Most SME loans in the Philippines are term loans
: a large lump sum loaned upfront. The borrower is expected to make monthly repayments plus interest over their loan period, whether they used the money or not. Term loans are best for a large one-time purchase or cash flow gap.
A Revolving Credit Line
gives you a set amount of money that you can dip into whenever the need arises. You only apply for a credit line once; once it is active, you can withdraw a small business loan
anytime without submitting any more loan requirements
. The validity period of a credit line is usually 12 months. With First Circle, you also won't pay anything until you use your funds.