Types and Features of Business Loans in the Philippines

Business Loans and Financing for Philippines Entrepreneurs

Struggling to have a significant cash flow in business is one of the biggest setbacks for Philippine entrepreneurs.

Lack of cash flow can affect the overall operations of your business which results to

  •         Delay in payments to employees, suppliers, and vendors
  •         Increased bank charges and higher bank interest rates
  •         Business interruption to make decisions on long-term strategic plan and expansion
  •         Bankruptcy and eventually shutdown

Loans might help you get the needed capital to improve your cash flow. These are business loans, working capital credit lines, personal loans, or other financing services your business needs.

UpFinance is now in the Philippines! UpFinance is an online finance resource recognized by different banking and financing networks worldwide.  Get loans from our credit and loans partners ranging from banks to commercial and financial institutions.

How Can You Differentiate Business Loans to Consumer Loans?

There’s a thin line between the difference between business expenses and personal expenses. That’s why we have to distinguish what is needed to easily differentiate between business and consumer loans. The big difference between business loans against personal loans is who is the borrower for the loans.

Businesses need capital or cash to pay the bills and buy assets for operations.  Consumer finance is where borrowers avail loans to cover personal needs.

Both loans mostly need collateral to back up an unsecured loan. For both types of loans, real estate, or investments are required to secure the loan.  Business loans also need additional collateral such as equipment, furniture, fixtures, or inventory.

A consumer loan usually doesn’t need a guarantor to get one. On the other side, a business loan hashas a guarantor, usually an owner-borrower, to sign a guarantee that a company will repay the loan.

Types of Business Loans Explained

In this section, we’ll discuss the types of business loans that you can avail of to expand your business to a greater height. These types of business financing are:

  1. Short-Term Loans. If you want cash fast, a short-term loan might be for you. Online loans can be accessed as short as within the day.
  2. Start-up Loans. This financing option is designed for businesses with less or no established credit or history in the business. It is sometimes easier to qualify for whenever you’re finding credit for your private ventures to begin your business.
  3. Business Lines of Credit. A kind of loan that allows you to borrow money on an as-per-requirement basis and pay interest on only what you borrow.
  4. Microloans. A financing type that offers small amounts of financing and short repayment terms. Interest rates are usually low or very little. Requirements are also less lenient compared to other loans.
  5. Invoice Factoring. If your business were using invoices to get paid, you may be qualified for invoice factoring. The business can sell its outstanding invoices to a third party like an online credit companies.
  6. Invoice Financing. Just like invoice factoring, it uses current invoices to get loans. The only difference is you don’t have to sell your invoices to a third party. However, you can offer invoices as collateral to secure cash advances to financing companies, usually pegged at 80 percent of the outstanding invoices.
  7. Working Capital Loans. This loan covers the cost of the day-to-day operations of your business. It works better with seasonal businesses and cash required to augment short-term capital until revenue is realized.
  8. Merchant Cash Advances (MCA). These cash advances are another kind of financing that gives loans on the promise of future revenues.
  9. Equipment Financing. A better loan solution for businesses that need to buy equipment or machinery.
  10. Commercial Real Estate Loans. Like equipment loans, business owners can avail these business loans to purchase commercial real estate. The property you’re buying will use as collateral to secure credit.

There are other types of business loans that are not mentioned in the list. If you hadcash problems, UpFinance can be the right answer to your business needs. Instant cash can avail online within hours with minimum or no-government credentials needed.

Small Business Loans

Entrepreneurs need quick cash to cover incurring expenses in daily business operations. Small business loans allow private and corporate borrowers to obtain credit and pay it off in installments with interest.

Small business loans also help finance your project, buy equipment or machinery, or working capital when you don’t have enough cash flow. This opportunity should be considered if you need to invest in a profitable project, or simply want to reduce financial problems.

If you have a bad credit score and need cash easier with less interest, online small business loans might be a smart choice.Even small business loans for women entrepreneurs are available to help family businesses thrive.

Is Interest Rate for Business Loans Costly?

No, it depends on the kind of financing you’ll get. The interest rate on loans is different based on the type of loan you have.

Most creditors look at borrowers’ ability to pay back their loans. Loan companies use credit scores to gauge how you can pay them.

A good credit standing can have more favorable interest rate offers from lending companies. Thus, lowering the interest you pay on whether it is a business loan or a personal loan.

Search for business loans that offers lower interest rates possible from a trusted online credit company.

Online Financing Solution at the Click of Your Fingers!

UpFinance is a financing selection services firm that helps companies make financing options quicker from start-up companies to large and multinational corporations (MNCs).

Find the financing options that suit you through our accessible and easy-to-use loan matching choices. Just tell us what you want to borrow and how long for, and our smart search will make it possible!

We also provide loan assistance to restaurants, manufacturing, service-oriented, and other B2B or B2C businesses. Any type of company can apply for a loan accessible to grow your company faster and easier.

UPFinance transforms you into a more informed entrepreneur in finding the most accessible and affordable credit financing choices that match your budget through our unique loan matching services.

Finding best financing options is quicker and faster than going directly to numerous banks and credit institutions.Our team of experienced bankers provide expert financing advice to compare the most accessible and lowest interest rate credit selections available.

UpFinance credit team is composed of finance, management, and legal executives from large corporations and SMEs who have strongly built large partners and networks in broader lists of expertise. Our professionals are ready to offer services to companies needing loans assistance and to help expand your business on a local or global scale.

We are your partners to reinforce business growth!

Author Sofia García from Upfinance

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Shashank Jain

Shashank Jain, founder of good-name, a young and energetic entrepreneur has always been fond of technology. His liking for technology made him go for engineering in computers. During his studies, he learned & worked on different computer languages & OS including HBCD, Linux, etc. He also has a keen interest in ethical hacking.

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