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
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 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.
Free application and you pay nothing until the credit line is used. Upon use, you are asked to choose from a processing fee of 1.99% per withdrawal or a subscription fee for unlimited withdrawals
BIR, DTI and/or SEC registration Annual revenue of at least ₱5 million Philippine residency with valid ID No minimum business age requirement Other documents to be submitted after receiving initial credit line assessment from First Circle
At least 2 years in present residence and 3 years in business operations DTI/SEC Registration 3 months' bank statements Income Tax Return (ITR) for the last 3 years Annual Financial Statements for the last 3 years
Appraisal fee (per title) - ₱5,500 Handling fee - ₱5,000 Notarization Fee - ₱600 Processing Fee - Based on percentage of approved credit line Collateral Registration fee, document stamp tax, and other post-appraisal fees
At least 21 years old but not exceeding 70 years old at the end of the loan term Sole Proprietorship, Partnership, Corporation At least 2 consecutive years in profitable operation Minimum annual gross sales of ₱1M Business is within a BDO serviceable area
Metrobank SME Credit Line
Loan Processing Fee of ₱3,500
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 SME Business Credit Line
Processing and handling fee of ₱4,750 Notarial fee of ₱500 Appraisal fee of ₱3,500 + ₱500 per additional title Title handling fee of ₱1500 Other miscellaneous fees based on loan amount and actual registration fees
Bank statements or passbook for the past 6 full months Transfer Certificate of Title Trade references / list of at least five major suppliers and clients with contact names and contact details For time deposit collateral: Time Deposit Certificate 2 valid IDs Business registrations with DTI/SEC and BIR
Maybank Revolving Credit Line
Contact Maybank for more details
Company Profile Articles of Incorporation with By-Laws, Latest GIS DTI/SEC Registration, Business Permit 3 years’ Income Tax Return and Audited Financial Statements 3 years’ In-House Financial Statements (if applicable) Latest 6 months bank statement with main depository bank List of Customers and Suppliers with contact details Photocopy of TCT/CCT with Tax Declaration and RETR
Unionbank MSME Dealers Financing Line
Contact Unionbank for more details
Business Papers (DTI/SEC) 2 Year Audited Financial Statements (PHP 3M and above loan) 1-Year Income Tax Return (PHP 3M and above loan) Copy of Valid Government-issued IDs of Major Stockholders/Owners Dealer's Historical Data + Endorsement Letter from Principal
Must be an existing borrower of SB Corp Proof of Sales including bank statements Proof of Value of Asset in case of fixed asset acquisition In house Financial Statement or BIR-filed Financial Statement Proof of ownership and of government valuation of real estate collateral
At least 21 years old but not exceeding 70 years old at the end of the loan term Sole Proprietorship, Partnership, Corporation At least 2 consecutive years in profitable operation Minimum annual gross sales of ₱1M Business is within a BDO serviceable area
Processing fee of ₱3,500; other appraisal fees and handling fees
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. At least 2 years in present residence and 3 years in business operations DTI/SEC Registration 3 months' bank statements Income Tax Return (ITR) for the last 3 years Annual Financial Statements for the last 3 years
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
Maybank Business Loan
Contact Maybank for more details
Company Profile Articles of Incorporation with By-Laws, Latest GIS DTI/SEC Registration, Business Permit 3 years’ Income Tax Return and Audited Financial Statements 3 years’ In-House Financial Statements (if applicable) Latest 6 months bank statement with main depository bank
PSBank Business Loan
Processing and handling fee of ₱4,750 Notarial fee of ₱500 Appraisal fee of ₱3,500 + ₱500 per additional title Title handling fee of ₱1500 Other miscellaneous fees based on loan amount and actual registration fees
Bank statements or passbook for the past 6 full months Transfer Certificate of Title Trade references / list of at least five major suppliers and clients with contact names and contact details For time deposit collateral: Time Deposit Certificate 2 valid IDs Business registrations with DTI/SEC and BIR
Robinsons Bank Small Business Loan
Contact Robinsons Bank for more details
Operating for more than 3 years and latest 3 years should be profitable Business Papers ( DTI/SEC Registration, Mayor’s Permit, Articles of Partnership/Incorporation, By-Laws, General Information Sheet) Last three (3) years of Income Tax Return (ITR) and Audited Financial Statement (AFS) Last six (6) months bank statement or copy of passbook Photocopy of two (2) valid IDs with specimen signature Latest proof of billing (utility bill, credit card bill, etc.) List of at least three (3) major supplier and customer Collateral Documents (Copy of TCT/CCT, Tax declaration and location plan/vicinity map)
Free application and you pay nothing until the credit line is used. Upon use, you are asked to choose from a processing fee of 1.99% per withdrawal or a subscription fee for unlimited withdrawals
BIR, DTI and/or SEC registration Annual revenue of at least ₱5 million Philippine residency with valid ID No minimum business age requirement Other documents to be submitted after receiving initial credit line assessment from First Circle
Government-Issued ID Barangay Certification for loans not more than ₱100,000 Barangay Micro Business Enterprise (BMBE) Certificate* or Mayor’s Permit for loans > ₱100,000 Photos and video of business operations and assets Corporate documents showing your business is operating for at least 1 year, if applicable
Government-Issued ID BMBE Certificate or Mayor’s Permit for loans more than ₱100,000 Pictures and Video of business operations and asset Corporate Documents, if applicable BIR-filed Financial Statement (FS) for prior year reflecting positive net income BIR-filed FS for earlier two years Other proof of sales and/or assets
Investree Business Loan
Platform/processing fee of 3-5%; contact Investree for more details
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), post-dated checks
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 MSME Business Loan
Notary fee of ₱2000; other notary fees and documentary stamp tax
Must be at least 18 years of age and a Filipino citizen. 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
Processing fee of 6% (based on SeekCap listing); contact for more details
Business must be registered with 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
Processing fee of 6% (based on SeekCap listing); contact for more details
Must be a Filipino citizen with steady source of income proving paying capacity. Valid ID, Company ID, proof of billing, proof of income.
Zenith Capital Business Loan
Processing fee of 5% (based on SeekCap listing); contact for more details
Must have an active checking account for at least 1 year Latest original 3 months Bank Statements and Bank Certification Business permits and sole proprietorship/partnership/corporation documents Photocopy of at least 2 Government-Issued IDs Income Tax Return with Audited Financial Statements Pictures of the business and/or inventory
Security Bank Business Loan
Processing fee of ₱3,000; notarial fee of ₱400-800; 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 OR existing credit card.
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?
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 0.99%), a high credit limit of up to ₱20 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!
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: RFC 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 ₱20 million of reusable credit for as low as 0.99%
Free to open and requires no usage commitment
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
