10+ Best Quick Small Business Loan in Philippines no collateral (2024)

Are you finding out about the best quick small business loan in Philippines without collateral that helps customers to solve many problems? This article is suitable for you.

Let’s retailasiaonline.com provide you with some best business with pros, interest rate and other information for 2024.

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Business loan in Phillipines Reviews

✅10+ Best Quick Small business loan lending in Philippines	⭐ 1. BPI, 2. Pag Ibig, 3. Landbank, 4. Metrobank, 5. Unionbank
✅ Guide to	⭐ Apply to business loan in Phillipines
✅ Loan amount	⭐ 20.00 – 30.000 ₱
✅ Age	⭐ 18 – 60 years old
✅ Term	⭐ 1 – 12 month
✅ Pros	⭐ Loan without collateral
✅ Cons	⭐ Low loan limit
✅ Evaluate the effectiveness	⭐ Good
✅ Bad dept support	⭐ Yes

Business loan definition

Business loan meaning financial arrangement in in which a company borrows funds from a financial institution in order to finance its day-to-day operations, future expansion.  According to terms and conditions agreed upon by both parties, the borrower agrees to pay back the loan amount, typically with interest, over a certain period of time.

Types of business loan Philippines

Here are some different kinds of instant business loan in the Philippines:

• ADS loan: Your company’s inventory or accounts receivable can serve as collateral for an asset-based loan.
• Cost of goods sold (COGS) loan: A sort of asset-based loan where the amount is determined using the cost of goods sold (COGS) technique.
• Revenue-based loan: A type of asset-based loan that uses your company’s revenue as a collateral.
• Term loan: A lump-sum loan that is paid back over a certain amount of time in equal payments.

Example of business loan

Here’s a sample Philippine company loan for you to review. Banks often provide startups with business loans when they need money for things like equipment purchases, expanding their operations, or managing their cash flow.

In his loan application, the company’s owner lays out his plans for the future and provides financial details. The bank releases the funds immediately if the company agrees to repay the loan, typically with interest, over a specific period of time.

The company might use this windfall to cover immediate expenses or invest in expansion strategies. Loan conditions, interest rates, and collateral requirements vary by lender and borrower credit history.

Some advantages of business loan in Philippines

Business in the Philippines can benefit in a number of ways:

• Capital for Growth: Companies can get the funds they need to increase inventory, expand operations, or start new ventures with the help of corporation loans that do not require security.
• Working Capital: These loans can be used to meet short-term cash flow needs, which keeps day-to-day activities running smoothly and helps to pay their bills.
• Interest Rates: Subject to the lender’s and borrower’s creditworthiness, commercial loans in the Philippines can come with manageable interest rates. Because of this, it is an economical means of obtaining funds.
• Flexible Terms for Repayment: Lenders often offer flexible repayment schedules, which let fit the loan terms to their cash flow and income cycles.
• Building Credit History: If a owner pays back a loan on time, it can help their credit history, which can make it easier for them to get loans in the future.
• Support from the Government: In the Philippines, small and medium-sized businesses (SMEs) are helped by a number of government programs and institutions that offer loans with good terms and low interest rates.
• Tax Deductions: Companies may potentially save money by lowering the interest they pay on company loans.
• Competitive Advantage: Having access to more capital can give a company an edge over its competitors by letting it invest in chances that it wouldn’t be able to do without outside funding.

Rate of interest for business loan

Loan rates for businesses in the Philippines range from 1.39% per month to 8% per annually, with the former being offered by the government and the latter by private lenders.

You can get loan sums ranging from ₱300,000 to ₱20 million with the ability to offer collateral despite unsecured loan.

A company’s yearly revenue, credit score, the sort of loan it takes out, and the lender all play a role in determining the maximum loan amount.

Business loan calculator

To calculate the interest on a business loan, you can use the following formula:

Interest = Principal * Rate * Time

Where:

• Interest is the total interest paid
• Principal is the initial loan amount.
• Rate is the annual interest rate (expressed as a decimal).
• Time is the loan term in years.

Another option that could simplify things is to utilize a digital company loan instrument. Many banking and government websites provide calculators like this one for small business loans in the Philippines. To operate one, follow these steps:

• Enter Loan Amount (Principal): Input the amount of money you are borrowing.
• Enter Annual Interest Rate: Input the annual interest rate as a percentage.
• Enter Loan Term: Specify the loan term in years.

These calculators can help you estimate the total cost of the loan and understand how changes in interest rates or loan terms may affect your payments.

Note: Remember that the real interest you pay may change depending on how often the interest is added and if there are any other fees related to the loan.

Term of business loan app in the Philippines

Some common parts of business loan terms are:

• Loan Amount: How much money a company can take to Start up business loan without collateral Philippines.
• Rate of Interest: The yearly interest rate (APR) that is charged on the loan.
• Loan Term: The amount of time that the loan is given for. The length of the loan could be anything from a few months to several years or even a few decades.
• Repayment Schedule: How often and how much you will be paying back, like every month, every three months, etc.
• Collateral: The lender may ask for collateral for some loans but not for others.
• Fees: There may be different fees, such as handling fees, service fees, and others.
• Eligibility Criteria: These are rules about the business’s credit background, finances, and other things.

Requirements for business loan in Philippines

Here are some requirements for business loan in Philippines for OFW:

• Business Registration Documents: Certificate of Registration with the Securities and Exchange Commission (SEC). Official Document for Registering a Company Name from the Department of Trade and Industry (DTI)
• Financial Statements: Audited financial statements for the past two to three years (for established businesses). Income statements, balance sheets, and cash flow statements
• Loan Application Form: Completed loan application form provided by the lender.
• Collateral Documents: Documentation related to any collateral being offered to secure the loan.
• Legal Documents: Contracts, permits, licenses, and other legal documents relevant to the business.
• Proof of Identity: Valid IDs of business owners/principals.

How to apply for a business loan in Philippines

Here is a general guide with six steps to apply for business loan in Philippines through the process:

• Step #1. Prepare Your Documents. Get all the papers you need, like the Mayor’s Permit, financial records, plan, and papers that prove you are a legal owner (SEC/DTI).
• Step #2. Research Lenders. Explore different financial institutions, banks, and online lenders in the Philippines. Compare their business loan offerings, interest rates, terms, and eligibility criteria. Choose a lender that aligns with your needs.
• Step #3. Check Eligibility. To ensure your company is eligible for the loan, you should research the lender’s standards. The reliability of the company, its length of operation, and its financial stability are a few of these factors.
• Step #4. Send in your loan application. Fill out the loan application form that the company gives you. Include all the paperwork the lender asks for, such as your plan, financial records, and any other papers they give you.
• Step #5. Wait for Approval and Terms. The lender will look over your papers and decide if you are eligible after you send in your application. If you are accepted, they will tell you the loan terms, which include the amount of the loan, the interest rate, when you have to pay it back, and any other conditions.
• Step #6. Accept the Offer and Disbursement. If you agree with the terms, accept the loan offer from the lender. You may need to sign a loan agreement. Once everything is in order, the funds will be disbursed to your account.

Top 5 Best business loan in Philippines 2024

Below is the list of best business loan in Philippines:

#1. BPI- Small business loan Philippines

BPI is a small business loan Philippines that helps people with their money in many ways. This type of loan has multiple potential applications, including the launch of a new venture, expansion of an existing one, or the acquisition of necessary equipment.

Address: 14 Floor Avenue, Basilan, Philippines

Pros: 

• The Philippine bank BPI is well-known and has been around for a long time.
• BPI has different types of small  loans to meet different needs.
• The bank’s interest rates on small loans are affordable.
• BPI gives a choice of loan payback terms that can be tailored to their needs.

Cons: 

• BPI may have strict rules about who can get small loans.
• The application and acceptance process could take a while, which would slow down the transfer of funds.
• BPI could ask for a lot of paperwork, which could make the application process harder.

#2. Pag Ibig – quick business loan lending in Philippines

Pag-IBIG is quick business loan lending company in Philippines that is owned and run by the government. Quick corporate loans for microfinance institutions, individuals, and medium-sized companies are among the many loan types offered.

Address: 10 Floor Avenue, Navotas, Philippines

Pros: 

• The application process has been simplified.
• Having the backing of the government gives one a feeling of safety.
• small and medium-sized (SMEs) are able to use those resources.
• The possibility of a variety of adaptable collateral sources.

Cons: 

• When compared to the loan processing times of some private lenders.
• May necessitate the submission of extensive documents.
• When applying for greater loan amounts, you might be required to provide collateral.

3. Landbank – business loan in Philippines for OFW

Landbank is a business loan in Philippines for OFW helps people and companies get loans of different kinds. They give overseas workers (OFWs) a range of financing choices to help them start or grow their loan in the country.

Address: 15 Floor Avenue, Manila, Philippines

Pros: 

• Financial assistance that is easily accessible to Overseas Filipino Workers (OFWs).
• A variety of loan solutions that are specifically designed to meet the requirements of OFWs.
• Assistance from a respected bank that is owned by the government.
• The provision of assistance in meeting the criteria for documentation.

Cons:

• It is possible that a co-borrower or co-maker will be required.
• Lending company in Manila may be a lot of paperwork involved.
• Certain areas have restricted access for overseas Filipino workers.

#4. Metrobank – Best business loan lenders

Metrobank is the best business loan lenders in the Philippines. It provides many financial services and goods, such as loans. It has the best interest rates, the most open repayment terms, and the easiest application processes.

Address: 23 Floor Avenue, Antipolo, Philippines.

Pros: 

• Metrobank, one of the Philippines’ largest and most established banks, is stable and reliable.
• Provides savings accounts, loans, credit cards, and investments.
• Strong internet banking platforms let clients manage accounts, move payments, and make transactions online.
• Metrobank has responsiveness and friendliness.

Cons: 

• Transactions and services may take longer for some consumers.
• Metrobank has a large Philippine network but a smaller international reach than comparable big banks.
• Interest rates on savings accounts may be lower than at specialist financial organizations.

#5. Union bank – fast business loan

Union Bank offers fast business loans. You can get a loan quickly and easily through Union Bank’s online loan application process.

People who have a Union Bank loan can use online banking services like checking daily interest rates, making payments online, and using mobile banking.

Address:  17 Floor Avenue, San Pedro, Davao City, Philippines.

Pros: 

• Union Bank’s online banking interface is user-friendly.
• The bank offers savings accounts, loans, and investments.
• Union Bank has many ATMs, making it more accessible.
• Bank customers can manage accounts, transfer funds, and complete other banking tasks on the move using the mobile app.

Cons: 

• May have fewer branches than larger banks.
• Regional concentration of the bank’s services may hinder accessibility for customers outside specified locations.
• May offer less foreign banking services than larger banks.

Conclusion

BPI is the best business loan in Philippines because of its low interest rates, adjustable repayment plans. And it is an easy application procedure. Supporting financially, BPI has a stellar reputation and years of experience in the industry.

Businesses looking to expand their operations may rely on BPI as a dependable partner because of the bank’s dedication to client satisfaction and extensive lending alternatives.

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