A Comparison of 20+ Business Loans in the Philippines

Business Growth
August 12, 2022

Finding a suitable business loan in the Philippines can be a time-consuming process, with so many financing companies operating in both the public and private sector. 

While interest rates and loan amounts remain the most critical factors, there are other things you should consider in shopping for a small business corporation loan. This ensures you get the best offer for your needs, without putting yourself at risk of defaulting.

Table of contents

I. How to compare the best business loans

II. Which business loan types are covered?

III. Business loan comparison table

  • Credit Lines
  • Secured Term Loans
  • Unsecured Term Loans

IV. Does my business have to be registered to qualify for a business loan?

V. Does my business have to be profitable to qualify for a business loan?

VI. Summary

  • The best non-collateral loan: First Circle
  • The best collateral loan: It depends!
  • The simplest business requirements: SeekCap
  • The fastest application process: First Circle

VII. First Circle’s Revolving Credit Line Offer

How to compare the best business loans

comparing different financing companies takes time

Before proceeding, it’s best to have the following questions answered:

  • How much money do you need?
  • What is the monthly interest rate that you can afford to pay?
  • How much are you willing to pay monthly, and for how long?
  • Is the application process fast and easy?
  • How soon will you need the money?

By loan type

Your purpose for the business loan can quickly determine the best loan type for your needs. For instance, term loans often provide bigger amounts than credit lines, so they are best for long-term goals or large one-time purchases. The downside: most lenders have slow processing times, especially if a collateral assessment is involved.

Credit lines – especially the non-collateral type – are more suited for short-term goals, such as covering cash flow gaps, increasing inventory, or repairing equipment.

Secured loans require a valuable asset or “collateral” that guarantees your capability to repay financing companies. They are riskier as you can lose your collateral if you default. However, they can have lower interest rates and bigger loan amounts than unsecured loans. 

By interest rate

An interest rate is basically the “rental fee” you pay your lender for letting you borrow money over a certain period. For example, if you are paying P10,000 in exchange for borrowing P100,000, then your interest rate is 10%.

A lower interest rate is generally better – as long as you clearly understand the different terms providers use to describe their business loan and interest rates. Check out our full guide to comparing interest rates here.

By loan terms and repayments

In general, a loan with years of repayment has lower monthly payments but higher interest rates. A loan with a short repayment period has a lower interest rate but larger monthly payments.

Most business loans have processing fees, and you may also be asked to pay appraisal and collateral registration fees. 

By company reputation

financing companies in the philippines have varied service quality

Financing companies in the Philippines vary in accessibility, ease of loan application, and speed of loan disbursement. The right one should help you go through the application smoothly; ensure you understand your loan’s terms and conditions; and provide funds just when you need it.

Read Google Reviews to know their service quality: how fast they respond to inquiries, the length of their processing times, or even how they support clients through extraordinary circumstances such as the pandemic.

Which business loan types are covered?

We have categorized our comparison table according to the following types:

  • Term loan. This type of business loan disburses a lump sum of cash upfront. It often requires collateral, and can be repaid for longer terms than a credit line.
  • Credit line. A form of business loan that provides access to a set amount or ‘credit limit’, which you borrow from partially or in full whenever a business need arises. Upon repayment of the borrowed amount, you only pay interest on the portion of the credit limit you used.
  • Secured business loan. A type of term loan that requires collateral, such as real estate, banking statements, or other valuable assets.
  • Unsecured business loan. A type of term loan or credit line that does not require collateral. Because the risk is higher for lenders, they often have smaller loan amounts, higher interest rates, and shorter repayment terms.

Business Loan Comparison Table

Credit Lines

Product name Loan Type Loan Amount Loan Term Interest Rate
First Circle Revolving Credit Line Unsecured credit line Up to ₱10M Up to 1 year renewable As low as 1.39% per month
BPI SME Credit Line Secured credit line Minimum of ₱300,000 1 year renewable Prevailing market interest rates
Metrobank Credit Line Secured credit line ₱1M to ₱20M 1 year renewable Prevailing market interest rates
PSBank SME Business Credit Line Secured credit line Min of ₱2M w/ real estate; min of ₱500,000 w/ bank deposit 1 year renewable Prevailing PSBank interest rates
Maybank Revolving Credit Line Secured credit line ₱500,000 to ₱35M Up to 90 days Prevailing market interest rates

Fees and eligibility rules
Product name Fees Eligibility
First Circle Business Loan Free application. For credit line withdrawals, a processing fee of 1.99% per withdrawal; or subscription fee for unlimited withdrawals Registered with BIR and DTI or SEC. Business address must be in NCR, Central Luzon, CALABARZON, Central Visayas, Northern Mindanao, or Davao Region. Annual revenue of at least ₱5M.
BPI Business Loan Processing Fee of 0.5% of approved amount At least two (2) years in present residence and three (3) years of business operations. Must provide DTI/SEC Registration; General Information Sheet; Articles of Incorporation/Partnership; By-Laws; 3 months' bank statements; Income Tax Return (ITR) for the last 3 years; and Annual Financial Statements for the last 3 years.
Metrobank Business Loan Loan Processing Fee of ₱3,500 Must have Business Registration Certificate or Permit, Income Tax Return (ITR) for the last three (3) years, Audited Financial Statement for the last 3 years, Bank Statements for the last 6 months, Copy of Transfer Certificate of Title.
PSBank Business Loan Processing and Handling Fee of ₱4,750; documentary stamp tax, notarial fee, appraisal fee, title handling fee, and other miscellaneous fees based on loan amount and actual registration fees Must provide a photocopy of bank statements or passbook within the past 6 full months; TCT; tax declaration and vicinity map of the offered collateral; trade references / list of at least five major suppliers and clients with contact names and contact details. For time deposit collateral: Time Deposit Certificate with signed endorsement at the back portion, 2 valid IDs, business registrations.
Maybank Business Loan Documentary stamp tax, processing fees, notarization fees Latest 2 years Audited Financial Statements and Income Tax Returns, last 2 years' Management/In-house Financial Statements, latest 6 months Bank Statements with major depository banks, list of customers and suppliers with contact details.

Secured Term Loans

Product name

Loan Amount

Loan Term

Interest Rate

SSS Business Development Facility

₱500,000 to ₱500M

Up to 15 years

Prevailing SSS interest rates

SB Corp RiseUP Multi-Purpose Loan*

₱300,000 to ₱2M

Up to 3 years

12% per annum

SB Corp Fixed Asset Financing

Contact SB Corp for details

Up to 5 years

Contact SB Corp for more details

BDO SME Term Loan*

₱1M to ₱20M

Up to 10 years

6.25% to 7.25% per month

BPI SME Term Loan*

Min ₱300,000

Up to 5 years

Prevailing market interest rates

Metrobank SME Business Loans

Min ₱500,000

Up to 25 years

Prevailing market interest rates

Maybank Retail SME Loan

₱500,000 to ₱35M

Up to 20 years

Prevailing market interest rates

PSBank SME Loans

Min ₱500,000

Up to 7 years

Prevailing PSBank interest rates

*offers both secured and unsecured options

Fees and eligibility (for the above loans)
Product name Fees Eligibility

SSS Business Loan

Contact SSS for more details Profitable Single proprietorship, Partnership or Corporation that is at least 60% Filipino owned

SB Corp Business Loan (RiseUP)

Contact DTI or SB Corp for more details Operating for at least three years; first-time borrower of SB Corp.

SB Corp Business Loan (Fixed Asset)

Contact SB Corp for more details At least 60% Filipino-owned, 2 years profitable. DTI or SEC-registered. Purpose must be for building/production area improvement or service/delivery vehicle.

BDO Business Loan

Handling fee of ₱5,000; other fees Single proprietorship, Partnership or Corporation. Profitable for at least 2 consecutive years; min annual gross sales of ₱1M; business must be within a BDO-serviceable area

BPI Business Loan

Processing Fee of 0.5% of loan At least 3 years of operations. DTI/SEC Registration; General Information Sheet; Articles of Incorporation/Partnership; By-Laws; 3 months' bank statements; Income Tax Return (ITR) for the last 3 years; Annual Financial Statements for the last 3 years.
Metrobank Business Loan Processing Fee of ₱3,500 Business Registration Certificate or Permit, last 3 years of Income Tax Return and Audited Financial Statement, Bank Statements for the last six months
Maybank Business Loan Document Stamps, Processing Fees, Notarization fees Latest 2 years Audited Financial Statements, Income Tax Returns, and In-house Financial Statements, latest 6 months Bank Statements
PSBank Business Loan Processing fee of ₱4,750, notarial fee and other fees  Bank statements or passbook of past 6 months; TCT; tax declaration and vicinity map of collateral; trade references. For time deposit collateral: Time Deposit Certificate with signed endorsement at the back portion, 2 valid IDs, business registrations.

Unsecured Term Loans

Product name Loan Amount Loan Term Interest Rate
DTI Pondo sa Pagbabago at Pag-Asenso (P3) Program ₱5,000 to ₱200,000 Up to 30 months Up to 2.5% per month
Investree (Purchase Order Financing & Invoice Financing) ₱100,000 to ₱15M Up to 6 months At least 3% per month
SeekCap (Marketplace of different SME loans) ₱50,000 to ₱20M Up to 3 years At least 2% per month
MSME Business Loan ₱50,000 to ₱1M Up to 3 years 3% per month
Esquire Financial Business Loan ₱100,000 to ₱1M 3 months to 1 year 3.5% per month
RSFC Business Loan ₱50,000 to ₱5M 12 months 4% per month
Security Bank SME Business Express Loan ₱1M to ₱5M Up to 3 years 1.5% to 1.95% per month
Landbank Term Loan Facility Contact Landbank for more details Contact Landbank for more details Prevailing market interest rates
DBP Small Business Puhunan Loan Program ₱300,000 to ₱1M for account holders of DBP or other banks Up to 2 years 9% -10% per annum

Fees and eligibility (for the above loans)
Product name Fees Eligibility
DTI Business Loan (P3 Program) Contact DTI or SB Corp for more details Any self-employed or micro entrepreneur engaged in legitimate livelihood or business activity for at least one year, as evidenced by certification from LGU and/or other government offices; Barangay Clearance for at least 3 months; proof of one (1) year residence.
Investree Business Loan Platform/processing fee of 3-5% Latest audited financial statements, last 3 to 5 completed and paid transactions with client indicated in the submitted PO and/or invoice, bank statements of the last 6 months (operational bank account), bank statements of the last 6 months (payment receiving bank account).
SeekCap Business Loan Varies per loan offer At least 1 month of any of the following proof of business existence, issued within 3 months before date of application: purchase order, official receipt, invoices, or billing (utilities or internet); inventory or business photo; board resolution to borrower (if you are a corporation).
Unionbank Business Loan Notary fee of ₱2000; other notary fees and documentary stamp tax At least 1 month of any of the following proof of business existence, issued within 3 months before date of application: purchase order, official receipt, invoices, or billing (utilities or internet); inventory or business photo; board resolution to borrower (if you are a corporation).
Esquire Business Loan One-time processing fee of 6% (based on SeekCap listing) Business must be registered to DTI or SEC. Business operations for at least 1 year. Active checking account at any bank for at least 6 months.
Radiowealth Finance Business Loan One-time processing fee of 6% (based on SeekCap listing) Must be a Filipino citizen with steady source of income proving paying capacity. Valid ID, Company ID, proof of billing, proof of income.
Security Bank Business Loan Processing fee of ₱3,000; notarial fee of ₱400-800 depending on company type; documentary stamp tax Must have complete business registrations in the Philippines. Business must be operating for at least 3 years, and profitable for the latest 1 year. No outstanding debt that exceeds 40% the company’s monthly income. Must have an existing account with Security Bank (at least 6 months old).
Landbank Business Loan Contact Landbank Customer Care Hotlines: (+632) 405-7000 or PLDT Domestic Toll Free Single Proprietorship, Partnership or Corporation in Agri-business, Manufacturing, Trading, or Services. Photocopy of Internal Tax Revenue and Audited Financial Statement for the last 3 years, latest Interim Financial Statement, projected income statement, balance sheet and cash flow statement.
Development Bank of the Philippines Loan Front-end fee: 3% of the approved loan amount Income Tax Returns for the last three (3) years (if applicable), with positive income in the previous year; Latest interim financial statements (if applicable); Simplified Bio-data of key officers (Major Owners and President/Manager); Proof of billing for business and residence; Copy of last six (6) months Current Account statement.

Does my business have to be registered to qualify for a business loan?

Lenders ask for business registrations not just to evaluate your financials, but as a regulatory requirement. Any lender who doesn’t ask for them is not running a legal operation and must be avoided.

The registration documents most commonly requested are from the Bureau of Internal Revenue (BIR); Department of Trade and Industry (DTI) for sole proprietors; or Securities of Exchange and Commission (SEC) for partnerships and corporations.

Does my business have to be profitable to qualify for a business loan?

small business corporation loans mostly take on businesses that are profitable

Most lenders take on businesses which are already profitable or stable for the past few years. This reduces risks of borrowers defaulting on loans. First Circle, however, accepts businesses with recent losses, as we understand that many SMEs are still struggling to recover from the pandemic.

Startups or entrepreneurs that are just starting a business may not qualify for most of these loans. However, some government facilities such as DTI provide grants and loans specifically for startups and OFWs who are planning to start their own businesses at home.

Summary

The best non-collateral loan: First Circle Revolving Credit Line

Not to toot our own horn, but the Revolving Credit Line is the clear leader for SMEs looking for non-collateral financing. It has the lowest pricing (as low as 1.39%), a high credit limit of up to ₱10M million, and zero application fees. Many of our clients use their credit line as an emergency fund to secure their business, since they can choose to borrow from it at any time (or not at all).

The best collateral loan: It depends!

For larger businesses looking for secured financing, there is unfortunately no single answer. Secured loan offers and interest rates depend heavily on the borrower’s business and collateral, as well as the lender and current economy.

BDO business loans are historically the largest and most recognized in our list, but we highly recommend shopping around for the best interest rate you can get. Unlike non-collateral loans, secured loans can't be compared as easily!

Interest rates of secured small business corporation loans change according to many factors

The simplest eligibility requirements: SeekCap

SeekCap, a marketplace of MSME business loans managed by UBX Philippines, has offers that require only 1 month’s worth of any of the following business documents: purchase order, official receipt, invoices, or proof of billing (utilities or internet). Keep in mind, however, that their requirements, interest fees, and processing fees vary per provider – and higher amounts typically come with more business requirements.

The fastest loan application process: First Circle

After completing our short online application form, you’ll hear from us in just 1-2 business days. And once your dedicated account manager makes contact, you’ll be asked to submit just two business documents to get your conditional credit line offer. This is unlike most providers, which provide the final loan amount and interest rate at the very end of the application process.

We would be amiss if we don’t mention SeekCap’s 1-day approval for selected loan offers. However, just like their interest fees, processing times vary per provider – some borrowers get a 1-day approval period but wait a few weeks for loan disbursement, while some borrowers wait several days after submitting requirements.

Best for Startups: RSFC Business Loan

Instead of business registrations, Radiowealth Finance’s business loan only requires a proof of steady income – making it a good fit for aspiring entrepreneurs.

First Circle’s Revolving Credit Line Offer

First Circle’s Revolving Credit Line is a non-collateral SME loan that funds your plans and cash flow gaps whenever you need it. Our credit line has the following advantages:

  • Get up to ₱10 million of reusable credit for as low as 1.39%
  • Free to open and can be withdrawn from any time – or not at all
  • Processing of applications in 1-2 business days
  • Exclusive account manager
  • Minimal documents and no collateral requirements

First Circle is a multi-awarded lending company supporting SMEs since 2016. To apply for a Revolving Credit Line, visit https://www.firstcircle.ph/business-financing/revolving-credit-line

Ready to get your own revolving credit line?

Apply 100% online, and get a credit line worth up to ₱5M. Use and re-use your credit limit anytime you need a business loan.

Apply for a Credit Line