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Thinking about starting your own business in the Philippines? Sometimes there is an opportunity to take part in a steadily developing franchise, or in your own business, providing for travel to other cities for popularization. The only problem is the lack of sufficient cash reserves. In this case, a loan for business, which can be formalized in a microfinance organization, will help. In the Philippines, there is a large number of specialized companies that are able to issue loans to customers quickly.
Advantages of a loan for business in the Philippines
A loan for business in the Philippines is characterized by the following advantages:
- minimum requirements for borrowers;
- the possibility of obtaining up to 20 million pesos, which is enough to cover a wide range of financial expenses;
- the rapid approval – the duration of the procedure varies from seven to ten banking days;
- the prompt loan restructuring;
- the possibility of repayment holiday obtaining;
- simplicity of the package of documents collection.
Where is it better to get a loan for business in the Philippines?
Landbank OFW
In Landbank, business loans are available in order to finance specific industries, including agriculture, production, tourism, and the manufacturing of own production. Of all the banks in the Philippines, Landbank is the only one that has a loan program for foreign Filipino workers who want to build a business as an alternative to working abroad. Interested clients must first be trained in OWWA and be certified before applying. Registration takes place in any branch of Landbank in the territory of the Philippines.
- loan amount: from 300 thousand up to 2 million pesos;
- loan term: depending on the cash flow within the company, but no more than seven years, including a two-year grace period;
- interest rate: 7.5% per annum;
- property that can be used as a collateral: real estate, vehicles, production equipment, deposits in banks.
Customers also have access to loans for small businesses. The loan amount does not exceed five million pesos, the interest rate is fixed (10.5% per annum). Duration of repayment is from one up to five years. The real estate can be used as a collateral.
PSBank
PSBank offers one of two types of loans for business in the Philippines to customers: credit lines for small and medium businesses, as well as credit lines for borrowers with the status of “Prime Rebate”. Borrowers can use discounts on interest rates within the term of the loan. The conditions are: an initial contribution of at least 20 percent of the full amount, or a monthly payment of more than the established amount.
- loan amount: from 2 million pesos for the collateral registration; from 500 thousand pesos in case of making an initial payment;
- loan terms: for ordinary borrowers – one year, for customers using the program “Prime Rebate” – from one up to seven years. In some cases for business is quickly extended to ten years
- who is given preference: ordinary entrepreneurs working in the sphere of small and medium business;
- property that can be used as a collateral: personal deposit, or real estate for residential/commercial/industrial purposes.
Requirements for borrowers
In order loan for business to be quickly approved, you must meet the following requirements:
- age – from 21 up to 65 years;
- citizens without private business should receive a stable income over the past two years;
- good creditworthiness.
How to make a business loan approved?
In order loan to be approved, the customer have to collect a full package of documents and provide it for the verification. To increase the chances of a loan obtaining, you must first formalize a special permit, confirming the right to conduct the entrepreneurial activity.
