The Philippine entrepreneurial spirit is undeniable, but sometimes, your business needs a quick financial boost to seize an opportunity, bridge a cash flow gap, or cover unexpected expenses, since waiting for lengthy loan approvals can, most often than not, stifle your momentum. That’s where fast short term business loans come in!
Fast short term business loans are designed to provide fast financing solutions, helping businesses address immediate financial needs without long-term commitments.
These loans typically offer flexible terms, swift approval processes, and manageable repayment schedules, making them an attractive option for businesses seeking rapid access to capital.
This article will explore the best fast short term business loans options available in the Philippines, highlighting their features, benefits, and how they can support the financial health and growth of businesses.
How Do Fast Short Term Business Loans Work in The Philippines?
Fast short-term business loans are designed to provide quick access to capital for businesses in the Philippines, helping them address immediate financial needs and opportunities. These loans typically have shorter repayment periods, ranging from a few months to a year, and are often easier to obtain compared to long-term financing options.
The application process for short-term loans is streamlined, with less stringent documentation requirements and quicker approval times, allowing businesses to secure funds rapidly.
Here, take a look at the inner workings of fast short term business loans and see how they operate in the Philippines:
1. Simplified Application Process: Unlike traditional loans with extensive paperwork, fast short-term loans often prioritize speed. They may involve streamlined online applications or minimal documentation requirements.
2. Faster Approval Times: Traditional loan approvals can take weeks or even months. Fast short-term loans, however, are designed for rapid turnaround. Decisions can be made within days, or even hours, depending on the lender.
3. Smaller Loan Amounts: While convenient for quick access to funds, these loans typically offer smaller amounts compared to traditional term loans. This makes them ideal for covering temporary needs or specific purchases.
4. Shorter Repayment Terms: Given the fast access to capital, fast short term business loans come with shorter repayment periods. These can range from a few weeks to a year, ensuring a quicker repayment cycle. The average repayment period is between 6 - 12 months, but it can be extended to a period of 18 months.
5. Higher Interest Rates: The speed and convenience of these loans often come at a cost. Interest rates on short-term loans tend to be higher compared to traditional loans.
Also Read: Top 5 Legit Online Loan Apps in the Philippines
Top Fast Short Term Business Loans Available in The Philippines
Running a business in the Philippines can feel like a fast-paced adventure, as sometimes, unexpected costs or temporary cash flow dips can threaten to derail your momentum, but don't let these short-term setbacks turn into long-term problems.
In this section of the article, we will take a look at some of the best fast short term business loans available that will act as a financial first-aid kit for your Filipino business.
These loan options prioritize speed and convenience, offering quick access to funds to bridge gaps, seize opportunities, and keep your business thriving. From online lenders with speedy approvals to alternative financing options with flexible terms, we'll explore the best ways to inject your business with a quick cash boost and get you back on the path to success.
Here, take a look at some of the popular fast short term business loans available in the Philippines -
1. UnionBank Business Express Loan
UnionBank’s Business Express Loan is designed to provide businesses with quick access to funds, with approval times as short as 5 minutes.
The Business Express Loan allows businesses to borrow PHP 50k to PHP 1 million, depending on their financial needs and qualifications. This loan can be used for various purposes, including working capital, equipment purchase, and business expansion.
The key benefits of the UnionBank Business Express Loan include its competitive interest rates of around 3% and flexible repayment terms, which can range from 3 to 36 months.
2. BDO SME Ready Check
BDO’s SME Ready Check is another excellent option for businesses in need of fast short-term financing, as the approval usually takes around 3 to 7 days. This loan product provides a revolving credit line that businesses can access through the issuance of checks.
The SME Ready Check is ideal for managing cash flow and covering short-term operational expenses, as it offers the flexibility to draw funds as needed and only pay interest on the amount used.
BDO provides loan amounts ranging from PHP 500k to PHP 20 million, making it suitable for a wide range of business financing needs. BDO also offers competitive interest rates of 7% for a 1-year loan term and flexible repayment terms, enhancing the loan’s appeal to SMEs.
One of the significant advantages of the BDO SME Ready Check is its flexibility and ease of access.
3. Security Bank SME Business Express Loan
Security Bank’s SME Business Express Loan product offers quick approval times, with funds disbursed within 5 to 7 days of application.
The SME Business Express Loan allows businesses to borrow up to PHP 5 million, depending on their financial needs and creditworthiness.
The key benefits of the Security Bank SME Business Express Loan include its competitive interest rates, starting at 1.50% for a 1-year loan period, and flexible repayment terms, which can range from 12 to 36 months.
Security Bank also offers a streamlined application process with minimal documentation requirements, ensuring that businesses can access funds quickly and efficiently.
4. Esquire Financing Inc. (EFI) SME Business Loan
Esquire Financing Inc. (EFI) offers an SME Business Loan tailored to meet the fast financing needs of small and medium enterprises in the Philippines. EFI’s SME Business Loan provides quick access to funds, with approval times as short as 3 days.
Businesses can borrow from PHP 100k up to PHP 10 million, depending on their financial requirements and eligibility.
EFI’s SME Business Loan stands out for its flexible terms and personalized service. The loan offers competitive interest rates of around 3.5% per annum, and repayment terms ranging from 6 months to 2 years, providing businesses with the flexibility to choose a schedule that suits their cash flow.
5. First Circle Business Loan
First Circle offers a business quick access to capital, with approval times typically within 1 to 2 days. First Circle allows businesses to borrow amounts ranging from PHP 250k to PHP 20 million, depending on their needs and qualifications.
One of the significant advantages of the First Circle Business Loan is its fully digital application process, which streamlines the approval and disbursement stages. This convenience ensures that businesses can access funds quickly and efficiently.
Additionally, First Circle offers competitive interest rates ranging between 0.99% and 2.49% per month, and flexible repayment terms, ranging from 1 to 12 months.
6. EastWest Bank Business Loan
EastWest Bank offers a Business Loan tailored for SMEs, providing them with fast approval times, typically within 5 to 7 days, and allows businesses to borrow from PHP 25k up to PHP 2 million.
EastWest Bank's straightforward application process and minimal documentation requirements make it an accessible option for many businesses.
Additionally, the EastWest Bank Business Loan features competitive interest rates ranging from 5.10% for a 1-year loan, and flexible repayment terms, ranging from 12 to 36 months.
7. RCBC SME Business Loan
RCBC's SME Business Loan is designed to provide fast and flexible financing solutions for small and medium enterprises in the Philippines by offering quick loan approvals, with funds typically disbursed within 1 to 2 days of application.
Businesses can borrow up to PHP 10 million, depending on their financial needs and qualifications, and use the funds for various purposes, including working capital, equipment purchase, and business expansion.
RCBC's SME Business Loan stands out for its competitive interest rates starting at 1.1%, and flexible repayment terms, which can range from 6 to 60 months. The bank also offers a streamlined application process with minimal documentation requirements, ensuring quick and efficient access to funds.
8. PSBank SME Business Credit Line
PSBank offers an SME Business Credit Line that provides a revolving credit facility for small and medium enterprises in need of quick financing. This credit line allows businesses to access funds as needed, paying interest only on the amount used.
The application process for the PSBank SME Business Credit Line is straightforward, with approval times typically within 20 days.
Businesses can borrow from PHP 3k up to PHP 15k, depending on their needs and qualifications. PSBank offers competitive interest rates of around 7% p.a. and flexible repayment terms of up to 4 months, enhancing the appeal of this financing option.
9. Planters Bank SME Business Loan
Plantersbank, a subsidiary of Chinabank, offers an SME Business Loan specifically designed for small and medium enterprises seeking fast financing. This loan product provides quick approval and disbursement, with funds typically available within 3 days.
Businesses can borrow from PHP 30k up to PHP 10 million, depending on their financial needs and qualifications, and can use the funds for various purposes, including working capital, equipment purchase, and business expansion.
Plantersbank's SME Business Loan features competitive interest rates of around 8% p.a. and flexible repayment terms, ranging from 12 to 48 months. The application process is streamlined, with minimal documentation requirements, ensuring quick and efficient access to funds.
10. Radiowealth Finance Company (RFC) SME Business Loan
Radiowealth Finance Company (RFC) offers an SME Business Loan designed to provide fast and flexible financing solutions for small and medium enterprises in the Philippines. It offers quick approval times, typically within 5 days, and allows businesses to borrow from PHP 10k up to PHP 3 million.
RFC's SME Business Loan features competitive interest rates starting from 3% p.a. and flexible repayment terms, which can range from 3 to 6 months. The application process is straightforward, with minimal documentation requirements, ensuring quick and efficient access to funds.
Also Read: Choosing the Right Business Loan for Your Company's Growth
Pros and Cons of Utilizing Fast Short Term Business Loans in The Philippines
Fast short term business loans offer a valuable financial solution for businesses in the Philippines needing immediate access to capital. These loans can help address urgent cash flow issues, manage unexpected expenses, and take advantage of timely business opportunities.
However, while they provide significant benefits, they also come with certain drawbacks. That is why understanding the pros and cons of utilizing fast short-term business loans is essential for entrepreneurs to make informed financial decisions that align with their business needs and objectives.
In this section of the article, we will explore the advantages and disadvantages of fast short-term business loans, offering a comprehensive overview to help businesses weigh their options effectively.
Here, take a look at the pros and cons of fast short term business loans in the Philippines -
Pros
1. Quick Access to Capital
Fast short term business loans provide immediate access to funds, which is crucial for addressing urgent financial needs, such as unexpected expenses, emergency repairs, or short-term cash flow shortages.
2. Simplified Application Process
Fast short term business loans typically have a streamlined application process with minimal documentation requirements. This makes it easier and faster for businesses to apply and get approved compared to traditional loans.
3. Flexible Repayment Terms
Many fast short term business loans offer flexible repayment terms that can be tailored to match the business’s cash flow. This flexibility helps businesses manage repayments without straining their finances.
4. No Collateral Required
Fast short term business loans often do not require collateral, reducing the risk for business owners who might not have significant assets to pledge. This makes it accessible for more businesses, especially startups and small enterprises.
5. Chance To Seize Opportunities
Having quick access to funds enables businesses to seize unexpected opportunities, such as taking advantage of a bulk purchase discount, investing in a sudden market opportunity, or launching a timely marketing campaign.
Cons
1. Higher Interest Rates
Fast short term business loans usually come with higher interest rates compared to long-term loans. The increased cost of borrowing can add a significant financial burden on the business if not managed properly.
2. Frequent Repayments
Repayment schedules for fast short term business loans can be more frequent, often requiring weekly or even daily payments. This can create cash flow pressure and require careful financial management to avoid default.
3. Smaller Loan Amounts
The loan amounts available for fast short term business loans are generally smaller compared to long-term financing options. This might limit the ability of businesses to undertake larger projects or significant investments.
4. Potential for Debt Cycle
Due to the high costs and frequent repayment terms, there is a risk of falling into a debt cycle. Businesses may need to take out additional loans to cover existing loan repayments, leading to increased financial strain.
5. Impact on Credit Score
Failure to repay fast short term business loans on time can negatively impact the business’s credit score, making it more difficult to secure future financing and potentially harming the business’s financial reputation.
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Also Read: Types of Business Loans in the Philippines
How To Choose The Best Fast Short Term Business Loans in The Philippines
Selecting the right fast short-term business loan is a crucial decision that can significantly impact your business’s financial health and operational efficiency.
With numerous options available in the Philippines, it's essential to evaluate various factors to ensure you choose the best loan that meets your immediate financial needs without compromising your long-term goals.
Some of the key considerations include understanding the loan terms, interest rates, repayment schedules, and eligibility requirements. Additionally, assessing the lender's reputation and the overall application process can help you make a well-informed decision.
Here, we’ll take a look at some of the critical factors to consider when choosing the best fast short-term business loans in the Philippines. The criteria to choose the best fast short term business loans in the Philippines are -
1. Understand Your Financial Needs
Before applying for a loan, clearly define your financial needs to determine the exact amount you need to borrow and the specific purpose of the loan, whether it’s to manage cash flow, cover unexpected expenses, or seize a business opportunity.
Having a precise understanding of your financial requirements will help you select a loan that fits your needs without overborrowing or underborrowing, thereby ensuring efficient use of funds.
2. Compare Interest Rates
Interest rates can significantly impact the total cost of your loan, so compare rates from different lenders to find the most competitive option. Lower interest rates can reduce your overall repayment burden but also consider the annual percentage rate (APR), which includes additional charges.
A thorough comparison will help you identify the most cost-effective loan, ensuring that you do not overpay for the convenience of fast financing.
3. Evaluate Repayment Terms
Look for loans with repayment terms that align with your business’s cash flow. Short-term loans often require frequent repayments, which can strain your finances if not managed properly, so look for loans with repayment schedules that suit your revenue patterns, whether it’s daily, weekly, or monthly.
Flexible repayment terms can help you manage debt without disrupting your business operations.
4. Check Eligibility Requirements
Each lender has specific eligibility criteria, such as minimum revenue, operational history, and credit score requirements. Review these criteria to ensure your business qualifies before applying.
Meeting the eligibility requirements increases your chances of approval and can also affect the loan terms and interest rates offered, so make sure to gather all necessary documentation in advance to streamline the application process.
5. Assess the Application Process
A streamlined application process can save you time and effort. Evaluate how easy and quick it is to apply for the loan, including the documentation required and the approval timeline.
Some lenders offer online applications with minimal paperwork and fast approval times, making them ideal for businesses needing immediate funds, so choose a lender offering an efficient application process to ensure timely access to capital.
6. Review Lender Reputation
The reputation of the lender is an essential factor to consider. Look for reviews, testimonials, and ratings from other businesses to gauge the lender’s reliability and customer service.
A reputable lender is more likely to provide transparent terms, fair practices, and good support throughout the loan term. So it is always a good idea to ensure beforehand whether the lender is trustworthy to prevent future complications from sprouting and enhance your overall borrowing experience.
7. Consider Additional Charges
Beyond interest rates, be aware of any additional fees associated with the loan, such as processing fees, late payment penalties, and early repayment charges. These costs can add up and affect the overall affordability of the loan.
Carefully read the loan agreement to understand all potential charges, ensuring there are no hidden fees that could increase your financial burden unexpectedly.
8. Evaluate Flexibility and Additional Services
Some lenders offer additional services, such as financial advice, payment holidays, or loan restructuring options. These services can provide extra support and flexibility, making it easier to manage your loan and business finances.
Consider lenders who offer these value-added services, as they can enhance your borrowing experience and help you navigate financial challenges more effectively.
Also Read: Getting a Fast Loan in 15 Minutes in the Philippines
How To Apply For Fast Short Term Business Loans in The Philippines
Applying for a fast short-term business loan in the Philippines can provide the essential funds needed to manage cash flow, cover unexpected expenses, or seize immediate business opportunities, so it is important to understand the application process and why it is crucial for securing financing quickly and efficiently.
This process usually involves preparing necessary documentation, meeting eligibility criteria, and choosing the right lender. So, by following a structured approach, businesses can navigate the application process smoothly, ensuring timely access to the required capital.
Here, take a look at the entire process and all the important points to follow when applying for fast short term business loans in the Philippines -
1. Determine Your Loan Needs
Identify the specific amount of money you need and the purpose of the loan. Clearly defining your financial requirements will help you choose the right loan product and ensure that you borrow only what is necessary.
This step also involves understanding how the loan will be utilized to support your business operations or address immediate financial needs.
2. Research and Choose a Lender
Research various lenders offering fast short-term business loans in the Philippines. Compare their interest rates, loan terms, fees, and eligibility requirements. Look for lenders with positive reviews and a reputation for quick processing and approval.
3. Check Eligibility Requirements
Review the eligibility criteria of your chosen lender. Common requirements include a minimum operational period, revenue thresholds, and a good credit score. Ensure that your business meets these criteria before applying.
Gathering the necessary documentation, such as business registration, financial statements, and bank statements, in advance can help streamline the application process.
4. Prepare Necessary Documentation
Collect all required documents to support your loan application. This typically includes business registration papers, financial statements, tax returns, bank statements, and a comprehensive business plan. Having these documents ready and organized will fast-track the application process and increase your chances of approval.
5. Complete the Application Form
Fill out the loan application form provided by the lender and ensure that all information is accurate and complete. Double-check for any errors or missing details that could delay the processing of your application. Providing clear and precise information helps establish your credibility and reliability as a borrower.
6. Submit Your Application
Submit the completed application form along with the required documentation to the lender. Depending on the lender, this can be done online, in person, or via email. Ensure that you have included all necessary documents to avoid delays.
Follow up with the lender to confirm receipt and inquire about the expected processing time.
7. Wait for Approval
After submitting your application, wait for the lender to review and process it. This period can vary depending on the lender’s procedures. Some lenders offer quick approval times, often within a few days. Be prepared to provide additional information or clarification if requested by the lender during this period.
8. Review Loan Terms and Conditions
Once approved, carefully review the loan terms and conditions provided by the lender. Pay attention to the interest rate, repayment schedule, fees, and any other relevant details, and ensure that you fully understand the loan agreement before accepting it. Clarify any doubts or concerns with the lender to avoid future misunderstandings.
9. Sign the Loan Agreement
If you agree with the terms and conditions, sign the loan agreement. Ensure that all required signatures and details are correctly filled out but keep a copy of the signed agreement for your records.
Signing the agreement legally binds you to the loan terms, so make sure you are comfortable with all aspects of the contract before you proceed to sign it.
Also Read: Understanding and Solving Common Cash Flow Problems
When to Consider Alternatives For Fast Short Term Business Loans in Philippines
While fast short-term business loans can provide essential financial support for immediate needs, they are not always the best solution for every business situation. High interest rates, frequent repayments, and stringent eligibility criteria can sometimes make these loans less favorable.
For yourself and your business, understanding when to consider alternative financing options is crucial, especially if you want your business to maintain its financial health and ensure its long-term sustainability.
In this section of the article, we will explore scenarios where seeking alternatives to fast short term business loans in the Philippines may be more beneficial and help business owners like you to make better business decisions that align with their financial goals and operational needs.
Here, take a look at some of the scenarios -
1. High Interest Rates and Costs
If the interest rates and associated costs of fast short-term business loans are prohibitively high, it may be wise to consider alternative financing options. High borrowing costs can strain a business’s cash flow and profitability, making it challenging to meet repayment obligations.
Exploring lower-cost options, such as government grants, microfinance loans, or business credit lines, can provide more affordable financial solutions and reduce the financial burden on the business.
2. Frequent Repayment Requirements
Fast short-term business loans often come with frequent repayment schedules, such as daily or weekly payments. This can create significant cash flow pressure, particularly for businesses with variable income or seasonal revenue patterns.
In such cases, alternatives like invoice financing or trade credit may offer more flexible repayment terms that align better with the business’s cash flow cycle, reducing the risk of financial stress and default.
3. Stringent Eligibility Criteria
If your business does not meet the stringent eligibility criteria for fast short-term loans, such as high credit scores or extensive operational history, seeking alternatives may be necessary.
Options like peer-to-peer lending, crowdfunding, or borrowing from family and friends can provide access to capital without the strict requirements imposed by traditional lenders. These alternatives can be more accessible for startups and small businesses with limited credit history.
4. Need for Larger Loan Amounts
Fast short-term business loans often provide smaller loan amounts, which may not be sufficient for businesses requiring substantial capital for significant investments or large-scale projects.
In such cases, long-term loans, venture capital, or angel investors might be more suitable. These alternatives can offer larger funding amounts and longer repayment periods, better supporting extensive business growth and development needs.
5. Desire to Avoid Collateral Requirements
Many fast short-term loans are unsecured, but some may still require collateral, which can pose a risk to business owners if they default on the loan.
If you prefer to avoid putting your personal or business assets at risk, consider alternatives like government grants, revenue-based financing, or business incubators and accelerators. These options often do not require collateral and can provide the necessary funding without jeopardizing your assets.
6. Long-Term Financial Health
When considering the long-term financial health of your business, it’s important to evaluate whether a fast short-term loan is the best option. High-interest short-term loans can lead to a cycle of debt if not managed carefully.
Alternatives such as long-term business loans, equity financing, or strategic partnerships can provide more sustainable financial support, helping to maintain healthy cash flow and reduce the risk of financial instability.
Conclusion
Securing the best fast short term business loans for fast financing is crucial for businesses needing immediate access to capital to manage cash flow, cover unexpected expenses, or seize timely opportunities.
The top options available in the Philippines, such as UnionBank SME Business Loan, BDO SME Ready Check, RCBC SME Business Loan, and others, offer rapid approval processes, flexible terms, and competitive rates tailored to various business needs.
However, it's crucial to approach them strategically. Carefully evaluate your needs, compare loan options, and consider the potential drawbacks of higher interest rates and shorter repayment terms.
By using them for one-time needs or unexpected situations and responsibly managing the repayment plan, fast short-term business loans can become a valuable financial tool in your Philippine entrepreneurial journey.
Frequently Asked Questions (FAQs)
1. Which bank gives personal loans easily in the Philippines?
Here are some of the top banks in the Philippines which give personal loans easily -
- Metrobank Personal Loan - PHP 20k to PHP 2 million
- BPI Personal Loan - PHP 20k to PHP 3 million
- CIMB Personal Loan - PHP 30k to PHP 1 million
- SB Finance Personal Loan - PHP 30k to PHP 2 million
2. What is the top source of loans for Filipinos?
Determining the single top source is difficult as Filipinos utilize various loan options. Still, based on a recent survey, Microfinance NGOs were the leading source for formal loans, while cooperatives were the next best option preferred.
Banks are another major source, with some offering government-backed programs with potentially lower interest rates. Ultimately, the best source depends on your location, business stage, and eligibility.
3. How much is the interest rate for a business loan in the Philippines?
Here are some of the best interest rates offered by top banks in the Philippines for a business loan -
- Unionbank MSME Business Loan - 3% per month
- Zenith Capital Business Loan - Starts at 1.5% per month
- Security Bank SME Business Express Loan - 1.30% to 1.75% per month
- Maya Flexi Loan - 1%-5% per month
4. How to get an instant loan in the Philippines?
While truly instant loans are uncommon, the Philippines offers fast loan options instead. Explore online lenders known for streamlined applications and quicker approvals. They often cater to small businesses and might require minimal documentation.
Alternatively, consider microloans from government agencies or microfinance institutions for smaller, immediate needs. It is worth noting that these options often come with higher interest rates, so responsible borrowing is crucial.
