How can I get a business loan in the Philippines
Access to financing remains one of the top challenges that business owners have to overcome to grow and expand their business. Sadly, only 20%-40% of our SMEs today have access to formal financing companies due to a number of reasons. On the bright side, there are several types of business financing available for small and medium enterprises in the Philippines today.
Before clicking that apply button or picking up the phone to inquire about a business loan, here are 5 things that you need to know:
Why are you going to apply for a business loan?
Before applying for a business loan, you should first ask yourself why are you applying for a loan in the first place. If you’re not going to use the business loan for your business, but rather for personal reasons, it’s better to look at the market again to see if there’s a loan suitable for your personal needs.
Remember, having access to several financial institutions is tempting but if you’re not careful, you might end up having more debt than you can manage.
How much will you be needing?
Now that you know the reason why you are applying for a business loan, the next question to ask yourself is “how much business loan can I get?”.
Don’t just get random amounts out of thin air. Look at your business finances and study how much additional working capital will you be needing. At the same time, you should also have a look at your receivables to ensure that you’re able to pay off the loan that you are planning on getting while maintaining day-to-day operational costs.
Who are the financing companies out there?
Depending on your requirements, there should be one or two financial institutions right for you. Banks, for example, offer loans to business owners nationwide. However, not all business owners have the qualifications and requirements to avail of these offers.
In addition, there are also government agencies that provide extra capital through programs that help meet the financial needs of select business owners.
Another option available for you is a non-bank financial institution. Take Esquire Financing Inc. as an example. We at Esquire Financing offer business loans to business owners wherever they are in the country - collateral-free!.
Who qualifies for a business loan?
Now that you have all the basics, it’s time to see if you’re qualified for a business loan. Each financial institution has its own qualifying process. It may vary depending on the type of institution or the type of loan that they offer.
As intimidating as it may sound, the only way for you to know if you are qualified for a business loan is by reaching out. Most financial institutions today have multiple channels where you can reach them (phone, SMS, email website or social media).
One thing to keep in mind is that you should only provide sensitive information and documentary requirements to the representative authorized by the financial institution that you are applying for a business loan to. You can always ask for identification from the person you’re transacting with or you can call the financial institution’s office to validate the identity of the person you’re talking to.
Applying for a business loan
You are now one step closer to getting your business loan.
After passing the qualification process, it’s time to compile all the documentary requirements so you can submit them the soonest. If you are a legitimate business, this may be the easiest part of the application process as you have all the necessary requirements on hand.
Depending on the financial institution’s turnaround time, you’ll be able to get your business loan in no time.
Do you want to know if you are qualified for an EFI non-collateral business loan? Visit esquirefin.co/loans today or talk to one of our Loan Specialists by dialing (02) 8811 8888.