Last Updated On July 2021

Business financing strategies for you

There are several challenges every entrepreneur has to overcome to become successful. At the top of that list is access to financing. Luckily, several SME loan companies have made it easier for business owners to apply for a business loan online. In addition to this, loan companies are going the extra mile by educating entrepreneurs on how business financing works.

Before you click on the APPLY NOW button on that online business loan application portal, be sure to consider other types of business financing strategies applicable to your business requirements. Here are some ideas to help you understand it better:

Raising capital from banks

Sadly, only 20%-40% of the total registered businesses in the country have access to bank loans in the Philippines. This is due to collateral prerequisites, documentary requirements and lengthy process. If you have access to bank loans, here are items to keep in mind:

Personal assets

Tapping on your personal assets or personal finance for additional capital can help your short-term needs. Along with using their own personal assets, many business owners also turn to friends and family for loans. Compared to other options, this strategy may be more flexible in terms of rates and payment terms. Here are some things to consider before getting this type financing:

When it comes to personal assets:

When borrowing from friends and family members:

Equity investment

As explained in a separate article, equity financing is a type of financing strategy where venture capitalists offer funding in exchange for ownership stake. Most business owners prefer other forms of financing over equity investment because 1.) equity financing is hard to come by and 2.) They find it difficult to give up control over their business. Nevertheless, if you have access to this type of financing, here are several things to remember:

Esquire Financing Inc. non-collateral business loan

Esquire Financing Inc. is a non-bank financing institution that offers collateral-free business loans to business owners nationwide. Since its inception back in 2011, EFI has served more than 18,000 SMEs across all industries. Here are several items that’s worth considering when applying for a business loan with EFI:

How to apply for a business loan in the Philippines

Additional working capital plays an essential role in getting your business to the next level. Yes, it’s easier for a business owner to gain access to additional working capital today through online lending or online loan application portals. However, as tempting as it is, don’t bite more than you can chew.

Regardless of where you’re getting the loan from, ask yourself first why you will take out a loan in the first place. If you’re going to use the funds to pay other debts or for non-business related expenses, you have to rethink your spending habits.

See how we can help you finance your business. Download our 1-page application form or visit today.