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Nov 03, 2020

5 Types Of Business Financing For Small And Medium Enterprises In The Philippines

Looking for a business loan in the Philippines? Garnering financing for your business can be very challenging, and with so many options available, it can be hard to figure out what will work for you best.


In this article, we narrowed it down to 5 types of business financing available in the Philippines, their pros and cons, and why Esquire Financing Inc. is your best option for you.

1. Bank Term Loans

Bank term loans work best if your business has established a good credit standing. Bank term loans are mostly used to acquire a new property, expand the business or make some renovations. On the flip side, this loan can’t manage your short term capital gaps or requirements.

Pros
- Offer bigger sums of money with longer terms
- Bank term loans have the lowest interest rates

Cons
- Qualifying for a bank term loan is very challenging because of their strict requirements
- The loan application process is tedious and often takes months to complete
- Tend to have longer approval time

2. Business Credit Card

A credit card offers convenience for business use. Credit cards allow you to make purchases on the spot without cash in hand. Also, they can be used to buy items online.

Pros
- 0% interest for the first year
- Credit cards are easy to get because of the minimal paperwork or documentation

Cons
- Once the initial 0% interest rates expire, the average rates rise to 13%


3. SSS Loan

The Social Security System (SSS) offers a large sum of money to individuals looking to set up a private business. The SSS loan’s main purpose is to contribute to the nation’s economic growth and development by providing financial assistance to the business sector. This is meant to increase productivity and enhance potential earnings through expansion and diversification.

Pros
- It offers a very large sum of money and fair interest rates

Cons
- SSS loan is secured by any collateral acceptable to both the Private Finance Initiatives and the SSS, provided it gets fully recovered

4. Invoice Financing

Invoicing financing is a very useful option for SMEs. It requires a business to submit their invoice to a lender so that they may advance cash against future invoice payments. However, it’s not the right choice for businesses that don’t issue invoices to their clients.

Pros
- You can get cash quickly and not damage your ability to borrow in the future
- They’re useful in addressing short-term cash flow requirements because they’re advancing cash from future invoice payments

Cons
- It can only be used by a business that invoices clients

5. Online Term Loans

Online term loans work like bank term loans, except their terms tend to be shorter. It’s much easier to qualify for an online term loan than a bank term loan.

Pros
- It’s easy to qualify
- Less paperwork and documentary requirements involved
- Faster turnaround time


Cons
- Compared to banks term loans, the interest rate is a bit higher


Why Choose Esquire Financing

Esquire Financing Inc. is a trustworthy lender with an impeccable track record of providing fast, hassle-free non-collateral loans to SMEs. Here are some of the benefits you’ll enjoy when you service your loan at EFI:

- Speedy loan processing: Credit decisions are reached within seven business days or less.
- Minimum loan application requirements, eliminating the hassle of filling out numerous forms.
- Non-Collateral loans amounting from PHP 100,000 to PHP 10,000,000.

Apply for a business loan today by visiting www.esquire.com.ph and enjoy our simple 3-step business loans with flexible and comfortable payment terms to fuel your dreams and reach your business goals. It’s time to grow your business.