Kash Avena
Looking to fulfilling your dreams and launching your own coffee/laundry/computer shop? Maybe you’re a budding entrepreneur looking for additional working capital, or funds to buy additional equipment. Whatever your business needs may be, getting the right bank loan or other financing options may spell the difference between success and failure.
There has been a strong push to become an entrepreneur and start a business in the Philippines. And why not? 99.6% of businesses in the country are comprised of Micro, Small and Medium Enterprises (MSMEs). They also employ 55% to 65% of the country’s workforce, making them the lifeblood of our economy. Entrepreneurship is seen as a way to create livelihood in a country where only 1 out of 100 school children will end up landing a job.
While hundreds of thousands of of Filipinos are running MSMEs, there is still a struggle to access capital. In fact, a lot of entrepreneurs tap their personal funds especially when starting out. The reasons vary, from lack of collateral required for most lending company and bank loans, to lack of know-how in preparing compliance documents.
If you are keen on opening a new business or expanding your growing enterprise, you must keep in mind that there are multiple sources of credit available to you, such as:
Personal funds or savings – this is an option if you have sizable savings, and willing to risk losing a portion in the event that your business fails
Bank loans – these have the lowest interest rates ranging from . The only caveat is that they require either your deposits or a real estate mortgage as collateral.
Government loans – you can try getting a loan from government agencies such as SSS, which has a loan specifically for startup businesses.
Capital leasing – this is a type of loan you can get if you need to buy a capital asset on installments. The title of the asset remains with the seller until you have fully paid the price.
Supplier credit – this type refers to getting a deferred payment option for goods or services you need to purchase to operate your business.
Equity financing – another way to fund your business is to get investors who will financially back your business, in exchange for ownership of a portion of your company.
Ideally, the best source of funds for your business especially if you are still establishing business connections would be a low interest credit, such as bank loans. If you meet the basic criteria mentioned above, you can consider loan offerings from top banks in the country.
Bank loans for businesses in the Philippines
PNB Kabuhayan Loan
Philippine National Bank offers loans for both startup and operational businesses. The loan amount ranges from P500,000 to P10 million with tenor of 1 to 5 years.
PSBank SME Business Credit Line and Term Loans
Philippine Savings Bank offers this one-year credit line where funds are accessed by writing check to make accessing the funds convenient. Meanwhile, their term loans be as long as 7 years, with rebate options whenever you pay your monthly dues in advance.
BPI Family Savings Bank Ka-Negosyo Loans
With a base amount of P500,000, what makes Bank of the Philippine Islands’ business loan offering unique is that the minimum payment term is 2 years.
Planters Bank Bizloan
Through this initiative by Planters Development Bank, entrepreneurs can get access to small business loans in as fast as 10 days, or medium-sized loans starting at P10 million for as short as 3 weeks.
Ready to Get a Business Bank Loan?
You’ll benefit from canvassing for the best interest rates. Given your busy schedule, why not let a professional handle your loan application? Loansolutions is the Philippines #1 Loans Marketplace. Our 3-Step Online Loan Application is cross-referenced with the criteria of top banks and lenders in the Philippines, to make sure that we find lowest interest business loans that you can qualify for. A dedicated Loansolutions Concierge will contact you to answer all your loan questions, help review and submit the required documents to banks and lenders on your behalf, and be with you throughout the loan process all the way to approval.
