Entering in a business venture is a rewarding experience. It speaks of someone’s commitment to self-fulfillment and financial stability while at the same time being of service to the community through offering jobs. Nevertheless, whether being a neophyte in the business sphere or having an existing business but needs expansion, one definitely needs a capital, and most of the time, personal finances would not be enough; even if they are, one would not jump into risking.
That’s where business loan in the Philippines come in. Especially for small to medium enterprises, or SMEs, having difficulties in applying for a business loan is already a thing of the past. Business loan in Manila or for any other towns and cities is now easier to get, provided you have all the requirements at your disposal.
What do you need?
Most financing companies would require staple requirements, such as those that would prove the identity of the borrower, including valid IDs, birth certificate, proof of billing to identify home address and the like. As for the varying requirements, it would depend. A corporation seeking for a business loan maybe required to present business and operating permits from government agencies, SEC registration, articles of incorporation and financial statements at the very least. A sole proprietor of a business, on the other hand, may have the same requirements except for those required by the SEC for corporations; in such a case, a DTI permit will be in lieu. For both cases though, banking statements may also be required.
While financial institutions will always accommodate applications sans surety, someone who intends to get an SME business loan in the Philippines could always look at the side of placing a property as collateral as doing so would give someone higher chances of approval. Usually, real estate property documents such as land titles are preferred as collaterals. However, one must be cautious in doing so. You may want to check our article on collaterals so as to know the basics should you intend to take this path with your business loan.
While getting a business loan is a risk that most are apprehensive to take, it would not make any harm provided that one has the capacity to pay or at least have considered all financial factors and potential return of investment, and that the loan is made with a reputable and trust-worthy financial institution.