For small and medium enterprises (SMEs), securing funding from banks can be difficult. In fact, according to data from Bangko Sentral ng Pilipinas (BSP), loans to MSMEs even dropped below the 10% mandated threshold for banks in 2022. This is despite the fact that 99.58% of businesses in the Philippines in 2021 were MSMEs.
SMEs have a hard time securing bank loans due to a number of reasons. Banks have a more rigorous application process that requires a lot of documents. Loan amounts higher than ₱2 million may also require collateral if you’re a first-time SME borrower.
The good news is that there are multiple non-banking lending companies in the Philippines that offer affordable SME loans to business owners like you. You may have even encountered a lending company or two while searching for business loans online. Compared to banks and government lenders, which typically process applications in 10 business days or more, independent lending companies can process loans in about 3-5 days. Independent lending companies also have less documentary requirements. More importantly, select lending companies offer non-collateral business loans that are more affordable than banks in terms of interest rates.
To aid you in your search for "lending company near me" or "legit lending company", we compiled a list of financing companies in the Philippines that cater specifically to SMEs. Just remember to do your due diligence and ensure that the independent lending company you choose is registered with the Securities and Exchange Commission. In addition, make sure that you are communicating only with the official channels of the lending companies listed below.
First Circle is one of the few companies in this list that is an official financing partner of DTI. Since 2016, this lending company has been empowering SMEs with convenient, flexible, and affordable financial services, in addition to free growth tools such as PhilGEPS Project Finder.
First Circle’s business loan offer is the Revolving Credit Line, which provides SMEs a credit line of up to ₱20 million for as low as 0.99% interest rate per month. This is the lowest non-collateral interest rate in the market. If you have a competing offer from a bank or other legitimate lending companies, First Circle is also willing to beat their pricing by 10% through their Best Price Guarantee initiative.
Launched in 2019, SeekCap is actually an online lending platform for SME loans. A product of Unionbank of the Philippines, this marketplace lets business owners choose term loans from various SEC-registered lending companies. SeekCap is a convenient option if you’re getting a business loan for the first time and are overwhelmed by the different offers available to SMEs.
The business loans on SeekCap range from ₱5,000 to ₱20 million, with interest rates starting at 2-3% per month. Some choices offer as fast as 1-day approval, while others can take as long as 10 days. SeekCap also provides a loan calculator that you can use to estimate your payments, although this excludes any fees or charges associated with the loan.
One of SeekCap’s disadvantages is that its offers are not the most affordable in the market. Negative SeekCap reviews on their social media comments also complain about long disbursement processes, and the lack of a dedicated customer hotline or loan agent to assist clients.
Many SMEs don’t have large assets that regular banking loans can accept as collateral. This is an issue that Esquire Financing, a company launched in 2011, is looking to solve through no-collateral business loans. Based on SeekCap’s page, Esquire Financing loans start at 3.5% interest rate per month, with a 6% one-time processing fee.
Esquire Financing creates business loan offers based on a number of factors, including a cash flow analysis of your SME. It will take around 7 working days to process your application, and when accepted, Esquire Financing can grant you up to ₱10 million in funds.
Radiowealth Finance (RFC Loan)’s history traces back to 1964, with appliance financing as one of their first services. They officially became a financing company in 1996, offering business loans, personal loans and financing loans. The team’s mission is to cater to the underserved credit market, and SMEs are the perfect fit.
An RFC loan for SMEs can be availed at their website. Based on their SeekCap listing, an RFC loan starts at 4% interest rate per month, and you can loan up to ₱5 million.
CARD SME Bank
Although it began as the Rural Bank of Sto. Tomas (Batangas) in 2007, CARD SME Bank has become popular enough among Philippine business owners that it bears inclusion in our list of financing companies in the Philippines. CARD SME Bank began operating as a thrift bank in 2011, with its branches located mostly in the CALABARZON region. They offer term loans and revolving credit line products for microenterprises, with loanable amounts starting at P100,000. CARD SME Bank’s AgriBusiness Loan specifically caters to producers in the rural sector, which is one of their advantages over the other lending companies in this list.
Welcome Finance Inc.
Welcome Finance Inc. is a subsidiary of South Korea-based Welcome Creditline Corporation. Established in 2014, Welcome Finance Inc. offers up to ₱2 million in non-collateral business loans to SMEs, with interest rates ranging from 1.9% to 3%. Welcome Finance Inc. also offers personal loans, salary loans and auto loans. At the moment, Welcome Finance Inc. has 9 branches online in addition to online services.
Touting itself as a family-oriented business, Zenith Capital lends out the biggest loan amount in our list of financing companies in the Philippines. They’ve been operating since 2017, offering both non-collateral and collateral business loans that go up to ₱100 million. Zenith Capital’s business loan interest rates start at 1.5% per month. Borrowers are encouraged to submit their application online or in-person at Zenith Capital’s offices in BGC, Taguig.
Right Choice Finance
Right Choice Finance was established in 2016, with branches located in Metro Manila, Luzon and Cebu. It is a subsidiary of Singapore’s Right Choice Capital Pte. Ltd. and is also listed on SeekCap, which is part of this list of financing companies. Its products include non-collateral and collateral loans, with loanable amounts reaching ₱3 million. Right Choice Finance’s loan interest rates range from 1.5 to 3.5% per month. Beyond loans, Right Choice Finance also helps businesses streamline their payroll and other HR processes through partner bundles for their other products, like the HRBuddy software.
PG Finance, or Prime Global Finance Corporation, was initially established in 1997 to service the accredited suppliers of Ang Hortaleza Group of Companies. Today, PG Finance supports all kinds of startups and MSMEs through collateral business loans and business insurance. They also offer personal loans and housing loans.
PG Finance’s flagship loan is the Sure Asenso Loan, which can go for less than 1% annual interest rate depending on your provided collateral. As of writing, they only accept real estate as collateral and require at least 3 years of operation. The Sure Asenso Loan comes with free fire insurance, 1st-year mortgage redemption insurance (MRI), https://www.moneymax.ph/personal-finance/articles/mortgage-redemption-insurance, and 1st-year Renewable Electricity Market (REM) registration. Visit their website to apply with no upfront payments required. Upon completion of documents, PG Finance will process your application within 7 working days.
Vidalia Lending Corp.
Vidalia Lending Corp. is a lending company operating since 2008. They offer personal loans, salary loans, and small business loans through their website and mobile app. As of 2024, they have 3 types of non-collateral business loans:
E-Commerce Loan. This loan has the lowest barrier to entry, created for online merchants who utilize services like Facebook, Shopee, Lazada, Carousel, and other similar websites. Applicants must have an official selling page and an online business that is active for at least 1 year. Vidalia’s e-commerce loan provides up to ₱100,000 at a monthly interest rate of 5%, in addition to a processing fee of 5%.
Small Business Loan. Enterprises that have existed for at least 2 years and earning at least ₱20,000 per month are eligible for Vidalia’s small business loan. Borrowers can get ₱20,000 to ₱100,000 at a monthly interest rate of 5%, in addition to a processing fee of 5%.
Business Loan. This loan is suited for enterprises with at least 3 years in existence and a minimum net monthly income of ₱50,000. Borrowers must also have an existing local credit card that is active for 1 year and with a credit limit of at least ₱50,000. Vidalia’s business loan provides up to ₱500,000 at a monthly interest rate of 4%, in addition to a processing fee of 5%.
Vidalia promises a credit decision in 3-5 days and a maximum annual percentage rate of 80.6% on all of their business loans.
This list of financing companies in the Philippines will help you secure more affordable funding that you need to grow your business. By going with an independent lending company, you also won’t need to worry about difficult requirements or long processing times that you normally go through with a traditional banking institution.
Whichever business loan provider you choose, remember to compare your business loan options and assess your loan agreements carefully. For any other questions, feel free to reach out to us on our official Facebook page or by emailing us at email@example.com!