First Circle Philippines | Revolving Credit Line

Frequently Asked Questions

Here are common questions our customers ask. For other questions, check our Help Center.

What is a Credit Line?

A Credit Line (or Line of Credit) is a type of business financing that works like a credit card for your business. It provides you a credit limit to borrow from for any business need.

You can borrow your full credit limit, use only a portion, or not use it at all. This flexible access to funds acts like a free cash insurance for your business so you can address cash flow gaps or augment your working capital as needed. You will be charged only for the credit you use. The interest rate only applies to the credit you used as well.

What does the “revolving” in Revolving Credit Line mean?

It simply means that your full credit limit is replenished as soon as your dues are repaid. The validity period of your credit line is usually 12 months, and you can withdraw as often as you need within that validity period.

For example: if you opened a credit line of ₱5 million and took out a credit line loan of ₱1 million, you can bring your credit limit back to the full ₱5 million by repaying your dues in full.

Why would I need an SME credit line?

A credit line offers flexibility and convenience to growing SMEs. It provides a ready source of working capital to prevent disruptions caused by delayed collections or unforeseen cash flow gaps. It also enables businesses to serve more customers, take on larger orders, and extend credit to clients, turning short-term funding into a competitive advantage.

When should I choose a Credit Line over a term loan?

Term loans provide a lump sum upfront and is ideal for large one-time expenses. However, you are required to make repayments whether or not you use the entire sum. If you need more funds, you'll also have to apply for another loan.

On the other hand, a line of credit for business lets you withdraw funds whenever you need them, but it doesn’t charge you anything unless you use your line. You only need to apply once to withdraw multiple loans without submitting additional business loan requirements.

What are your credit line rates, terms and fees?

Interest rates
Interest rates start as low as 0.99% and can be lowered further if you are eligible to avail of our Best Price Guarantee.

Collateral Requirement
None

Application Fee & Maintenance Fee
None
‍
Convenience Fee
Choose between a per-withdrawal Processing Fee of 1.99%, or a fixed-rate Subscription Fee for unlimited withdrawals. This is charged only when you use your credit line.

Credit line validity
Your credit line will remain valid as long as you keep your business documents up-to-date.

How is the Processing Fee different from the Subscription Fee?

Before using your credit line, you’ll be asked to choose between two types of convenience fee: a Processing Fee or Subscription Fee.

Processing Fee
Best if you don’t plan to withdraw often, or if you are using your line as an emergency fund
- 1.99% of your credit line loan amount
- Only charged whenever you use your credit line

‍Subscription Fee
‍Best if you expect to withdraw credit line loans frequently
- Unlimited withdrawals for the entirety of your credit line validity period
- The fee will vary depending on your chosen frequency of subscription fee repayment: Annual (3.99% of line amount), Bi-Annual (4.8% of line amount), or Quarterly (6% of line amount).

How can I get a Revolving Credit Line?

Start your application by requesting for a free credit line assessment in our Application Page. You'll only have to provide the following information:

1. Business owner's full name and contact details
2. Business loan amount and purpose
3. Registered business name in BIR, DTI, and/or SEC
4. Business industry and estimated monthly revenue

We will request additional documents if your assessment qualifies you for an initial offer. Please be reminded that we do not charge any fees throughout our application process.

What is the Best Price Guarantee?

Our Best Price Guarantee means that SMEs who receive a Revolving Credit Line from First Circle can request a price that is 10% lower than any non-collateral loan offer from another registered finance company in the Philippines.

By "price", we mean the total cost of finance which we calculate as the annual percentage rate (APR) which is legally required to be quoted in the loan contract. When calculating the APR for First Circle and any other providers, we will include all fees regardless of how they are named (i.e. processing fees, interest payments, admin fees, etc).

Who can avail of the Best Price Guarantee?

Our Best Price Guarantee is available to any business that has a valid First Circle Revolving Credit Line and meets the definition of an SME according to the Department of Trade and Industry (DTI). The DTI defines SMEs as companies with "an asset size (less land) of up to PhP100 million; and (2) an employment size with less than 200 employees."

How can I avail of the Best Price Guarantee?

If you do not have a First Circle Revolving Credit Line yet, start your application by visiting the Apply Now section above. This lets us perform a preliminary assessment of your business.

Please note that the Best Price Guarantee is only available to SMEs who are approved for a credit line. Simply share your other loan offer any time before or after you receive your credit line and inform us that you want to avail the guarantee. All information you provide will be protected by our Privacy Policy.

I have questions about the Revolving Credit Line that are specific to my business operations. What’s the best way to have them answered?

You may reach our Customer Support agents in real time from Mondays to Fridays, 9 AM to 6 PM at the following channels:

Landline: (+632) 8580 3200
Facebook Messenger: https://www.messenger.com/t/firstcircleph
Live Chat: Select the 'Chat' or 'Help' button on the bottom right of the First Circle website.

You may still contact us above or email us at support@firstcircle.com on weekends, holidays, or non-operating hours beyond 6PM. We will respond to your query as soon as business hours resume.

Why choose First Circle for SME financing?

First Circle is an SEC-registered fintech company in the Philippines that provides business loans for SMEs. We do this through our Credit Line, which helps businesses fund expansion, cover cash flow gaps, and extend their working capital.

An official financing partner of DTI and the Quezon City Local Government Unit, First Circle is consistently recognized as one of the best providers of loans for SMEs in the Philippines. Learn more about us and our mission to provide fast, fair, and flexible business loans in the Philippines.

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