Formal and Informal Financing as Source of Funds of Carinderia Owners
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Formal and Informal Financing, Funds of Carinderia OwnersAbstract
This study explores the role of formal and informal financing as a source of funds of carinderia owners in Rizal Province, Philippines. Amidst the COVID 19 pandemic, carinderias remain relevant as evidenced by an increasing number of households are engaged in this business since the quarantine protocols began. Descriptive research method was used which includes surveys and various fact-finding inquiries. The study suggests the following major conclusions: a) carinderia owners prefer borrowing from informal sources for convenience; b) financing plays a big role as a source of funds for a carinderia business; c) the financing that offers lower interest rates and flexible payment terms are preferred financing option; d) carinderia owners are likely to shift to the financing that offers lower interest rates; and (e) the ability of the owners to properly manage expenses and do budgeting is significant for the carinderia sustainability. The study recommends four major action plans to build a sustainable carinderia, namely Capital (Maintain), Profit (Allocate), Cash Flow (Manage) and Financing (Expand).
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This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
