11 Ways to Fund your Dream Business in the Philippines

Last Updated on – Jul 13, 2022 @ 9:28 am

Saying, it’s difficult to get funding for your business – especially when you don’t have savings – is a huge understatement.

Money after all, doesn’t grow on trees.

But if you believe in your business idea and you’re willing to take risks, here’s a list of alternative ways to get your business funded.

1. Save Up!

You don’t have to start a business immediately. If you’re patient enough you can save up for a small business. With just Php 5,000 you can start selling street food on the side.

If you want to dabble into franchising, the lowest you could start with is Php 20,000 to Php 30,000. It’s still a lot of money but if you’re eager and frugal enough you could save up for this in a year or less.

For more information on franchising in the Philippines, go here (attach link to the previous article on franchising here).

2. Get a Side Hustle

Another way to earn your capital is to get a side hustle. There are plenty of ways to earn extra income through side hustles depending on your skills. Here are a few ideas for your side hustle:

  • Freelance Writer – There are plenty of writing jobs out there that you could do from the comforts of your home. You can be a copywriter/content writer for various websites. If you consider yourself a word smith, then this is the side job for you.
  • Virtual Assistant – You could be a secretary/assistant to any busy client. You can schedule meetings, read/answer emails or even handle their social media accounts. Because a lot of these tasks are admin work that won’t need you to do it for 8 hours a day, this is one of the perfect part time jobs.
  • Online English Teacher – This is also one of the best part time jobs out there. All you need to be is patient and fluent in English. That’s it. You also don’t have to work 8 hours a day because most tutoring sessions won’t take that long. You can get just one client and focus on them, teach them for 2-4 hours a day, and you can earn your extra income.
  • Graphic Designer – Depending on your Photoshop skills, this can be a great side hustle for you. If you enjoy editing or illustrating images, you can totally do graphic design on the side. You can do this for only 2-4 hours a day, depending on how fast you conceptualize ideas for design and work on Photoshop. Also, because you’re most probably the artistic type, this is also a great way to use your creativity to earn money. What’s not to love?
  • Become a Grab partner – a lot of Filipinos has been finding this side hustle very lucrative in the past couple of years. It can also be something you’d want to consider, especially if you have the means to invest in buying a new car.

You can also check out these resources:

3. Liquidate Assets

If you have assets lying around that are depreciating, you might consider selling them. The value of cars usually depreciates. So when it comes to deciding on what to sell, your car can be the best option.

It’s easier to sell than a house because it’s way cheaper. But you could sell it at a price that’s enough to start a franchise or a small restaurant (depending on the car you’re selling). Also, selling a car won’t take as long as selling a house.

Other things you could sell, depending on how much you need for your capital, are jewelries, gadgets, expensive bags, limited edition comic books/ merchandise, basically anything worth selling.

Related: How to Sell a Business in the Philippines

4. Ask a Friend or Family for a Loan

You can always ask your friends or families for a loan. Although it is understandable if this is a sensitive matter to talk about with your loved ones. This is tricky because doing this might end in an altercation with your loved one if things go downhill.

And as we know money-related conflicts between friends or family hasn’t always been easy to deal with. But if you really believe that you can make this business happen and you don’t think even money can come between you and your friend or family, then why not go for it.

A tip would be to have a concrete and detailed business plan for your idea. If it’s just that, an idea, with nothing tangible for people to see, it’s harder for your friends or family to believe that you’re serious about this. But if you have a detailed plan, printed and in a binder, well they might be persuaded to believe that you do mean business!

5. Ask a Friend or Family to be your Business Partner

A better idea if you and your friend/family will be up for it, is to ask them to be your business partner. This will go even smoothly if you actually have some money to invest on a small business but you just need more funding to make it come to life.

The great thing about this is if the business becomes successful, both you and your business partner will be earning serious cash and income. Another benefit of this idea is that, you would have someone who will work with you to make this business happen.

If the other person invested in this business, they have a stake in its success. And so, they can help you build this business from the ground up. It’s easier to run a business if you have someone who can run it with you. Two heads are better than one.

There is of course a downside to this. Asking a friend or a family member to start a business with you can also cause problems in the long run. You must take into consideration the strain it might cause in your relationship, if the business isn’t going so well.

But if you’re willing to take this risk along with the risks of starting a business, well you can also see how beneficial this can be both for you.

6. Get a Bank Loan

If borrowing from people you are close with isn’t really for you, then maybe getting a business loan from a bank would seem to be the way. Here are banks to consider when getting a business loan.

  • BDO Banco de Oro has a Small Business Loan specifically for entrepreneurs, who can borrow at least P1 million for a minimum term of one year. The most the bank can give with this loan facility is P10 million for a maximum of 10 years, or up to 70 percent of the appraised value of their collateral. BDO has more than 740 branches, and some are conveniently located in most SM Malls.
  • BPI Family’s Ka-Negosyo Loans make financing available for ‘treps looking for short-term, long-term, or even franchising loans. The franchising loans are in particular (and so far) unique to BPI; the minimum term for such a loan is two years at a base amount of P500,000 1The oldest bank in the country (and Southeast Asia) has 831 branches across the archipelago.
  • Land Bank has a loan product specifically for overseas Filipino workers (OFWs) in cooperation with the Overseas Workers Welfare Administration (OWWA), where OFWs could borrow from P300,000 up to P2 million. With 329 branches and turning 50 years old in 2013, the bank also has loan programs for cooperatives and agricultural, manufacturing, and even tourism-related businesses.
  • PSBank For small to medium businesses, Philippine Savings Bank has an SME Business Credit Line, a one-year credit line where funds are accessed by writing checks, making them accessible, convenient and flexible. Its SME Term Loans with Prime Rebate allows loan terms of up to 7 years but also lets customers earn rebates or savings when they make advance or excess payments on their term loan’s monthly due. PSBank has over 200 branches.

Recommended Reading: How to Get Personal & Business Loans Online in the Philippines

7. Borrow from the Government

Another alternative to borrowing from the bank is getting the government to lend you money and help you start your business.

The Social Security Service (SSS) offers business loans through their Business Development Loan Facility which is a lending facility designed to contribute to the nation’s economic growth and development by providing financial assistance to the business sector for the purpose of increasing productivity and enhancing potential earnings through expansion, diversification and other business development projects.

Eligible borrowers are: Single proprietorship, Partnership or Corporation, as least 60% Filipino owned, including cooperatives and non-governmental organizations.

For a list of businesses allowed/registered in the Philippines and other requirements on applying visit the SSS’s site.

Government Service Insurance System (GSIS) also offers the Enhanced Conso-Loan Plus.

Under the Enhanced Conso – Loan Plus, Program, members who have at least 15 years of service with paid premiums may borrow a 12-month salary loan while those with not less than 25 years of service will be eligible for a 14-month loan.

Previously, the credit limit for these members was only 10 times their salary. GSIS also extended the maximum payment term from 6 to 10 years for members with not less than 10 years of paid premiums.

Another option is to try seeking out funding help through local business centers2, such as the Department of Trade and Industry’s (DTI) GoNegosyo Act3.

8. Borrow Money through P2P Lending

If you would like to borrow money but prefer lower interest rates compared to those of the banks’ you could consider borrowing money through peer-to-peer (P2P) lending.

Peer-to-peer lending is the borrowing and lending of money through a platform without going through traditional means like the bank or other financial institution.

What happens is, usually, an online company will bring together borrowers who need financing and lenders who would like to invest their money and earn through interest rates.

People are attracted to P2P because it cuts out the middleman which is the bank, and provides better deals both for the borrower and the lender. Because rates are a lot flexible compared to banks, borrowers can get relatively cheaper interest rates while the lender can still profit from a decent amount of interest rate.

There are several online P2P lending platforms operating in the Philippines that provide an accessible, transparent, efficient, and safe financial exchange space for lenders and borrowers. And these platforms are secured by state-of-the-art technology that ensures the safety and privacy of its clients, and adheres to Philippine laws and regulations.

9. Crowdfunding

If you believe that your business idea is just pure genius and people really need for this to happen, you can try crowdfunding.

Crowdfunding sites like Kickstarter or Indiegogo can be a fun and effective way to raise money for a relatively low cost, creative project. You’ll set a goal for how much money you’d like to raise over a period of time, say, $1,000 (P50,000) over 40 days.

Your friends, family, and strangers then use the site to pledge money. Kickstarter has funded roughly 1,000 projects, from rock albums to documentary films since its launch last year.

Usually, project-creators offer incentives for pledging, such as if you give $20 (P1,000) for an indie video game, they’ll give you a full version copy of the game, with added merchandise such as posters and/or keychains.

Related: How to Invest in Venture Capital & Private Equity Funds in the Philippines

10. Angel Investors & VCs

Two of the best financing options that can help you start your business are angel investors and venture capitalists.

These individuals take calculated risks when it comes to investing in startups, hoping to earn a big return on investment. 

A lot of people think angel investors and venture capitalists are similar, but they don’t work the same way. 

Angel investors are accredited investors who use their money to invest in a small business. These professionals have a high net worth.

Platforms such as Angel Investment Network enables entrepreneurs like you to connect with an investor.  

On the other hand, venture capitalists are pickier than angel investors but they are extremely helpful if you need a big amount.

Before seeking the help of a venture capitalist, prepare an in-depth proposal and make sure you are ready for a thorough evaluation. Venture capitalists take big risks so make sure your business plan stands out. 

However, these people also expect a return that is three to 10 times higher than their original investment within a specified amount of time, and they may also require a controlling interest in your company.

Venture capitalists also tend to focus on one industry such as technology.

11. Bootstrapping

If you’re determined enough this can be the way to go. Bootstrapping is basically the time-honored tradition of doing any and everything you can think of to find money to use in your business.

You can mix and match the different ways listed above just to get your vision realized. This is probably something you’ll consider if your business idea needs a huge amount of money.

This is probably not for the faint of heart. But then again if you want glory, you’d need guts.

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Reader Interactions


    • Venida deligero says

      Have a good day mam/sir
      I am venida deligero 54 yrs age
      I want to make business as loading stasion ..but i have no capital, i need to your support snd please belp me..thank you!
      God bless!
      Venida deligero

  1. says

    Today business owners have many more options when it comes to finding funding than they did years ago. But you’ll find that eligibility for those loans can differ wildly among lenders. And peer-to-peer lending removes the middleman from the process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios. It is also known as social lending or crowdlending. Business owner using this option for the funding.

  2. Joseph De Los Santos says

    i need to expand my business and to comply to FDA to export my product i need atlist 1.5M loan for business expansion and FDA compliance for my facility anyone here can help me to get a business loan. that i can pay min of 3yrs.? i dnt have a property to collateral thats why its difficult for me to get bank approval. u can email me at organikjam@yahoo.com

  3. angelito comagon says

    Hi. To whom it may concern: We looking for a lending company who can grant business loan up to 2Million to a company/borrower as additional capital. Kindly email application form and list of requirements to acomagon@gmail.com so we can apply formally. Angelito Comagon-Authorized Representative Mobile No. 0906-482-1922

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