Do you require capital to finance or expand your company? Applying for a commercial loan inside the Philippines is among the pragmatic solutions for businessmen such as you. A loan program is a pattern of private loans used to fund a company. It enables you to receive funds that you must repay (interest payments) over a certain period.
Typical business credit sources within the Philippines include financial firms. They provide billions of pesos in loans to budding and established Filipino enterprises. Here are all the procedures to follow if you want to request a lender to provide you with a company loan.
Determine why you require a loan in the first place.
What do you intend to use the funds for? Register for a commercial loan again for correct objectives, like the acquisition of machinery or property investment, the growth of cash flow, the funding of franchising, or your firm’s growth.
On the other hand, obtaining a company loan is a terrible choice if it’s being used to buy unneeded company assets or support recurring deficits.
Phase 2: Determine how far more capital your company needs.
It would help if you had a fair idea of the cost you require by your firm depending on your purposes before applying for a bank loan. If you request more, the lender may question your ability to run a firm.
If you request even less, you’ll quickly face issues like a shortage of operating cash or the inability to acquire a vital piece of machinery for your business.
As a result, you must conduct a cost investigation, assess your current financial resources, and carefully design your price based on these considerations. In this manner, you’ll be capable of coming up with a sufficient credit quantity for the reason you’ve selected.
Step 3: Determine whether you qualify for a commercial loan.
The following individuals are qualified to submit an application loan in the Philippines.
- Those who are sole owners.
- Filipino nationals between the ages of 20 and 64 when the loan matures.
- Founders of businesses that have been successful for at least two years.
- Workers or experts have worked for at least two years and have a consistent salary.
- An excellent credit score.
- A company that has been successful for at least two years and listed with the DTI or the SEC.
- Based on the bank, there is a certain yearly gross revenue requirement.
- A strong credit score.
Phase 4: Determine the appropriate loan to suit your company’s requirements.
Medium and small companies and licensing firms can use several short-range and long financing offered by various lenders within the Philippines. You can’t then choose a company loan at a whim or accept one supplied by a major bank. Understand your options—do some research to see which lenders can meet your commercial loan requirements. Examine the loan’s qualities as well.
You can use a banking comparison homepage to evaluate company loans. It helps you minimize effort when choosing the ideal credit for your local company.\
Phase 5: Send the following paperwork.
Collect most of the paperwork necessary for your preferred bank and send both original and photocopied copies. Banks typically request the essential papers from company loan applications.
Papers of a basic kind.
- The loan initial application has been signed and submitted.
- Tax records from the most recent year.
- The most recent financial records.
- Valid identification.
Documents about the company.
For first-time business owners, workers, and professionals
- Occupational certificate.
- A commercial loan applicant’s portfolio.
- Pay stubs from the most recent period.
For the benefit of company owners.
- Background information on the company.
- DTI/SEC certified copy or business registration
- Income reports that have been audited recently.
- Documents of Adoption or Articles of Collaboration
- Resolution of the Board of Directors.
- List of key suppliers, together with information on transactions.
In summary, qualifying for a company loan inside the Philippines entails determining the loan’s purpose and quantity. One should review the bank’s qualifying criteria, select the ideal loan that fits your company’s needs, and provide the appropriate papers.
After completing the final stage, the bank would need Three to Seven working days to complete your company loan request.