Whilst the personal loan can be used for a diverse range of purposes, including helping to fund business projects, business loans are designed specifically for business ventures. Here in Philippines, if you are a Filipino entrepreneur looking to start your own business, the best way to do so is to obtain a business loan.
A business loan, as the name implies, is money intended for starting new businesses, that you then repay over a set period of time, according to the terms of the agreement with the bank that issued the money, no matter how big or small. If you require a large sum of money and your company is formed and financially viable enough to qualify for a mainstream term loan, business loans are advisable than personal financing.
Obtaining a business loan is more difficult for startups than it is for established businesses, but it is still possible. New business owners can increase their chances of approval by choosing the ideal type of financing, becoming familiar with their credit scores, and trying to identify the most competitive loaning choices available.
When researching Business loans, you may have come across the phrase “unsecured business loan.” This is a funding option that does not require collateral. However, you should be aware that the bank will require some proof that you’re serious about your business loan for its own protection. This is inclined to include a superb credit rating and the best financial history possible. Users might not even also get the lowest rates because the bank is taking a risk by loaning you money without collateral.
Upfinance has been keeping an eye on the Philippines loan market, keeping track of all the changes and new items. In 2021, the service began delivering loan applications to all financial institutions. Our service will send your application to all lenders who offer this type of loan automatically.
Using the form at the top of the page, you can submit a loan application to all lenders. Fill out the fields with your name, phone number, and email address, then click the “Send an Application” button. If your application is approved, lenders will contact you by phone or email. If you want to personally investigate all loan offers, visit the partner by clicking on the card.
Here are the 7 Top Business loans in the Philippines if you want to get your brand-new business off the ground with a running start:
- JuanHand
– To use the platform’s services, you’ll need a mobile phone with Internet access and a GSave account. Online cash loans are available to Filipinos at any time. The entire application process is fully done by machines and available 24 hours a day, seven days a week.
Interest rates: – 1,66% per month
Loan duration of up to six months Collateral: Yes
Minimum loan amount: – 2 000 PHP
Maximum loan amount: – 50 000 PHP
- MoneyCat Philippines
– MoneyCat Financing Incorporated is a genuine company that provides payday loans to qualified individuals 24 hours a day, seven days a week. They have been granted authorization to operate as a financing company by the Securities and Exchange Commission.
interest rates 0% – 11,9% per month
loan term 1 month
Maximum loan amount: 20 000 PHP
- Philippines Savings Bank
– PSBank has come a long way since its humble roots as a local neighborhood bank on September 26, 1960, when it first opened its gates to customers.
interest rates: 8% – 8.5% APR
loan term: up to 12 months
Maximum loan amount: 10 000 000 PHP
- Mindanao Consolidated Cooperative Bank
– Mindanao Consolidated Cooperative Bank MCCB was created by the amalgamation of three Mindanao cooperative rural banks: Bukidnon Cooperative Bank, Cooperative Bank of Misamis Oriental, and Cooperative Bank of Agusan Norte.
interest rates: 12% – 30% APR
loan term: up to 5 years
Maximum loan amount: 100 000 000 PHP
- Metro Bank – Credit Card and Branches
– Metropolitan Bank History Metrobank Bank, which has been in operation for more than 50 years, was formed in 1963 to serve the five founders’ businesses. The only line of business was corporate customer service.
interest rates: 8.8% – 16% APR
loan term: up to 4 years
Maximum loan amount: 20 000 000 PHP
- Security Bank Online in the Philippines
– History of Security Bank Security Bank, formerly known as the Security Bank and Trust Company, was founded in the Philippines in 1951. After WWII, it was the first personal banking institution controlled by Filipinos in the financial services industry.
interest rates: 14.4% – 22.2% APR
loan term: up to 3 years
Maximum loan amount: 5 000 000 PHP
- Online BDO
– The bank’s history began in 1963. BDO was established by five international firms from Germany, the United Kingdom, the Netherlands, Canada, and the United States. Binder Seidman International Group was the name of the bank until 1973.
interest rates: 7.25% – 39.36% APR
loan term: up to 5 years
Maximum loan amount: 20 000 000 PHP
Upfinance’s mission is to provide comprehensive information on financial services and to help Filipinos find the best deal. When using Upfinance, users can quickly become acquainted with all available products, calculate monthly payments using our loan calculator, and send a loan application to all credit organizations at once. We also publish blog and social media posts on a regular basis about the Philippine financial market and prominent accounting services.
The documents you must prepare for the application vary based on whether you want a business loan for just a sole proprietorship, corporation, or partnership. For sole proprietorships, you will have to prepare:
• An application form (some can be done through online)
• 2 copies of the valid ID of the primary applicant
• Mayor’s permit or a valid company permit
• Latest ITR (including the stamp of BIR)
• The latest Audited Financial Statements
• Registration documents (DTI)
• A list of customers and suppliers
Applying for a credit for a corporation or partnership is also relatively simple in terms
of documentation, as it necessitates not only the mentioned documents above,
but also two additional documents:
• Board Resolution or Partnership
• Continuing Suretyship Agreement.
They will locate the most suitable loan, deposit, or investment portfolio for you. Their financial consultants will explain all the complexities of a loan, including how to properly calculate your financial capacity so that the loan does not turn into burden.
For effective loaning experience and overview of the best business loans in the Philippines, we encourage you to consider clicking the link and go to UpFinance https://upfinance.com/loan-type/business-loan/
