It’s time to upgrade your business!
Upgrading your business can be very tricky and it needs a lot of preparation and decision-making. In upgrading your business, facilities and office equipment should also be enhanced to align it with your business goals. If you’re considering boosting your business, read this article.
What is Business Loan
A business loan is a borrowed money specifically intended for business-related and purposes. Just like 5/6 or a personal loan, a business loan will be repaid to the lender with added interest.
Eligibility for Business Loan
In applying and getting a business loan, your business should meet the following conditions:
- Your business must be located in Metro Manila or in the Philippines.
- Your business must receive or issue purchase orders (P.O) or invoices.
- Your business is receiving orders from clients, suppliers, partners, etc.
- Your business should be Corporation, Partnership, or Sole Proprietorship.
- Your business should be up and running for more than one (1) year.
Requirements for Business Loan
Lenders have different requirements and qualifications. However, below are the basic needs you need to know in applying for a Business Loan:
- Your Personal Information – Of course these are your complete name, address and contact details
- Business Information
- At least 2 Valid Government IDs – Your IDs can be Unified Multi-Purpose ID (UMID), driver’s license, passport, Identification Number (TIN ID) and many more.
- BIR Certificate of Registration
- DTI (for sole proprietorship) or SEC Certification of Registration (for corporations and partnership)
- Proof of billing for your business
- General information sheet (for corporations)
- Articles of Partnership (for partnerships)
Benefits of Business Loan
This type of loan is for the companies involved in business-to-business transactions. The loans can be used to oversee businesses’ cash flow, get paid for the unpaid invoices, and complete the purchase orders from your buyers. The borrower can use the loans to help its business operate well and grow faster.
Where to Apply for a Business Loan
There are plenty of options in applying for and getting a business loan. Small amounts can be applied to local lenders or family members, while huge amounts should be applied to financial institutions or banks for legit and guaranteed loan approval.
If you are interested in a business loan, below are the banks offering a business loan:
BDO Term Loan
Photo Source: BDO Website
BDO Term Loan is a one-time fund release that helps borrower’s businesses finance long-term investments.
• Purchase new equipment to address production increase
• Acquire or construct new warehouse or office space
PNB Term Loan
Photo source: PNB Website
Just like BDO, PNB has term loans: Long and Short term loans.
Long-Term：Loans are for project financing, expansion of your business facilities, or purchasing of capital goods
Short-Term：Loans are also for project financing but this type of loan is only repayable within one (1) year
Robinsons Bank Business Loan
Photo source: Robinsons Bank Website
Robinsons Bank has two (2) types of business of loan program:
- Go! mSME is Robinsons Bank’s MSME loan program. This is a loan program for micro, small, or medium enterprises in the sectors of agriculture, industry, and services with a minimum loan of PHP 300,000 and a maximum of PHP 2,000,000 for your MSME through this program.
- Go! Small Biz is Robinsons Bank’s small business loan program. It is a great program for would-be entrepreneurs wanting to start a business or existing entrepreneurs who want to expand. The minimum loanable amount for the Go! Small Biz business loan program is PHP 500,000.
Resource: Robinsons Bank Website
Make A Wise Decision
Applying for a business loan will be a hassle for you at first since completing documents and declaring your business information needs a lot of preparation. However, if the lender finds your application worthy of approval, your business will be one step closer to upgrade, success, and smooth operation.