run out of ideas on how to promote and grow your business, but at the end of the day, what you need is money to make those dreams realize. There is also a constant need to replenish your inventory or introduce new products, but do you have sufficient cash to cover for it? Apparently, you are on tight budget and using your emergency fund to keep your business afloat is something you don’t want to do.

In that case, loans can help. It helps your business stay afloat to make sure you are still up and running.

Additional Supplies in Inventory

In line with working capital, you always need to have products to sell to keep the business going. If you’re always out of stock, how do you expect customers to keep coming back at you?

Apparently, cash can be an issue, which is why applying for a loan can be helpful for your business. Through additional working capital, you can add more supplies or products in your inventory and eventually convert it into sales.

Set Up a Website

The digital world can do so much for business. Decades ago, you have to rely on word of mouth and old-school advertising such as flyers and ads to introduce your business to the world. At present, you can do that with just several clicks. If you want to boost your business, then setting up a website can be your solution. After all, Forbes reported that consumers rely heavily on the Internet to learn more about a particular seller.

Setting up and maintaining a website can be costly. You have to purchase your own domain name and set up a shopping cart to make transactions easier and more convenient. You might even hire a website designer to make the website more appealing to customers. This is why loans can be helpful because the money you could borrow can help you finance these expenses.

Purchase Equipment

This will depend on the kind of business you are running. Let’s say you opened your own mini grocery or restaurant. You will need certain equipment to keep your business running. Apparently, the cost that comes with equipment purchase can be too much for your pocket.

This is where loans come in. It could help you buy the equipment your business needs to make it even more thriving.

Pay for Unexpected Expenses

Life is uncertain. Business is likewise uncertain. There might be unforeseen events such as leak issues, short in cash to pay for the rental, calamity that affected your products, and the list goes on. You might want to use your savings and emergency fund to cover for these unexpected costs, but one of the cardinal rules in business is to NEVER mix personal and business funds.

This is how loans can help. It could be your lifesaver in instances like this while minimizing the risk of going out of business.

Build Your Credit Score

Lenders, especially big banks, look closely into your credit standing. They need to know whether you can pay the loan on a given time. If you want to enjoy perks such as lower interest rate or lesser documents to be submitted, they need to see that you are a good borrower in your Credit Report.

What you can do is to apply for a loan with private lenders like Balikbayad to help you build your credit score. Don’t worry. We make loan processing and repayment convenient for you because at the end of the day, all we want is to help you and build a good financial relationship with you.

Are you ready to apply for a loan? Submit your loan application now and let Balikbayad help you in making your entrepreneurial dreams happen.

This was heard everywhere: President Duterte issued a deployment ban against Kuwait while suspending the processing of Overseas Employment Certificate or OEC for all Kuwait-bound OFWs.

Before the year end, the Department of Labor and Employment ordered a temporary suspension for processing of OEC to give way to investigation related to illegal recruitment activities and practices. Thankfully, this suspension was lifted.

What exactly is OEC? How important is this document in your life as an Overseas Filipino Worker? Read on to find out.

What is an Overseas Employment Certificate? 

Also known as travel exit clearance, OEC serves as a proof that an individual is a documented OFW. This signifies that you are allowed to legally leave the country and work abroad. Take note that this document is only valid for 60 days from the date the OEC was issued.

The OEC is something you present at the airport before you leave. This will exempt you from paying travel tax and terminal fee. It will also serve as your exit pass and clearance at the airport.

In case you plan to apply for a loan or open an account with banks and be tagged as OFW for additional benefits, make sure you present your OEC as well. In fact, this is among the required supporting documents by lenders.

How can I apply for OEC? 

You need to submit the following documents:

• Passport, with at least six months validity from date of departure
• Verified Contract of Employment or Offer of Employment
• Completely filled out Balik Manggagawa Info Sheet. You can access it here.
• Valid work permit, work visa, or any equivalent document

Take note that POEA requires other documents aside from the above-mentioned depending on what kind of worker you are (professional workers, low-skilled workers, workers heading to US or Canada, or household service workers). You can check this post to learn more about the additional requirements list.

Aside from the documents required, you will also be asked to pay fees, which includes:

• POEA processing fee – P100 per OEC
• OWWA membership fee – USD 25 or its Peso equivalent
• Philhealth contribution – P2,400 for one-year coverage
• PAG-IBIG contribution – minimum P100 every month

How to apply for OEC:

Agency-hired workers means you don’t have to worry about this. Still, what if you were hired directly by your employer? This means you have to apply on your own, either through walk-in or Balik Manggagawa (BM) Online System.

If you prefer walk-in, you have to apply directly at POEA Main Office in EDSA cor. Ortigas Avenue. You can also apply through POEA Regional Offices.

Online application would be easier. Simply register and log-in at the BM Online Appointment System to set a schedule and assign a venue for processing. On your scheduled appointment, make sure to bring two copies of accomplished BM Information Sheet, required documents, and money for payment of fees.

Is it possible that you don’t have to apply for OEC? The answer is yes. If you are a returning worker with the same employer or job site, then you don’t have to apply for OEC.

Don’t forget to log in to you BM Online account and click “Acquire OEC or Exemption.” You will see a confirmation message together with BM Exemption Number, which you must present upon departure.

Tips in Applying for OEC:

• Bring both original and photocopies of the documents required. File them separately so you won’t get confused.
• Arrange the documents according to the POEA list. You can check this link as a guide.
• Make sure to pay for the corresponding fees. We know how heavy this could be on your budget, but non-payment would mean you’ll forfeit your opportunity to enjoy services such as medical insurance or housing loan.

How many times have you heard of the terms “budgeting,” “money management,” or “saving?” Even here in Balikbayad, we always stress the importance of these terms because we want to see every OFW succeed even after your contract.

To help you with that dream, we listed money management apps you might find useful to help you achieve financial freedom.

Your Bank’s App

Banks like BDO, BPI, and Metrobank have their own app that allows you to access your account anytime, anywhere. Make sure you download your bank’s app because aside from being free, you can easily check how much you have and if there were withdrawals made.

You can check this POST to learn about banks with online banking facilities.

Ipon: 52 Weeks Challenge

52 weeks challenge is popular every start of the year. It gives you an idea of how much you can have at the end of the year when you set aside a specific amount every week. In case you are having a hard time sticking to your saving commitment, then this app could help.

Available to Android users, this app helps you set your financial goal and make sure you stick to a schedule. It also helps you keep track of how much you have, shows you a progress record, and sends you reminders in case it’s time to set aside the amount you promised to save. Don’t worry. This one is free as well.

You Need a Budget

From the name itself, you can easily tell that this app is designed for people who, well, need a budget. Apparently, budgeting is not that easy. This is why this app promises to make budgeting easier for you by providing features such as Goal Tracking, Debt Paydown, and Bank Syncing among others.

You Need a Budget is also free and available for both Android and iOS users.

Splitwise

Are you sharing a house with fellow Filipinos? This can be a good way to augment rental expenses, but how sure are you that everyone is paying their dues?

The good news is Splitwise can help you with that. Available for both iOS and Android users, this app track a particular expense shared by multiple individuals to ensure that everyone pays equally and on time. You can even keep track of those who owe you money and you can also note how much you owe someone.

Home Budget

Every OFW spouse must have this app. Home Budget is designed to track bills, expenses, account balances, and everything else related to home budgeting. There are also graphs and charts to show you whether or not your spouse is exceeding the monthly budget you set.

Similar to other apps, Home Budget is also free and available to iOS and Android users.

Daily Expenses

Let’s face it: keeping track of your daily expenses is challenging. Nonetheless, you have to do it because you need to see where your money goes and make necessary adjustments in your budget for bigger savings. The good news is this app can help to help you become smarter with your money.

The key here is to update the app as soon as you spend, otherwise, it won’t be much useful to you. Unfortunately, Daily Expenses app is only available to Android users.

What are you waiting for? Start downloading these apps as your first step towards financial freedom.