Quick small business loans have become increasingly essential in 2024 as businesses are using them to navigate through the rapidly changing economic landscape of the Philippines. This is mainly because these loans provide quick access to capital, enabling businesses to respond swiftly to opportunities, manage cash flow, and address urgent financial needs.
A couple of standout features of these loans are the speed at which the loans are dispersed and the ease at which borrowers can apply and avail a quick small business loan through them.
These aspects, in particular, make these loans a crucial tool for businesses of all sizes, particularly in an environment where agility and financial flexibility are key to maintaining a competitive edge over their rivals.
It doesn’t really matter whether these loans are being utilized to address urgent repairs, seize time-sensitive opportunities, or manage seasonal fluctuations; quick loans ensure that businesses have adequate liquidity to maintain their operations, meet payrolls, and avoid financial setbacks of any kind.
So, to help Philippine businesses and entrepreneurs to successfully venture forth and survive for the long term, in this article, we’ll explore some of the best quick small business loans providers in the Philippines that will enable businesses to run their daily operations flawlessly, and also help them plan for their future business plans as well.
List of Top 10 Quick Small Business Loans Providers in The Philippines in 2024
For small businesses, making their way through the competitive Philippine financial landscape can be quite challenging, especially when they require quick access to capital. Thankfully, the Philippines offers a growing number of lenders catering to the specific needs of small enterprises.
Here, take a look at all the top quick small business loans providers in the Philippines in 2024 -
1. Credibly
2. OnDeck
3. Headway Capital
4. Bluevine
5. Fora Financial
6. Fundbox
7. Funding Circle
8. National Funding
9. CIT
10. AltLINE
Now that we have a fair idea of who the top 10 quick small business loans providers in the Philippines are in 2024, let us go a bit deeper and provide Philippine businesses and entrepreneurs with detailed information on each of the following loan providers-
1. Credibly
Credibly is a financial services company that specializes in providing funding solutions for small and medium-sized businesses. They offer a range of financing options, including working capital loans, merchant cash advances, and business lines of credit.
Credibly aims to make the process of obtaining business financing more accessible and efficient for Philippine entrepreneurs.
Key Features of Credibly include -
Pros and Cons of Credibly -
2. OnDeck
OnDeck is a prominent online lender that specializes in providing financial solutions to small businesses. They offer products like term loans and lines of credit designed to help businesses access capital quickly.
Known for its relatively fast application process and approval times, OnDeck has become a popular choice for entrepreneurs seeking alternative financing options.
Key features of OnDeck include -
Pros and Cons of OnDeck -
3. Headway Capital
Headway Capital is primarily an online lender that specializes in providing lines of credit to small businesses. They offer flexible repayment terms and a relatively straightforward application process.
Known for its transparent pricing and quick funding, Headway Capital has positioned itself as a convenient option for businesses seeking working capital.
Key features of Headway Capital include -
Pros and Cons of Headway Capital -
4. Bluevine
Bluevine is a fintech company that provides financial services primarily to small businesses. They offer a range of products, including business lines of credit, invoice factoring, and term loans.
Known for its user-friendly platform and relatively quick funding, Bluevine has become a popular choice for entrepreneurs seeking alternative financing options as they largely focus on providing accessible and flexible financial solutions to help businesses grow.
Key features of Bluevine include -
Pros and Cons of Bluevine -
5. Fora Financial
Fora Financial is an online lender that specializes in providing quick funding solutions for small businesses. They offer two main products: short-term business loans and revenue advances, which are similar to merchant cash advances.
Known for its fast approval process and flexible repayment terms, Fora Financial caters to businesses seeking rapid access to capital.
Key features of Fora Financial include -
Pros and Cons of Fora Financial -
6. Fundbox
Fundbox is a financial technology company that provides working capital solutions primarily to small businesses. They offer a line of credit that allows businesses to access funds based on their outstanding invoices.
Known for its quick application process and ability to provide funds rapidly, Fundbox has become a popular choice for entrepreneurs facing cash flow challenges.
Key features of Fundbox include -
Pros and Cons of Fundbox -
7. Funding Circle
Funding Circle is an online marketplace that connects small businesses with investors. Essentially, it's a platform where businesses can borrow money from a pool of investors rather than traditional banks.
This model often leads to more competitive interest rates for borrowers. Funding Circle has expanded its services beyond peer-to-peer lending to include other financial products like business loans and credit cards.
Key features of Funding Circle include -
Pros and Cons of Funding Circle -
8. National Funding
National Funding is a financial services company that specializes in providing loans to small businesses as they offer both short-term working capital loans and equipment financing.
Known for its relatively fast approval process and flexible repayment options, National Funding is a popular choice for entrepreneurs seeking quick access to capital.
Key features of National Funding include -
Pros and Cons of National Funding -
9. CIT
CIT Group Inc. is a prominent financial services company that specializes in providing financing solutions to businesses.
They offer a wide range of financial products, including factoring, cash management, treasury management, mortgage loans, Small Business Administration loans, leasing, and advisory services.
Key features of CIT include -
Pros and Cons of CIT -
10. AltLINE
AltLINE is a division of The Southern Bank Company that specializes in invoice factoring, meaning they provide businesses with immediate cash by purchasing their outstanding invoices at a discount.
Essentially, AltLINE offers a form of working capital financing where businesses can sell their unpaid invoices to them and receive a portion of the invoice amount upfront, which in turn helps businesses to improve their cash flow and manage their finances more effectively.
Key features of AltLINE include -
Pros and Cons of AltLINE -
Also Read: Common Types of Bank Loans in the Philippines
Types of Small Business Loans Available in The Philippines
Securing the right type of financing is essential for small businesses in the Philippines to grow, manage cash flow, and navigate challenges.
Fortunately, the Philippine financial landscape offers a variety of loan options tailored to meet the diverse needs of small businesses, regardless of whether they are looking to expand their operations, purchase new equipment, or manage day-to-day expenses.
Small business loans in the Philippines come in various forms, each designed to meet specific financial needs. Here’s an overview of the most common types -
1. Term Loans
Term loans are one of the most common types of small business loans available in the Philippines. These loans provide a lump sum of capital upfront, which businesses repay over a fixed period, typically ranging from one to ten years.
Term loans usually have fixed or variable interest rates, and the repayment terms are agreed upon at the time of loan approval.
2. Microfinance Loans
Microfinance loans are specifically designed for small businesses and entrepreneurs who may not qualify for traditional bank loans due to limited credit history or lack of collateral.
These loans are typically smaller in amount and have shorter repayment periods. Microfinance institutions in the Philippines offer these loans to help micro-entrepreneurs start or expand their businesses, usually with flexible repayment terms and lower interest rates.
3. Working Capital Loans
Working capital loans are short-term loans designed to help businesses cover their day-to-day operational expenses, such as payroll, rent, and inventory purchases. These loans are crucial for managing cash flow, especially during periods of fluctuating revenue or seasonal demand.
4. Business Credit Lines
A business credit line offers a flexible financing option where businesses can borrow up to a pre-approved limit as needed rather than receiving a lump sum. This type of loan is similar to a credit card, allowing businesses to draw funds as required and only pay interest on the amount borrowed.
5. Invoice Financing
Invoice financing, also known as accounts receivable financing, allows businesses to borrow money against their outstanding invoices. This type of loan is particularly useful for businesses that experience delays in payment from clients but need immediate cash flow to cover their day-to-day expenses.
6. Equipment Financing
Equipment financing loans are specifically designed to help businesses purchase or lease new equipment or machinery. The equipment itself typically serves as collateral for the loan, which can result in lower interest rates compared to unsecured loans.
This type of financing is particularly beneficial for businesses in the manufacturing, agriculture, and construction sectors in the Philippines, where high-cost equipment is essential for operations.
7. Franchise Financing
Franchise financing is tailored for entrepreneurs looking to open a franchise of an established brand. These loans cover the costs associated with starting a franchise, including franchise fees, inventory, equipment, and initial marketing expenses.
This type of loan is ideal for individuals who want to start a business with a proven business model and brand support but need financial assistance to cover the upfront costs.
8. Government-Backed Loans
In the Philippines, government-backed loans are available through agencies like the Department of Trade and Industry (DTI) and the Small Business Corporation (SB Corp).
These loans are designed to support SMEs by providing them with lower interest rates, longer repayment terms, and more favorable conditions compared to traditional bank loans.
These loans are a valuable resource for businesses seeking financial support with lenient eligibility requirements.
Also Read: Non-Collateral Startup Business Loans in the Philippines
Eligibility Requirements For Securing Quick Small Business Loans in The Philippines
Securing quick small business loans in the Philippines involves meeting specific eligibility criteria set by lenders. These requirements ensure that the borrower is capable of repaying the loan and that the business is viable.
Here, take a look at some of the common eligibility requirements needed to secure quick small business loans in the Philippines -
1. Business Registration and Legal Documentation
Lenders typically require that your business is legally registered with the appropriate government agencies in the Philippines, such as the Department of Trade and Industry (DTI) for sole proprietorships or the Securities and Exchange Commission (SEC) for corporations and partnerships.
2. Minimum Operational History
Many lenders require that a business has been operational for a minimum period, usually ranging from 6 months to two years, depending on the lender. This requirement ensures that the business has a proven track record and is more likely to generate the revenue needed to repay the loan.
3. Stable Revenue and Cash Flow
Lenders will assess your business's financial health by reviewing your revenue streams and cash flow. You may need to provide financial statements, such as income statements, balance sheets, and cash flow statements, to demonstrate that your business has a stable and sufficient income to cover loan repayments.
4. Good Credit History
A good credit history is an important factor in securing a quick small business loan, as lenders will review your personal and business credit scores to assess your creditworthiness. A high credit score indicates that you have a history of repaying loans on time, which increases your chances of approval.
5. Collateral or Security
While many small business loans do not require collateral, having assets that can be pledged as security may improve your chances of securing a loan or obtaining better terms. Collateral can include real estate, vehicles, equipment, or inventory.
However, in the case of unsecured loans, lenders may instead require a personal guarantee, where the business owner agrees to be personally responsible for the loan repayment if the business defaults.
6. Business Plan
Some lenders may require a comprehensive business plan, especially for larger loan amounts or newer businesses. Having a well-prepared business plan should outline your business goals, strategies for growth, financial projections, and how the loan will be used to achieve these objectives.
7. Proof of Identity and Residency
Lenders will require proof of identity and residency to verify your personal information. This typically involves submitting government-issued identification, such as a passport, driver's license, or national ID, along with proof of residency, such as utility bills or a lease agreement.
8. Bank Account
Having an active business bank account is usually a requirement for securing a small business loan, as lenders will need your bank account details to deposit the loan funds and set up automatic repayments.
Also Read: Top 5 Legit Online Loan Apps in the Philippines
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How To Get Quick Small Business Loans in The Philippines - A Step-By-Step Guide For Philippine Businesses And Entrepreneurs
Securing a quick small business loan in the Philippines can provide the necessary capital to grow your business, manage cash flow, or handle emergencies.
Here’s a step-by-step guide to help Philippine businesses and entrepreneurs navigate through the loan application process -
1. Determine Your Financial Needs
Before applying for a loan, it’s crucial to clearly define why you need the loan and how much capital is required, so consider whether the funds will be used for expanding your business, purchasing inventory, covering operational expenses, or managing cash flow.
2. Research Loan Options
Explore the various small business loan options available in the Philippines, as each type of loan has different terms, interest rates, and eligibility requirements.
Some of the loan options available to Philippine businesses include term loans, microfinance loans, working capital loans, business credit lines, and government-backed loans.
3. Check Your Eligibility
Review the eligibility criteria set by the lender for the loan you’re interested in to ensure that your business meets these requirements before applying. Some common eligibility requirements include business registration, minimum operational history, stable revenue, good credit history, and sometimes collateral.
4. Prepare Necessary Documentation
Gather all the necessary documents required for the loan application. The documents usually required include your business registration certificate, business permits, financial statements, tax returns, proof of income, and bank account details.
Additionally, prepare personal identification documents such as a government-issued ID and proof of residency.
5. Choose a Lender
After researching your options and preparing your documents, choose a lender that aligns with your business needs by considering factors like interest rates, loan terms, processing time, and the lender’s customer service.
6. Submit Your Application
Complete the loan application form provided by the lender, whether online or in-person, to ensure that all information is accurate and complete, as any discrepancies can lead to delays or rejection.
Attach all required documentation and double-check your application before submission, and if applying online, make sure to receive an online confirmation of your submission.
7. Wait for Loan Approval
After submitting your application, the lender will review your documents and assess your creditworthiness. The approval process can take anywhere from a few hours to several days, depending on the lender and the complexity of your application.
During this period, the lender may contact you for additional information or clarification, so be prepared and alert to respond promptly to avoid any delays.
8. Review the Loan Offer
If your application is approved, the lender will provide a loan offer outlining the terms, interest rate, repayment schedule, and any associated fees. Carefully review these terms to ensure they meet your expectations and that you understand all obligations.
9. Accept the Loan and Receive Funds
Once you’re satisfied with the loan terms, accept the offer by signing the loan agreement. This can usually be done electronically or in person. After finalizing the agreement, the funds will be disbursed to your business bank account.
Most quick small business loans are disbursed within 24 to 48 hours after approval, giving you quick access to the capital that you need.
Also Read: Financial Planning for Small Businesses: Navigating Debt and Cash Flow Management
Pros And Cons of Securing And Utilizing Quick Small Business Loans in Philippines
Quick small business loans can be a valuable resource for entrepreneurs in the Philippines, as they provide much-needed capital to manage cash flow, expand operations, or handle emergencies. However, like any financial product, they come with both advantages and disadvantages.
Here, take a look at the pros and cons of securing and utilizing quick small business loans in the Philippines -
Potential Pros of Quick Small Business Loans
1. Fast Access to Capital
One of the primary benefits of quick small business loans is the speed at which funds can be accessed. These loans are designed to be processed rapidly, often with approval and disbursement of funds occurring within 24 to 48 hours, making them ideal for addressing urgent financial needs.
2. Flexible Use of Funds
Quick small business loans typically offer flexibility in how the funds can be used. Whether you need to cover operational expenses, purchase inventory, or invest in business expansion, these loans provide the freedom to allocate funds where they are needed the most.
3. No Collateral Required
Many quick small business loans are unsecured, meaning they do not require collateral. This is especially beneficial for small businesses or startups that may not have significant assets to pledge, as the absence of collateral reduces the risk for the borrower and simplifies the entire application process.
4. Improved Cash Flow Management
Quick small business loans can help businesses manage cash flow more effectively by providing immediate funds to cover short-term expenses. This can be particularly important during periods of fluctuating revenue or seasonal demand to ensure that the business remains operational and solvent.
5. Builds Business Credit
Successfully securing and repaying quick small business loans can help build or improve your business credit score. Having a strong credit history is crucial for availing future borrowing options and can lead to you being offered better loan terms and higher credit limits than before.
Possible Cons of Quick Small Business Loans
1. Higher Interest Rates
Quick small business loans often come with higher interest rates compared to traditional loans. The convenience and speed of these loans usually result in increased costs, which can add up over time and impact the business’s profitability.
2. Short Repayment Terms
These loans typically have shorter repayment terms, often ranging from a few months to a year. This means that businesses must be prepared to repay the loan quickly, which can put pressure on their cash flow and financial planning.
3. Potential for Overborrowing
The ease and accessibility of quick small business loans can lead to overborrowing, where businesses take out more credit than they can realistically repay. This can result in financial strain, increased debt, and potential default if not managed carefully.
4. Stricter Eligibility Requirements
While some quick small business loans do not require collateral, they may have stricter eligibility criteria, such as higher credit score requirements or a minimum operational history. This can make it challenging for new businesses or those with poor credit to qualify.
5. Risk of Debt Cycle
Relying on quick small business loans for continuous funding can lead to a cycle of debt, where businesses are constantly borrowing to repay previous loans. Doing so can create long-term financial instability and hinder the business’s ability to grow sustainably.
Also Read: Understanding Interest Rates and Fees for Business Loans in the Philippines
Effective Alternatives To Select Instead of Quick Small Business Loans in The Philippines
While quick small business loans can be beneficial in certain situations, they might not always be the best option for every business. Depending on your specific needs, several alternative financing options may be more suitable or cost-effective.
Here are some effective alternatives to quick small business loans for Philippine businesses and entrepreneurs to consider -
1. Business Credit Lines
A business credit line provides a flexible financing option that allows you to borrow funds as needed, up to a pre-approved limit. Unlike a lump-sum loan, you only pay interest on the amount you actually use.
2. Invoice Financing
Invoice financing, also known as accounts receivable financing, is an option where businesses can borrow money against their outstanding invoices. This alternative provides immediate cash flow without waiting for customers to pay their invoices.
3. Microfinance Loans
Microfinance institutions in the Philippines offer smaller loans with more flexible terms than traditional banks, as these loans are primarily designed for small businesses and entrepreneurs who may not qualify for larger loans due to limited credit history or lack of collateral.
Microfinance loans usually come with lower interest rates compared to quick small business loans and can be used for various business purposes, including expansion, inventory purchase, and working capital.
4. Peer-to-Peer Lending
P2P lending platforms connect borrowers directly with individual lenders, offering an alternative to traditional bank loans. These platforms often provide lower interest rates and more flexible terms compared to quick small business loans.
5. Equity Financing
Equity financing involves raising capital by selling shares of your business to investors. This can be a viable alternative if you’re looking to fund significant business growth or expansion without taking on debt. While equity financing doesn’t require repayment like a loan, it does involve giving up a portion of ownership and control of your business.
6. Government Grants and Subsidies
The Philippine government offers various grants and subsidies to support SMEs, which they can utilize to fund specific purposes such as research and development, technology upgrades, or expansion into new markets.
Unlike loans, grants and subsidies do not require repayment, making them an attractive option for businesses looking to grow without increasing their debt burden.
7. Supplier Financing
Supplier financing, also known as trade credit, involves negotiating extended payment terms with your suppliers, allowing your business to purchase goods or services on credit, with payment due at a later date.
In essence, supplier financing can help manage cash flow by delaying outflows, giving your business more time to generate revenue before payments are due.
8. Crowdfunding
Crowdfunding platforms allow businesses to raise small amounts of money from a large number of people, typically via the internet. This method can be particularly effective for launching new products or services.
Crowdfunding doesn’t require repayment like a loan, but it may involve offering rewards or equity to backers. Moreover, it is also an excellent way to test market interest in a new idea while raising capital.
Conclusion
By going through this article, we can conclude that quick small business loans will continue to be a crucial financial tool for businesses in 2024 and beyond, as they offer Philippine businesses the quick cash they urgently need to navigate through an increasingly dynamic and competitive market.
Whether it is for addressing urgent operational needs, seizing new opportunities, or managing unexpected challenges, quick fast business loans provide businesses and entrepreneurs alike with the agility and financial flexibility that modern Philippine businesses require.
While these loans offer significant advantages in terms of speed and accessibility, it’s essential for businesses to carefully consider the costs, terms, and repayment obligations before committing. By doing so, they can not only make sure they use these loans strategically but also ensure they are well-equipped to thrive in today’s fast-paced environment.
Frequently Asked Questions (FAQs)
1. What is the easiest loan to get immediately?
Credit card cash advance is often the easiest loan to get immediately. However, it comes with extremely high interest rates and fees. Consider alternatives like personal loans or payday loans, but be aware of their own costs and repayment terms.
2. Can I get a loan for 7 years?
Yes, you can get a loan for 7 years. Personal loans often offer repayment terms up to 7 years, providing flexibility, however, the exact loan tenure depends on the lender, loan amount, and your creditworthiness.
Certain factors, such as interest rates and monthly EMIs will vary based on the loan term, so it is essential for businesses to compare offers from different lenders to find the best option for your financial needs before opting for one.
3. What is the fastest and easiest SBA loan?
The SBA Express Loan is often considered the fastest and easiest SBA loan to obtain, as it offers quicker processing times compared to traditional SBA 7(a) loans.
With a maximum loan amount of PHP 20 million, as of 2024, it acts as a suitable option for many small businesses seeking rapid funding. However, keep in mind that while it's faster, it still involves some level of paperwork to be filled and eligibility requirements to be met before anyone can avail its perks.
4. What are express loans?
Express loans are typically short-term loans designed for quick disbursement, as they often require minimal documentation and have faster approval processes compared to traditional loans.
These loans are suitable for businesses with urgent financial needs but it is worth pointing out that they usually come with higher interest rates.
