Safe Types of Loans Philippine SMEs Can Benefit From
by Mashum Mollah Loans & Credit 09 December 2019
Loans are the fastest and simplest way for someone with limited capital or liquidity to quickly get their enterprise up and running. In many cases, it may simply be impossible to start the business you want without taking on some kind of loan.
While most Filipino business owners understand the way a loan can benefit their business, many misunderstand the implications of different kinds of loans. We all know friends and family members who took out a loan from a private individual or a fly-by-night operation, only to run into trouble later on because the terms were not well-defined or because the lender employed unethical methods to collect the loan.
While you can borrow money from anyone, it’s almost always recommended that you turn to a bank or a mainstream financial institution for any significant amount, especially when your nascent business is involved. Banks will offer better transparency compared to other sources of loans in most cases. This means that if anything untoward or unusual happens, the next step is already clear.
If you’re looking for safe loans in the Philippines to help jumpstart a small business or a startup, you can try inquiring at established banks such as Robinsons Bank for a commercial loan. These types of loans were once difficult for small business entrepreneurs to come by. However, thanks to developments in the banking industry over the past few decades, bank loans for small businesses have never been easier to acquire.
Banks also offer kinds of consumer loans that could prove useful for your startup.
These include but are not limited to the following:
Auto and motorcycle loans
If you need a personal van or motorcycle that you could also use for deliveries and other logistics needs, banks such as Robinsons Bank make it easier than ever before to find the right one to suit your budget. Not only do they offer easy payment terms for new vehicle purchases, but they will also usually have foreclosed cars and motorcycles on hand, something which offers incredible value for anyone who needs an affordable vehicle for their business.
If you have precious gemstones, metals, or jewelry on hand, you can use them to immediately secure a loan from a PLP or Preferred Lender Program. This kind of loan can make it easy to get immediate use of non-working assets you may already have at home.
If you’re an employee working for a company accredited by a bank, you may already be qualified to take out a personal loan. This can give you the much-needed flexibility to cover personal emergencies that may use up any cash you were intending to use for starting capital.
Some banks like Robinsons Bank offer a microfinance loan service specially designed for Filipino SME’s. Now, borrowers can enjoy having bank loans with interest rates less than 1/3rd lower than most lending facilities, including a 0.5% rebate for clients with on-time payments. Flexible terms and conditions are also available, making this microfinance loan service the best bet for your startup.
There’s no longer a need to turn to the neighborhood “five-six” to be able to secure immediate funding for your business. Thanks to a change in local banking practices and the arrival of banks friendly to small businesses, there are now many more sources of safe loans Philippines-based small business owners can turn to.