22 Best Business Loans in the Philippines

Last Updated – Oct 16, 2023 @ 8:49 am

Quick Take

What’s the best business loan to get in the Philippines?

The Security Bank SME Business Express Loan and BDO SME Loan are two of the top business loan choices in the Philippines being offered by banks. If you want to apply for a non-bank loan, Tonik Big Loan and SeedIn are worth considering.

What is a Business Loan?

As you might have surmised, a business loan is acquiring funding from the government, bank, or private lender to start or expand a business endeavor.

The loan is payable with different financing options depending on where you get it. 

Types of Business Loans

There are four basic types of business loans, each suiting different business requirements. Before you begin looking for the right loan provider with the most ideal terms, it helps to understand the types of business loans available.

This gives you better insight into what your options are and what best fits your needs.

Term Loans

This type of loan allows entrepreneurs to get additional funding while essentially keeping their own financial resources intact. These loans can support either short or long-term business needs and are ideal for SMEs.

Term loans are designed to make loan payments more manageable by spreading them out across regular installment, which include both the principal and interest. 

Generally, term loan amounts range from P100,000 to P20 million, which are received in lump sum via the borrower’s deposit account.

Short-term loans are payable within a year, while long-term loans are payable from five to 15 years.  

What can I use Term Loans for?

  • Equipment for increasing production or expanding a business
  • Construction, renovation, or purchase of properties like office space, store, or warehouse
  • Adding fixed working capital to a business
  • Financing a franchise business

Credit Line

This is a short-term loan that provides borrowers with quick access to money on demand.

In this arrangement, interests only start accumulating when you make purchases against the credit line, paying it only on the amount used. 

Also ideal for SMEs, credit lines can range from P500,000 to P20 million.

Here, lenders fund the borrower’s business checking account, with the loan amount being accessed by either issuing or encashing checks.

Other lenders provide additional means to access funds such as through ATM withdrawals, POS transactions, and fund transfers. 

This type of loan’s flexibility is what makes it most ideal for SMEs. Essentially, while interest is paid in monthly installments, borrowers can also repay the principal anytime or as often as they can within the loan term. 

What can I use Credit Lines for?

  • Purchase of supplies and inventory (often done to meet seasonal demands)
  • Increasing working capital for daily business operations
  • Accounts receivable financing

Related: Best Online Credit Line & Installment Loans in the Philippines

Secured Business Loans

This type of loan requires collateral such as real estate properties and bank deposits, which the lender will claim in case a borrower defaults on a loan.

Because the collateral reduces the risk for lenders, secured loans usually have lower interest rates, higher loan amounts, and longer loan terms than unsecured loans.

This makes it ideal for startups that need initial funding during periods when they’re just starting to make profits. 

Apart from interests, lenders charge fees such as appraisal and collateral registration fees.It’s important to note that term loans and credit lines are usually secured business loans. 

Unsecured Business Loans

While this type of loan doesn’t require collaterals, it is more difficult to qualify for. As well, due to the lack of security for lenders, this type of loan comes with higher interest rates, lower loan amounts, and shorter loan terms.  

You can mainly secure this type of loan from private lenders as there are only a few major banks that offer unsecured business loans. 

Invoice Financing

Invoice financing, also known as invoice factoring or accounts receivable financing, is a financial service that allows businesses to obtain immediate cash based on the value of their outstanding invoices.

Instead of waiting for customers to pay their invoices, businesses can sell these invoices to a third party (a factor or financier) at a discount in exchange for immediate liquidity.

Here’s how it typically works:

  • Invoice Issuance: A business provides goods or services to a customer and issues an invoice with terms (e.g., net 30 days).
  • Selling the Invoice: Instead of waiting for the payment term to elapse, the business sells the invoice to a financier or factoring company.
  • Immediate Payment: The financier pays the business a certain percentage of the invoice’s value immediately. This percentage is often between 70% to 90% of the invoice value.
  • Customer Payment: The customer then pays the invoice amount directly to the financier according to the terms of the invoice.
  • Remaining Balance: Once the financier receives the full payment from the customer, they will remit the remaining balance (minus their fees) to the business. For instance, if the financier initially advanced 80% of the invoice value, they would now pay the remaining 20% minus their fees.
  • Fees: The financier charges fees for this service, which can be based on the number of days the invoice remains unpaid, the perceived risk associated with the invoice, or other factors.

Also Check: Online Loans in the Philippines

Why Get a Business Loan?

As you might imagine, there are a myriad of reasons entrepreneurs may want to get a business loan. Below, we list down a few of the more common ones.

To expand your business

This has been alluded to earlier, but it’s worth mentioning the different ways this can manifest.

Perhaps you’ve hired too many employees to fit in your current office space; maybe your restaurant requires more seats; demand could have gone up over the years, and you need to both purchase equipment and increase your workforce to keep up. 

The need to expand is always a good business problem. And loans are an easy way to solve it. 

Related: 10 Ways to Fund and Finance your Dream Business

To improve cash flow

Sometimes, unforeseen circumstances creep up on businesses that compromise more urgent aspects of cash flow. It could be that some accounts receivables were delayed, which were meant to pay suppliers.

Maybe an equipment abruptly broke down, necessitating replacement. Whatever the case may be, sometimes a timely injection of cash flow could be the difference between a business floundering and overcoming an obstacle. 

To invest in better marketing strategies

As digital marketing ultimately became marketing, a number of businesses had to invest in modern approaches to market their brands.

It’s not just a way to keep up with the times and the increasing competitive demands, it’s also a way to scale up your business by expanding your reach and increasing potential leads.

Related: 150+ Profitable Business Ideas in the Philippines

How to Qualify for a Business Loan in the Philippines

Whether you want to open a new storefront, increase your inventory, purchase new equipment, or cover staff expenses, you are probably wondering how to apply for a business loan in the Philippines.

A lot of people think applying for a business loan is an intimidating and hard process, but once you know the key steps you need to qualify for one, you can land a loan in no time. 

Thankfully, the qualifications you need to tick off for business loans are easy. Lending institutions have different requirements, but the most common ones are the following:

  • Must be over 21 years old, and under 65 years old, with a good credit standing
  • Business should be registered with DTI or SEC
  • Business must be in operation and profitable for three years
  • Business must meet the minimum annual revenue

All those requirements go hand in hand. For example, before qualifying for a business loan, you must build your ability to repay personal debts including mortgages, credit cards, and car loans.

This is because lenders will check your credit score to see how good you are at paying off debts. 

Aside from that, you should also meet the yearly revenue required for your business. However, many lenders are flexible in this area especially if there are some aspects you over-perform in. 

Remember that all lenders need you to accomplish a wide array of paperwork before your loan gets evaluated, but if you have a good credit score and business history, you can easily find a loan that will perfectly fit your needs. 

22 Best Business Loans for SMEs & Startups in the Philippines

Below are the top lending institutions in the Philippines that provide business loans with low-interest rates.

1. First Circle

The fintech company was founded to empower SMEs in growth markets by financing their business-to-business trade transactions. They specialize in funding payments for different purchase orders and invoices. 

Loan amount:PHP 250,000 to PHP 20,000,000
Loan term:Renewable every 6 months
Interest rate:Starts at 1.39% per month, depending on the selected loan amount, business profile, term length, and payment frequency of buyers.

They also have a best price guarantee for any SME with a better offer from another legitimate lender – First Circle promise to beat the price by 10%.

How to apply:

  • Enter your info
    Visit firstcircle.ph and enter your personal and business information. 
  • Submit requirements
    You’ll be required to submit both personal and business requirements. These include basic personal and business IDs, proof of billing address, DTI or SEC certificates, and BIR certificate of registration, among others. 
  • Submit an invoice or purchase order
    First Circle can finance multiple orders and receivables. When you submit a clear photo of these documents, the verification process begins and First Circle creates a loan offer within 48 hours. No minimum transaction amount is required to avail of business financing.

How you’ll get funds:

If you accept their loan offer and you’re in a serviceable area, First Circle will schedule a courier to collect your post-dated cheques.

Serviceable areas include Metro Manila, and some areas of Rizal, Cavite, and Laguna. The PDCs will be used to collect loan payments.

Meanwhile, approved funds will be transferred directly to your bank account. Fund transfers usually occur within 48 hours of collecting your cheques. 

First Circle Terms and Rates:

Loan duration is up to six months, while monthly interest rates start at 1.99%.

Interest rates will depend on the business profiles of both the applicant and the business associated with the purchase order or invoice. There’s also a 1.99% fixed processing fee of the principal loan amount. 

2. Tonik Big Loan

Tonik is a digital bank that aims to revolutionize the way Filipinos handle money. With Tonik, millions of unbanked Filipinos can make an account in a non-intimidating way.

Tonik Big Loan is a flexible loan product geared towards people who need cash fast. With a 7-day loan disbursement guarantee, no credit history needed, and no credit card required, this is one of the most accessible secured business loans in the country.

Collaterals that are currently accepted for this secured loan are:

  • Residential house and lots
  • Vacant lots
  • Townhouses and other residential properties in Metro Manila and outside Metro Manila (limited to Cavite, Laguna, Bulacan, Rizal)
  • Condos in Metro Manila only
Loan amount:P250,000 to P5,000,000
Loan term:Up to 60 months
Interest rate:From 0.92% monthly add on rate
Approval duration:7 days

How to apply:

  1. First, download the Tonik App and complete the onboarding process.
  2. Once your account is verified, select Tonik Big Loan on your app dashboard.
  3. Upload all the required documents on your app.
  4. Wait for someone from the Tonik credit team to call you.
  5. Wait for the approval notification on your Tonik app.
  6. If you have pending requirements, submit them.
  7. Your cash will be disbursed within 7 days.

Additional information:

  • This loan is only for individuals with a condominium unit in Metro Manila that is fully paid. The title of the unit should be under your name.
  • Only Filipinos 23 to 55 years old can apply for this loan.

3. RFC

RFC is another non-bank organization aiming to help SMEs and even business owners by providing alternative sources of funding.

So whether it’s business expansion, paying for tuition, or going on a well-deserved vacation, RFC stands as a viable option to realize those needs. 

Loan amount:PHP 10,000 to PHP 3,000,000
Loan Term:3 months to one year
Interest Rate:Starts at 4% per month

How to apply:

  • Fill out their online form
    You can fill out their online form here.
  • Submit requirements
    Depending on your purpose for the loan (working capital, business expansion, franchise financing, putting up a sole proprietorship or partnership/corporation), there will be different requirements. You can find them all here

Should your application be approved, a representative will call you. You will then be requested to complete the required documentation and will instruct you on how to collect your loan. 

Additional info:

  • Online applications are free, but should you wish to process your application in the branch closest to you, there will be upfront charges like processing/notarial fees. 
  • Payments can be settled through RFC’s payment partners. Post-dated checks are required for loans amounting to P100,000 and above. 
  • For more info, contact easyrfc@rfc.com.ph, (0961) 136-1160 / (0995) 307-9062. 

4. Investree

Investree is a leading fintech company that aims to serve small and medium businesses to help them reach their full potential.

Investree understands that MSMEs are the backbone of the country. Despite this, there’s still a massive P11 trillion credit gap that prevents these businesses from growing. Through providing short-term financing, Investree helps MSMEs fill their financial gaps.

With Investree, you can either apply for Invoice Financing to keep your business growing, or Purchase Order Financing so you can cater to larger-than-usual orders. Upon application, Investree will connect you to interested investors. 

Loan amount: P500,000 to P15 million
Loan term: 14 to 180 days
Interest rate:2% to 4% per month

How to apply: 

  • Register for an account here. https://investree.ph/issuer/sign-up
  • Apply for a loan and submit the requirements. 
  • Expect an offering letter within 3 business days.
  • Receive your money. 

Additional info:

  • 7 days approval time
  • 0% one-time processing fee

5. UnionBank MSME Business Loan

Considered one of the most reliable banks in the country, it’s no surprise that UnionBank is committed to helping MSMEs grow. With its business loan, MSMEs can inject extra working capital into their operations. 

Loan amount:P50,000 to P1 million
Loan term:3, 6, 12, up to 36 months
Interest rate:3% per month

How to apply: 

  • Apply here, or; 
  • Visit the nearest UnionBank branch in your area. 

Additional info:

  • No collateral needed
  • Same day approval

6. SeekCap

Backed by Union Bank, this lender provides business loans for a bevy of purposes – inventory, payroll, operations, capital investment, equipment, and infrastructure.

Loan amount:PHP 5,000 to PHP 20,000,000 
Loan Term:1 year to 3 years
Interest Rate:2% to 3.5% per month
Loan Approval Duration:Can be completed within 24 hours


  • Your business (sole proprietorship/partnership/corporation) must be operational for at least 2 years. 
  • As a representative or owner, you are at least 25 years of age
  • Filipino Citizen and Resident
  • No existing loans with UnionBank of the Philippines

Document requirements:

  • Sole Proprietorship
    • DTI Certificate
    • Mayor’s Permit/Business Permit
    • Proof of Sales – Bank Statement of at least 6 months
    • Proof of Billing – Electricity
  • Corporation
    • SEC Articles of Incorporation / Cooperation, whichever is applicable 
    • SEC Amended Articles of Incorporation / Cooperation, whichever is applicable, including By-Laws 
    • By-Laws with SEC Certificate of Registration 
    • Current General Information Sheet (GIS)
    • Notarized SEC Certificate Using UBP Template
    • Mayor’s Permit/Business Permit
    • Proof of Sales – Bank Statement of at least 6 months
    • Proof of Billing – Electricity 

How to Apply:

You will need to sign up to get started with your application and see potential interest and processing rates. 

Here’s a sampling of their loan offers:

7. BPI Family Ka-Negosyo

This BPI-powered loan caters to entrepreneurs looking to either start or expand their businesses. They offer term and franchising loans, as well as credit lines. 

Loan amount:Minimum of PHP 500,000 for a term loan, minimum of PHP 100,000 for franchising loan
Loan Term:minimum of one year, maximum of 10 years
Interest Rate:Credit line charges 4.50% interest rate for 90 days, interest for term and franchising loans unavailable on the website

How to apply:

You can find the form here where you’ll be asked for the purpose of your loan and borrower information.

You will be asked to submit a number of supporting documents depending on the type of loan you’re applying for. You can find the list of documents here.  

Additional info:

  • For term loans, there is a minimum loan amount of P500,000 (maximum of 70% of appraised value of house and lot or a maximum of 60% of appraised value of vacant lot or residential condo). The term is a minimum of one year and a maximum of 10. 
  • For franchising loans, there is a minimum of P100,000 (or 60% of total investment) depending on franchise packages available for Best List brand partners. For non-Best List brands, the minimum is P500,000. The terms come at a minimum of one year and a maximum of three. Meanwhile, credit lines have a one-year term. 
  • For more info, contact kanegosyo@bpi.com.ph, call 754-NEGO(6346), text 0917-8KANEGO / 0922-869NEGO.

8. Security Bank SME Business Express Loan

Security Bank says this loan is perfect for businesses looking to finance short-term needs.

And with minimal documentary requirements, fast approval, and auto-crediting of funds, they claim their SME Business Express Loan is tailor fit to the growing needs of your business – whatever they may be.

Additionally, there is no collateral required for loans up to P5 million and processing and approval can be as fast as five days. 

Loan amount:PHP 1,000,000 to PHP 5,000,000
Loan Term:12, 18, 24, or 36 months  
Interest Rate:1.50% to 1.95%

How to apply: 

  • You can find their online form here. It starts off with a few basic information that checks your eligibility for a loan, followed by your desired loan amount, purpose and tenor.  
  • You can also download the Business Express Application Form and together with the requirements, submit them to a branch near you. 

Additional info:

  • If you’re approved for a loan, you will receive an SMS and an SPOC will reach out to you to set an appointment. 
  • Upon booking the appointment, loan proceeds will be credited directly to your business bank account. If you do not have a Security Bank account, you will have to open one. 
  • All loan monthly amortizations will be collected either via auto-debit arrangement from the nominated Security Bank account or via PDCs for neww-to-bank clients. 
  • Loan term ranges from 12 to 36 months, with interests starting at 1.50% and up to 1.95% for longer terms.

You can find more information here.

9. DBP Small Business Puhunan Loan Program (SBPLP)

The DBP SBPLP was designed to support the government’s thrust to provide credit for working capital to small enterprises.

This program will open the doors of small borrowers who may later enter into the regular lending program where they can avail of bigger loans. 

Loan amount: PHP 300,000 to PHP 1,000,000
Loan Term: one year to two years
Interest Rate: 9% to 10%

Additional info:

  • You can find their online application form here. Additionally, you can download their brochure.
  • The minimum loan amount is P300,000, while the maximum is P1 million. The maximum percentage loanable is based on audited net income (50% for the initial loan, and 60% for renewal). 
  • Interest rates for a one-year term loan is fixed at 9% per annum, and is 10% for a two-year term loan. 
  • Lump sum is released to the borrower’s deposit account with DBP. 
  • There is a 3% fee based on approved and booked loan amount, while post-dated checks from non-DBP accounts are collected as collateral security.  

You can find more information here.

10. BDO SME Loan

This loan is a one-time fund release designed to help your business finance long-term investments such as purchasing equipment to address production increase or acquire/construct new warehouse or office space. 

Its features include the ability to spread out payments to make monthly amortization more manageable. You can also maximize the value of your collateral up to 70%. 

Loan amount: PHP 1,000,000 to PHP 20,000,000
Loan Term:1 year to 10 years
Interest Rate:6.25% to 7.25%, calculator available on their website

How to apply:

  • Check your qualifications
    Borrowers need to be at least 21 years old and not more than 70 years old at the end of the loan term. Businesses should be in profitable operation for at least two consecutive years and have minimum annual gross sales of P1 million. 
  • Prepare documents

Loan terms and available options:

You can find more information here.

11. Blend PH Business Loan

Peer-to-peer lending service Blend PH offers a business loan for existing business owners who have been operating for at least one year.

This low-interest loan is a great way to solve your need for capital to boost your business. Processing only takes 24-48 hours. 

Loanable amount:P100,000 – P2 million
Interest rates:Risk Type A: 1.5% per month
Risk Type B: 2% per month
Risk Type C: 3% per month
Loan terms:6-36 months
Processing time:24-48 hours

How to apply:

  • Create an account and complete all necessary requirements for your application to be tagged as complete.
  • Wait for the team to process your application by validating and verifying all your submitted information and requirements are complete. Once verified, your loan will be endorsed to partner lenders. 
  • Your loan application will be forwarded to partner lenders for funding. You will be notified when a lender decides to fund your loan, and if your funds are finally ready for disbursement. 


  • 2 Valid Government Issued ID 
  • Proof of Billing
  • Selfie with ID
  • 6 Months Bank Statement (Checking Account)
  • Bank Certificate with Average Daily Balance
  • Business Permit / Mayor’s Permit
  • DTI Permit
  • Financial Statement
  • Latest 1-year Audited Financial Statement (AFS)
  • Latest Bank Statement (2 Months)
  • Latest Income Tax Return (ITR)
  • Post Dated Check with Account Name

Blend PH Franchise Loan

Blend PH is one of the leading peer-to-peer lending platforms in the Philippines. This means the funding for these loans comes from the platform’s users (individual investors) that will pool funds to fulfill the borrowers’ loan requests.

Their franchise loan allows borrowers to pay for franchise license fees, which allows the borrower to provide products and services licensed under the name of the franchisor and its business. 

Loan amount:PHP 50,000 to PHP 2,000,000
Loan Term:two to three years
Interest Rate:2% to 3% per month

How to apply:

  • Create an account
    Sign up here and proceed with the loan application once an account is created.
  • Processing
    Their team will process the application by validating and verifying all submitted information and requirements. The process usually takes 24 to 48 hours.
  • Funding and disbursement
    Once your loan is approved, it will be forwarded to Blend PH’s lenders for funding. You will be notified when a lender decides to fund your loan. 

Additional info:

  • Loanable amounts range from P50,000 to P2 million with interest rates of 2% to 3%. Terms are from 12 to 36 months. 
  • Requirements

12. Esquire Financing

Designed for SMEs, this loan is part of the company’s thrust to advocate the Filipino entrepreneurial spirit.

Loans start at a minimum of P100,000, with a maximum of P10 million (with collateral) – at 3.5% monthly interest rate. 

Whereas, loan terms are from 3 months to 1 year.

Loan amount:PHP 100,000 to PHP 10,000,000
Interest Rate:3.5% monthly interest rate
Loan Term:3 months to 1 year

How to apply:

  • Visit their website and register by clicking “Create An EFI Account.” Fill out the online application form and upload the necessary documents. Those who submit their bank statements for the past three months will be qualified for pre-approval. 
  • Wait 48 hours for an SMS and email notification of approval. 

For more information, click here

13. GrabFinance

GrabFinance started in Kuala Lumpur, Malaysia in 2012 before branching out in the Philippines and other Southeast Asian countries. Since then, it has become the largest mobile technology company in the region that connects consumers to merchants, businesses, and drivers. 

Grab Finance loans are a great option for current entrepreneurs that are looking for ways to increase their capital to manage daily operating costs.

Loan amount:P50,000 to P499,000
Interest Rate:As low as 1.49% per month
Loan Term:12-month period, repayments will be done through post-dated checks or auto-debit from your BDO account

How to Apply: To apply for the loan, fill out their online form here

Additional info:

  • The business entities that are permitted to apply for a loan are corporations, partnerships, and sole proprietorships that are based in Manila and nearby areas only.
  • The business should earn at least Php25,000 in monthly net sales, and has been in operation for more than one year.

14. SeedIn Business Loan

One of the biggest peer-to-business financing platforms in Southeast Asia, SeedIn Business Loan gives a solution to local businesses who want to connect with individuals and other businesses looking for short-term investments. 

This simple demand and supply concept has allowed the company to facilitate more than 10 billion worth of funds since February 2014. The company approves more loans compared to traditional financiers because they do not focus on a brand’s financial history, but their growth prospects.

Loan amount:Up to $300,000 (P15,000,000)
Interest rate:Fixed interest rate 
Loan term:1 month to 1 year
Processing time:Up to 7 days

How to Apply: 

To apply for a loan at SeedIn, register here. Then, wait for their team to contact you and discuss your options for loans. You can receive approval in just one week.

Once you’re ready to get the funds, just sign the documentation and the amount will be transferred immediately. A lot of their customers get funded within just three days of receiving approval. 

Additional info: 

Unlike traditional loan offers, you will have a dedicated client advisor 

15. OWWA Loan

OWWA loan is geared for OFWs in the Philippines who want to become entrepreneurs. 

The loan is a project under OWWA’s reintegration program that aims to give financial assistance to Filipinos overseas who work on the sea or land.

This way, they can have a profitable venture and generate income to support them and their loved ones’ future without leaving the country to work. 

Loan amount:P100,000 to P5,000,000
Loan term: Short term loans up to one year
Term loans based on the cash flow but not exceeding 7 years, inclusive of the two years grace period on principal 
Interest rate:7.5% per annum fixed for the entire loan duration

How to Apply: 

To apply for an OWWA loan, visit the nearest OWWA office near you to undergo the orientation and eligibility screening, as well as the processing and necessary training they require.

Then, secure the required OWWA certification for submission and wait for your project proposal to be evaluated. 

Additional info: 

Only active OWWA members can qualify for the loan OWWA and Landbank require collateral or any of the following:

  • Apply with a co-borrower with a good credit standing
  • OR/CR of a vehicle under your name
  • Lease rental contract where your business is situated
  • Proof of receivables
  • Contract agreements such as Deed of Assignment of goods or Purchase Order

16. Metrobank Business Loans

Metrobank SME Term Loan is a credit facility that aims to jumpstart the operation of those who need capital. Metrobank offers Puhunan loans for construction-related projects, general merchandise trading, facility acquisition, and product development.

They also offer agri-business loans geared for livestock and grains trading, food processing, and other agri-related and manufacturing facilities. Lastly, they have franchise business loans for individuals who need pre-operating capital to acquire a franchise package.

For SME loans, there are three types of business loans which include SME Credit Line, SME short term loan, and SME long term loan. 

Loan amount:Minimum amount of ₱500,000.00

How to Apply:

Visit a Metrobank branch in your area with all the requirements needed. Then, submit it to the bank officer for verification.

Other Features:

  • Short-term credit Line
  • Working capital financing for your business’ payables, inventory, and receivables.

17. PSBank SME Term Loan

This offer by PSBank will enable you to expand your business however you like. With the PSBank SME Term Loan with Prime Rebate, you can enjoy competitive rates and repayment options to boost your capital. 

Loan amount:Minimum of P2,000,000 for real estate properties, and P500,000, if against deposits
Loan termMinimum of 1 year and a maximum of 7 years
The repayment shall begin 1 month after each drawdown or at most 1 year from its first release depending on approval. Construction loans can enjoy a maximum grace period of one year on principal payment depending on approval.
Interest rate:Based on the prevailing lending rate of the Bank at the time of the loan

How to Apply: Fill up the appointment form, and visit the nearest PSBank branch near you. Your loan can be approved within 20 banking days or less. 

Additional info: The collateral needed can be any prime commercial, residential, or industrial property without needed building improvements, or cash deposits

18. Robinsons Bank Small Biz Loan

The financial arm of JG Summit Group of Companies, Robinsons Bank is one of the fastest-growing banks in the country.

One of their offers is the Small Biz Loan which can enable businesses to expand their potential.

To apply for the loan, the business has to be operating for more than three years, and the latest 3 years should show its profitability. 

Loan amount:P500,000 to P20,000,000
Loan Term:1 year to 10 years
Interest Rate:Starts at 3.39% per month. Amortization calculator is available on their website

How to Apply:

To apply for the Small Biz Loan, visit the nearest Robinsons Bank branch near you, and bring all your requirements. Then, wait for the confirmation of your loan. 

Additional info: 

  • For the collaterals, you can borrow up to 80% value for residential, 70% for commercial, and 60% for industrial
  • For deposit collaterals, up to 80% for dollar, and 90% for peso

19. SSS Business Development Loan

SSS has a Business Development Loan Facility that is designed to continue the economic growth of the nation by giving financial assistance to the business sector in hopes of increasing their earnings through diversification and expansion. 

Loan amount:depends on the borrower’s debt-equity ratio, maximum of P500 million per borrower
Loan Term:The loan can be paid monthly, quarterly, semi-annually, or annually based on the Participating Financial Institution or PFI’s approved amortization schedule
It shall have a maximum term of 15 years with a 3 year grace period on principal payment
There are also exceptional cases that require a longer tenor provided it will not exceed 25 years
Interest Rate:Variable or fixed based on the prevailing SSS pass-on rate to PFI plus PFI’s spread
The prevailing interest rates shall be reviewed monthly

How to Apply:

Only SSS members and employers can avail of the loan facility. Just visit any SSS accredited PFIs which are in charge of on-lending the fund to eligible borrowers.

For the list of PFIs, email bdld@sss.gov.ph or call the Business and Development Loans Department at 8920-6401.


Formerly known as SULONG Program, the SSS Access of Small Enterprises to Sound Lending Opportunities (ASENSO) gives small and medium enterprises better access to funding thanks to simplified procedures.

Loan amount:Maximum amount of P5,000,000 for short-term and long-term loans 
Loan term:One year for short-term loans, paid monthly
Five years for long-term loans with a 1-year grace period for the monthly principal amortization
Interest rate:For bank funds, the interest rate is fixed or variable, based on the Bank’s applicable benchmark rates plus the applicable spread. It will be reviewed monthly.

How to Apply:

Eligible SSS member-employers can apply for the loan through accredited SSS PFIs (participating financial institutions):

  • Development Bank of the Philippines
  • Land Bank of the Philippines
  • Philippine Veterans Bank
  • Planters Development Bank

21. PG Finance

PG Finance is a pioneering digital lending company that aims to empower small and medium-sized enterprises. Its business loan is perfect for:

  • Business requirements
  • Capital expense
  • Financial Re-discounting (PDC’s/Receivables/Factoring)
  • Purchase Order
  • Financing Business Investment and Expansion
Loan amount: Up to PHP 5 million
Loan term:up to 5 years
Interest rate: 1.67% per month
Loan approval duration: 7 working days


  • Company Profile
  • DTI/SEC Registration
  • Articles of Partnership/Incorporation & By-laws
  • Latest General Information Sheet
  • Government IDs of Principal owner(s)
  • Bank Statement for the last (6) months
  • 3 Years Financial Statement with Income Tax Return
  • Interim Financial Statement, if applicable
  • Signed bank authorization form
  • Real Estate Collateral
  • Bank authorization letter

Additional info:

When you apply for a business loan with collateral, you will get free MRI, fire insurance, and REM registration in your first year.

22. BanKo NegosyoKo Loan (BPI Direct)

For Self-Employed Micro Entrepreneurs (SEME) who run small-scale businesses, the BanKo NegosyoKo Loan is a great financing option. BanKo has simplified the application process for this loan to help entrepreneurs get the support they need.

Loan amount: P25,000 to P500,000
Loan term: 6 to 36 months
Interest rate: 2% to 2.3% per month
Loan approval duration: 3 to 5 banking days


  • Valid ID
  • Utility Bill
  • Barangay or Mayor’s Permit

How to apply:

  1. Log in to the BanKo Mobile App using your Username and Password.
  2. Click on “Loan” in the upper right portion of the screen.
  3. Select “Repayment by Self.”
  4. Complete the details and choose between “Due Amount” or “Other Amount.”
  5. Review the details and click “Submit.”

Things to Consider Before Applying for a Business Loan

1. Your purpose

As with anything in business, you need to be clear about what your goals are.

This would give you a better understanding of what kind of loan you need to look for and what terms and monthly amortization amount you can handle. 

2. Loan amount and repayment

Once you determine your purpose for taking out a loan, perform due diligence to find out just how much you need.

Equally important, you need to consider interests and other fees so you can actually work with the amount you have in mind and not something much less after all the fees have been taken out. 

Then, analyze what kind of repayment method fits your business. Consider your cash flow to check if monthly, quarterly, or bi-annual payments suit you better. 

3. Method of funding

Think about how you prefer to access your funds.

Would a credit line suffice? Do you want to get the loan amount in a lump sum? Or would you rather get access to the amount when you actually need it?

4. Research

As much as possible, take the time to really get into the details of prospective loans.

You and your business will be tied up to the loan for the foreseeable future, so make sure that you truly and fully understand what you’re getting into. 

Loan Repayment Tips

Most businesses enter a loan agreement with the best of intentions. But in reality, there are a number of unforeseen circumstances that could derail your plans.

Here are a few tips to allow you to increase your margin for error. 

1. Create a budget

Depending on your loan provider and the options you choose (PDCs or auto-credit), you need to ensure that you have the funds available when your loan is due.

While this is easier said than done, one way to approach this is to be as realistic as possible with your projections. You can’t base your projections on the numbers that a good month brings. 

You also need to understand that there will be unforeseen business costs, so you need to put that into consideration as well when creating your budget

2. Know your lender’s late payment policy

You need to come to terms that there’s a good possibility that you won’t be able to make your payments.

This is where having a clear understanding of your lender’s late payment policy comes in. This enables you to plan accordingly and make the necessary adjustments to your finances and business operations. 

3. Keep lines of communication open

If something comes up that you know will likely lead you to pay later than scheduled, let your lender know.

You want to build trust and communicating with them regularly keeps them abreast with what the situation actually is.  

When you do this, you’ll find that a number of lenders are more lenient than originally agreed upon, willing to work out alternative payment schedules if you establish a pattern of reliability.

And this can be achieved by communicating proactively. 

Related: Best Home Loans in the Philippines

Business Loans in the Philippines FAQs

What are the usual Business Loan Requirements in the Philippines?

Actual business loans requirements may vary a bit from bank to bank but the usual requirements include: 


  • Completed and Signed Application Form
  • Copy of 2 valid IDs with photo from primary applicant or owner
  • Valid Department of Trade (DTI) Business Registration documents
  • Latest Income Tax Returns with BIR stamp
  • Latest Audited Financial Statements (at least 12 months)
  • Latest bank statements (last 3 months) 
  • List of customers/suppliers and details about their dealings
  • Valid Business or Mayor’s Permit


  • Signed and Completed Application Form
  • Copy of 2 valid IDs with photo from primary applicant or owner
  • Valid Department of Trade (DTI) Business Registration documents
  • Latest Income Tax Returns (ITR) with BIR stamp
  • Latest Audited Financial Statements (at least 12 months)
  • Latest bank statements (last 3 months) 
  • List of customers and suppliers and details about their dealings
  • Valid Business or Mayor’s Permit
  • Partnership or Board Resolution 
  • Continuing Suretyship Agreement (for corporations)

What do lenders consider when looking at potential borrowers?

Each lender has different factors that they look at when considering the viability of a borrower, but the common denominators can be categorized into:

  • Character – Good moral standing, indicator of willingness to pay as promised 
  • Capacity – Ability to pay, adequacy of source of repayment from existing businesses
  • Capital – Borrower’s financial strength, excess of what you own versus what you owe

What collateral is usually accepted?

  • Bank deposits
  • Residential properties
  • Commercial real estate
  • Mixed-use properties 

How does a lender determine the loanable amount a borrower qualifies for?

Again, different lenders have different methods. But almost everyone looks at the realistic projection of the cost requirement of the business. This cost projection is verified and weighed against the appraised value of the collateral offered. 

Alternatively, the loanable amount can also be computed using the gross monthly income of the borrower’s business, with considerations placed on projections and theoretical cash flow after the infusion of the loan. 

How do franchise loans work?

Franchise loans are mainly offered by banks and non-bank financial institutions (NBFI). There are instances when the franchisor offers the funding and terms for the franchisee.

In this instance, both parties are able to directly communicate regarding the arrangement for the franchise. These agreements include how much and how often repayments are. 

There is also an arrangement called peer-to-peer funding, which is what Blend PH offers. Essentially, a company like Blend PH mediates between the franchisee and the lender.

How much can I borrow with a business loan?

Depending on your bank or financial institution of choice, you can borrow up to P5 million. With SeedIn, you can borrow up to P15 million.

What is the usual interest rate on a business loan in the Philippines?

Again, this depends on your institution or bank of choice. Typically, banks have lower interest rates than other loan providers.

How long does it take to get approved for a business loan?

The approval time for a business loan varies depending on the lender and how big the loan is. For traditional bank loans, it may take a few minutes up to 7 days to receive approval.

What are the repayment terms for a business loan?

Generally, loans can be repaid on a monthly basis over a period of several months or years.

What happens if I default on a business loan?

Defaulting on a business loan can have severe consequences on your credit score. If you took a secured loan, then the bank or financial institution will have legal rights over your collateral.

Typically, loan providers are willing to make a reasonable plan with you so that you can pay back the loan.

Can I use a business loan for any purpose in the Philippines?

You can only use a business loan for any purpose related to your business. This can include funding operational expenses, expanding your business, purchasing equipment or inventory, and even hiring new employees.

Always remember to use the loan responsibly and make sure you’re able to pay it back on time to avoid any negative consequences.

How do I determine how much money I need to borrow?

Determining how much money you need to borrow for your business can be a complex process. You will need to consider several factors, including your startup costs, ongoing expenses, and projected revenue.

It’s also vital to create a detailed business plan that outlines your financial projections and goals to help you determine the amount of funding you’ll need.

Additionally, you may want to consult with a financial advisor or accountant to help you make informed decisions about your business finances.

How can I increase my chances of getting approved for a business loan?

The ultimate tip is to make sure you iron out all your requirements before submitting a loan application. It also helps to approach the most suitable lender for you.

For instance, if you have a low credit score, it may be better to approach a loan provider that doesn’t do credit checks.

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Disclaimer: Grit PH strives to post up-to-date information on all investment, banking, and other financial products we feature. However, information may change without notice. Therefore, we do not guarantee the accuracy of the information listed on the website, including those provided by third parties at any particular time. 

It is best to review the updated terms and conditions of your chosen financial institution. Grit PH is not affiliated with the companies mentioned in the article. All testimonials and opinions are representative only of the writer’s experience, but the results will be unique to each individual.

About TJ Ibay

TJ is the lead editor of Grit PH.

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