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7 BEST Business Loans In The Philippines 2022

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    Best Business Loans In The Philippines: There are many different types of business loans in the Philippines, but what is the best small business loan in the Philippines for your business? Today we will closely examine the top business loans in the Philippines for small and medium size businesses.

    Best Small Business Loans In The Philippines

    1. Land Bank: Small & Medium Enterprises Business Loans

    High Diversity Of Small Business Loans

    Land Bank is one of the most diverse banks in terms of small business loans in the Philippines. Currently, they have 13 different types of business loans with their own terms and conditions. Therefore, you may be more successful in finding the most appropriate small business loan with Land Bank.

    Land Bank’s small business loan categories are as follows;

    • Emerging Filipina Lending Program
    • Exporters Production Support Facilities
    • Farm Tourism Financing Program
    • Franchising Lending Program
    • Innovation And Technology (I-Tech) Lending Program
    • I-Rescue Bus Lending Program
    • I-Rescue Lending Program
    • Lending Program For Former Rebels
    • Ofw  Reintegration Program (Ofw-Rp)
    • Pfi-Accord
    • Speed Puv Loan Program
    • Term Loan Facility
    • Working Capital And Liquidity Support Facilities

    The loanable amount, terms, and purpose differ from category to category. For example, a popular small business in the Philippines is franchising. Therefore, Land Bank offers customers financial support if they are interested in a franchising business loan in the Philippines. Still, this amount must be over 100K Pesos, with other key requirements.

    This is why it’s often key that before proceeding, whatever type of business loan you are looking for in the Philippines, borrowers fully research the business loan terms and conditions. Talking about proceeding, how do you proceed to the next stage with Land Bank?

    There is a great deal of information on their website, and you can talk with an online assistant. But if you wish to proceed further, contact their program management department (Tel. No. +632 8405-7640; +632 8405-7198) or visit your nearest Land Bank lending center. You can also contact the call center or email them asking about the best business loans in the Philippines.

    2. Union Bank: Small Business loan

    Best For Small Loanable Amounts (P50K – P1M)

    Union Bank offers a flexible SME business loan in the Philippines. Their business loan is split into two categories. The first option is a Classic Business Loan. The second option is a Dealers Franchising Line. Depending on your requirements and situation, you may find one is more suitable for you than the other, so let’s look at these small business loans in the Philippines in more detail.

    Union Bank’s Classic Business Loan: the first option is their classic business loan which focuses on small businesses and start-ups. Union Bank offers loans for as low as 50,000 Pesos up to 1 million Pesos. What’s more beneficial is that no collateral is needed. The flexible loan terms also make a business loan more appealing.

    Union Bank’s Classic Business Loan requirements are as follows (sole proprietorship/partnership)

    • Business Or Inventory Photo
    • Proof Of Business Existence (At Least One (1) Month Of Any Of The Following Documents Issued Within A Maximum Of Three (3) Months Before Date Of Application):
    • Selfie Image
    • Valid Id (Primary)

    Please note: Corporation requirements differ- Board Resolution To Borrower (Please Email Support@Seekcap.Ph For UBP Template)

    Dealer Franchising Line: This loan is more suitable for growing and expanding businesses as customers can loan up to 10 million pesos under this program. Apart from the loanable amount, one of the other differences is that the repayment timeframe is more flexible and thus may be suitable for those looking to repay a business loan over a longer period.

    Union Bank’s Dealer Franchising Line requirements are as follows;

    • 1-Year Income Tax Return (Php 3m And Above Loan)
    • 2 Year Audited Financial Statements (Php 3m And Above Loan)
    • Accomplished Application Form
    • Business Papers (Dti/Sec)
    • Copy Of Valid Government-Issued Ids Of Major Stockholders/Owners
    • Dealer’s Historical Data + Endorsement Letter From Principal

    So if you are interested, how can you apply for a union bank’s business loan in the Philippines? You can email them via customer.service@unionbankph.com. Or call (+632) 8841-8600. When looking for the best business loans in the Philippines, visiting the provider’s website and reviewing their terms and conditions is recommended.

    3. Robinson: Go! Small Biz Loan

    Best For A Large Start-Up And Expanding Businesses

    Robinsons offers one of the best business loans in the Philippines for growing businesses. One of the great things about Robinson is that there is a great deal of public information. So let us see how this small business loan in the Philippines compares to other business loans.

    Robinsons offers a small business loan in the Philippines for as little as 500K Pesos up to a maximum of 20 million Pesos. The term loan is between 1 year to 10 years. Robinsons also offers a one-year credit line. The eligibility is also an important factor, and small businesses need to be operational for more than three years and be profitable within that time.

    Therefore this type of business loan is more suitable for more expensive start-ups and business expansion. If you are looking for a start-up business loan in the Philippines and only need a small amount, such as 100K, Robinson’s would not be your best option in this situation. However, if you require large capital, Robinson’s may be a perfect option.

    As a loan estimation – If you were to borrow 750K pesos over 5 years with a fixed term for 4-5 years, You would be paying back around 15,500 per month in loan repayments.

    Here are the requirements for Robinson’s business loan in the Philippines;

    • Business Papers ( Dti/Sec Registration, Mayor’s Permit, Articles Of Partnership/Incorporation, By-Laws, General Information Sheet)
    • Collateral Documents (Copy Of Tct/Cct, Tax Declaration, And Location Plan/Vicinity Map)
    • Completed Sbl Application Form
    • Last Six (6) Months Bank Statement Or Copy Of Passbook
    • Last Three (3) Years Of Income Tax Return (ITR) And Audited Financial Statement (AFS)
    • Latest Proof Of Billing (Utility Bill, Credit Card Bill, Etc.)
    • List Of At Least Three (3) Major Supplier And Customer
    • Photocopy Of Two (2) Valid Ids With Specimen Signature

    So a question you may be wondering is – how to apply for a small business loan in the Philippines with Robinsons? Fortunately, their process is fairly simple.

    The bank encourages applicants to visit Robinson’s bank branch and bring all the necessary requirements for the type of loan they wish to take out. Once customers are in the branch with their requirements, they can apply. The final stage is waiting for confirmation.

    There are often many questions when looking at SME business loans in the Philippines, so I recommend looking at their terms, conditions, and the FAQ section on their website, which I have attached above for your reference.

    4. Security Bank: SME Business Express Loan

    Best For Short-Term Loans Over 1 Million Pesos

    Security Bank offers business loans in the Philippines, specializing in short-term business loans for entrepreneurs who need a quick injection of cash. So how do Security Banks’ small business loans compare to other business loans in the Philippines?

    First, Security Banks’ loan repayment terms can either be 12, 18, 24, or 36 months. The minimum small business loan from a security bank starts at 1 million Pesos, and the maximum is 5 million Pesos. However, there is key information to consider when choosing the best small business loan in the Philippines.

    For example, if you decide to borrow 5 million Pesos, there is no collateral with security banks SME business express loan. The bank also has fewer requirements compared to other small business loans on our list today, and they claim applications are approved in as little as 5 days.

    For reference, here are the Security Bank’s term rates;

    • 12 Months = 1.50%
    • 18 Months = 1.60%
    • 24 Months = 1.90%
    • 36 Months = 1.95%

    Here are the requirements for sole proprietorship businesses;

    • Copy Of 2 Valid Ids With A Photo From Primary Applicant/Owner / Authorized Signatory
    • Latest (1) Year Audited Financial Statements
    • Latest 3 Months Bank Statement
    • Latest ITR With BIR Stamp
    • List Of Customers/Suppliers And Details About Their Dealings
    • Signed And Completed Application Form
    • Valid Business Or Mayor’s Permit
    • Valid DTI Registration Docs

    And finally, here are the requirements for partnerships and corporation businesses in the Philippines

    • Continuing Suretyship Agreement (For Corporations) Client Will Be Given Templates At The Point Of Application To Prepare For The Loan Decision )
    • Copy Of 2 Valid Ids With A Photo From The Primary Applicant/Owner / Authorized Signatory
    • Latest (1) Year Audited Financial Statements
    • Latest 3 Months Bank Statement
    • Latest ITR With BIR Stamp
    • List Of Customers/Suppliers And Details About Their Dealings (The Following Documents Will Be Required By The Bank before Loan Booking:
    • Partnership / Board Resolution (Authorizing Signatory For Accounts And Loan, Credit Investigation On Both The Business And Owners)
    • Signed And Completed Application Form
    • Valid Business Or Mayor’s Permit
    • Valid DTI/SEC Registration Documents And GIS

    Security bank has made it easy for applicants to apply. You can contact them directly by calling the call center or visiting one of their branches. However, they encourage customers to apply directly using their online application form, which is streamlined and user-friendly for new and existing customers.

    5. CTBC Bank: SME business loan

    Best Business Loan For Maximum Capital (P70M)

    CTBC Bank also offers two different types of loans. The first is short-term loans which range between 30 days to 1 year. The second business loan is slightly longer, and repayments can be made over a 10-year period.

    So how does a business loan with CTBC Bank in the Philippines compare to other business loans?

    The minimum loanable amount is 500K Pesos. However, their maximum loanable amount is a staggering 70 million Pesos. This is one of the highest amounts we have seen during our comprehensive research on the best business loans in the Philippines.

    Please note that the processing time can take up to 21 business days. And collateral is needed, so if you are looking for the best small business loans in the Philippines without collateral, you may be interested in visiting our full guide, where we explored business loans you can apply for without collateral.

    Their short-term loan can be taken out for a period of 30, 60, 90, 120, 180, or 360 days. The long-term business loan with CTBC Bank can range from 1 – 10 years. Their interest rates will depend on the amount and repayment terms.

    So what are the corporations, partnerships, and sole proprietorship requirements with CTBC Bank?

    • Gross Monthly Income Of Php50,000
    • Must Be A Filipino-owned Company
    • Must Have A Landline Number
    • With Business Operating For At Least Three (3) Years

    Personal Requirements are as follows;

    • Audited Financial Statements For The Last Three (3) Years
    • Business Registration Papers Issued By The Department Of Trade And Industry For Sole Proprietors
    • Duly Filled-Out And Signed Application Form
    • Income Tax Return For The Last Three (3) Years
    • Latest Six (6) Months Bank Statement
    • List Of Major Customers And Suppliers With Contact Details
    • Payment Of Appraisal Fee
    • Photocopy Of Lot Plan/Vicinity Plan / Subdivision Plan
    • Photocopy Of Tax Declaration
    • Photocopy Of TCT / CCT
    • Photocopy Of Two (2) Valid Ids Of Each Authorized Signatory
    • SEC Registration Certificate, Articles Of Incorporation, By-Laws, And Latest

    The most straightforward process if you wish to proceed with a small business loan with CTBC Bank is to download their online application form. You can then submit this directly to their branch.

    6. PNB: Business Loan Philippines

    PNB is one of the largest banks in the Philippines, so it’s no surprise they offer one of the best small business loans in the Philippines. However, if you have a medium or growing business, fear not, as their long-term business loan is also suitable for larger businesses, as discussed below.

    PNB offers two types of business loans in the Philippines. The first type of business loan is the long-term loan. This type of loan is more suitable for medium and growing businesses, and loan maturities range between two to seven years. The second type of business loan is the small business loan, and repayments are made within a year.

    Similar to other banks, we found that PNB offers different types of credit lines, such as;

    • Revolving Credit Line (RCL)
    • Omnibus Line
    • Peso/FX Convertible Credit Line
    • Discounting Line
    • Domestic Bills Purchased Line

    It’s important to note that credit lines are slightly different from small business loans; however, it may be a suitable option for some types of businesses, so it’s worth mentioning. Unfortunately, the PNB business loan sheets are not the clearest; many details were limited during our research (phone calls, online investigation, etc.).

    Therefore if you are looking for a business loan from PNB, it is recommended to contact them directly for a full quotation (Tel. No.: (+632) 8573 8888 – Email: customercare@pnb.com.ph). You can also pop into one of your local branches or use their web chat feature.

    7. BDO: SME Loan

    BDO offers all different types of business loans for all occasions. Based on the research, BDO is not the best bank for very small or start-up business loans in the Philippines. However, they offer loans suitable for your needs if you are a medium-sized or growing business.

    The first loan option with BDO is their Term Loan which is suitable for business investments. Applicants can borrow a minimum of 1 million Pesos up to 20 million Pesos over a term length of over 10 years.

    BDO’s second option is through a credit line. The name of this is SME Ready Check. The minimum amount possible to borrow is 3 million Pesos, and the maximum is 20 million Pesos. However, the repayment terms are slightly different. The repayment terms are validated for one year. Nevertheless, there is an option to renew it.

    BDO will need collateral before dispensing a business loan. This comes in the form of real estate such as a condominium, a commercial property, land, etc.

    So what are the business owners’ requirements to proceed?  

    • At Least 21 Years Old But Not Exceeding 70 Years Old At The End Of The Loan Term
    • Business Is In Profitable Operation For At Least 2 Consecutive Years
    • Business Is Within A Bdo Serviceable Area
    • Minimum Annual Gross Sales Of 1 Million
    • Sole Proprietorship, Partnership, Corporation

    BDO is known to be an accessible bank, so there are many ways you can proceed to the next step. They encourage customers to apply via their streamlined and straightforward online process. Alternatively, you can contact their call center, drop them an email, or pop into your local BDO branch.

    8. BPI: SME Term Loan

    BPI is one of the best small business loans in the Philippines if you are looking for small amounts. So how does this business loan compare to other business loans in the Philippines?

    BPI offers a minimal loanable amount of 300K pesos over a period of 5 years. So naturally, the amount you borrow and the repayment terms will impact how much you pay monthly for your business loan.

    Another important area to consider is the collateral. BPI business loan capital can be a real estate mortgage, deposit, or investment. Collateral is standard when borrowing money for a business start-up or business expansion, and it’s good to know that BPI has several options.

    So what are the requirements for sole proprietors and individuals?

    • Borrower’s ID
    • DTI Registration/Business Permit
    • Duly Accomplished Application Form
    • Last 3 Months Bank Statement (BPI And/Or Other Banks)
    • Latest Income Tax Return For The Last 3 Years
    • Spouse’s ID (If Applicable)

    And what about requirements for partnerships and corporations?

    • Annual Financial Statements For The Last 3 Years  
    • Articles Of Incorporation/Partnership Including Amendments (If Any)
    • By-Laws Including Amendments (If Any)
    • Duly Accomplished Application Form
    • General Information Sheet
    • Ids Of Majority Shareholders/Authorized Signatories (Photocopy)
    • Income Tax Return (ITR) For The Last 3 Years 
    • Last 3 Months Bank Statements (BPI And/Or Other Banks)
    • SEC Registration

    BPI encourages customers to apply for business loans by visiting the nearby BPI branch, calling (02) 7918-2000, or emailing bbclientservices@bpi.com.ph.

    Other Small Business Loan Options In The Philippines

    In a previous article, we addressed the best small business loans in the Philippines without collateral. In that article, we addressed other types of business loans available to small and medium-sized businesses outside of mainstream banks.

    The two other options are government-funded projects and private loan providers. Both have their own pros and cons. The social security system in the Philippines has a fantastic article talking about government-funded projects in more detail. However, several types of government-funded projects across the country may be more suitable.

    Private loan companies also offer a different option for small and medium-sized businesses that need to borrow money in the Philippines. However, the terms and conditions can be fairly strict; nevertheless, they have advantages, such as borrowing a much lower amount of 25K, 100K, 250K, and so on.

    What Is The Best Start Up Business Loan In The Philippines

    In terms of loanable amounts, Union Bank offers one of the lowest business bank loans that are perfect for small businesses. Loans start at only 50K Pesos; therefore, Union Bank is the best start-up business loan from a mainstream bank in the Philippines.

    Government-funded projects offer the best alternative option when investigating the payment terms and interest rates. In addition, several government-funded projects offer a very low-interest rate and, in some cases, interest-free loans. Due to these features, these types of business loans are suitable for start-up businesses in the Philippines.

    Types Of Business Loans In The Philippines

    There are many different types of business loans in the Philippines. Each bank or loan provider has its own name for loans. In most cases, these are split into short- and long-term loans. However, some banks and loan providers split their loan categories into low loan amounts and high loan amounts.

    Loans in the Philippines fall into one of 3 categories.

    1. Bank Business Loans
    2. Government Funded Business Loans
    3. Private Loans

    However, each of these main categories has several mini categories and types of loans. For example, a mainstream bank may offer a start-up loan, a line of credit, an overdraft, etc. This will depend on the provider and the borrower.

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