Maricor Bunal
There’s a plethora of business loan options on the market today, making it quite tricky to determine the best one for you. For instance, short and long-term loans are available from the country’s leading banks such as BDO, Chinabank and RCBC to name a few. DPB and PNB also offer project-specific financing options, especially to agri-business operators. So to help you get over the confusion, we’ve come with a list of considerations to look into to filter down your choices efficiently and choose a deal that will perfectly suits needs:
Type of Loan
If you want money for your company’s daily operations, you should go for a Working Capital Loan. Long or Short Term Loans are also good. But if you’re engaged in exporting products, an Export Bills Purchased, Export Advances, Peso/FX Convertible Credit Line and Discounting Line are the best picks. These types are available at BDO, Chinabank, PNB and RCBC.
Compatibility with your Projects
Let your prospect providers know that you’re pooling funds for an upcoming product launch. They may have specialized loans for product or business line launching. For instance, PNB offers Sugar Loans Programs for makers and sellers of sugar products. Landbank also provides funding for fisher folk with the ISDA Program and farmers with its KAWAYAN Program.
Favorable Rates
Negotiate with the provider on the interest rate. Banks may also either impose or deduct a percentage of the total loaned money depending on agreements regarding the business’s revenue.
Tenure and payment options
Are you up to getting a revolving credit that’s renewable every year? Or do you like to go for a short to long-term loan that’s payable within 1 to 7 years? Whichever tenor you prefer, don’t hesitate to ask the bank regarding their offers. Quick tip: It’s best to partner with banks offering multiple payment options to ensure convenient and consistent remittances.
Flexibility
Make sure to get a credit line that allows you to renew as necessary. Flexibility may come in the form of loanable amount or tenor, wherein you can borrow a higher amount and pay at a longer period as your capacity to pay will allow.
Now that you know the important aspects of a business loan, make sure to take these into consideration when you’re looking for a lender. These will certainly help you choose the right loan for specific business needs and ensure you’ll have sufficient funding for whatever venture you’re planning to undertake.
For an easier application process, you can get a loan through our 3-Step Online Application Process here at Loansolutions PH. Our loan consultants will facilitate your application, giving you access to our huge lender database.
