Last Updated On February 2023

How to Get Non-Collateral Business Loans in the Philippines

Starting a business is an exciting journey, but it comes with a lot of challenges. One of these challenges is financing the business. As they say, to make money, you need money. There are several ways of securing funding for a business—personal savings, borrowing money from friends or relatives, and applying for a bank loan. While borrowing money from relatives would require a good relationship to ensure that you would be able to pay them back, most banks would also ensure that you would be able to pay them back. And in case you default on your loan payments, they must have something to hold on to you to make up for the potential loss, and that is collateral. Collateral can be a motor vehicle, real estate, or any asset considered of financial value, such as jewelry or stock portfolios.

Some small businesses may not have collateral that they can present to banks, but that does not mean that they cannot secure a loan. Fortunately, some financial institutions offer non-collateral loans for small businesses in the Philippines.

What is a non-collateral business loan and how does it work?

A non-collateral loan is a type of loan that does not require the borrower to pledge any assets as collateral. Instead, the loan is granted based on the borrower's creditworthiness and ability to repay the loan.

In a non-collateral business loan, the lender evaluates the borrower's financial statements and other factors to determine the borrower's ability to repay the loan. If the borrower is approved, they receive the loan amount and are responsible for making regular payments, usually with interest, over a set period.

Non-collateral business loans are typically offered by banks, non-bank financial institutions, and online lenders. They are often used by small businesses that do not have valuable assets to pledge as collateral but need access to capital to grow their business. 

Advantages of Non-Collateral Business Loans

There are several advantages of availing a non-collateral loan in the Philippines, aside from not requiring the borrower to pledge any assets. Below are some of them:

Faster approval process

Non-collateral business loans typically have a faster approval process than traditional collateralized loans. This is because the lender does not need to evaluate the value of the collateral and can focus on the borrower's creditworthiness and ability to repay the loan.


Non-collateral business loans offer more flexibility in terms of how the loan proceeds can be used. The borrower is not restricted to using the loan for a specific purpose, as is often the case with collateralized loans.

Access to capital

Non-collateral business loans provide small businesses with access to capital that they may not have obtained. This can be particularly advantageous for startups and businesses with limited credit history or assets.

Opportunity to build credit

By repaying a non-collateral business loan on time and in full, a small business can improve its credit score and credit history. This can make it easier to obtain future loans and financing at more favorable terms.

Factors to Consider Before Applying for Non-Collateral Business Loans

Before applying for a non-collateral business loan, it's important to consider the following factors:

Financial statements

Lenders will often require financial statements, such as income statements and balance sheets, to assess the financial health of the business and determine the borrower's ability to repay the loan.

Business plan

Having a solid business plan can demonstrate to lenders that the borrower has a clear understanding of their business and a plan for how the loan proceeds will be used to grow the business.

Cash flow

Lenders may also evaluate the borrower's cash flow to determine if the business can generate enough revenue to make regular loan payments.

Interest rates and fees

Non-collateral business loans may have different interest rates and fees compared to collateralized loans. It's important to carefully evaluate the loan terms and compare them to other loan options before accepting the loan.

Repayment terms

Understanding the repayment terms, such as the loan term and repayment schedule, is important to ensure that the borrower can afford to make regular loan payments.

Application requirements

Non-collateral business loan applications require paperwork and documentation. It's important to understand the application requirements and have all the necessary documentation ready before applying.

Non-Collateral Business Loans in the Philippines

If you are looking for a small and medium-sized enterprise or SME business loan that is non-collateral, Esquire Financing Inc. or EFI is here for you. 

EFI offers a fast loan without collateral, and the requirements are just minimal. Below is the list of requirements, most of which you may already have if you have a registered business:

Additional requirements shall be submitted for specific types of business. For more information about Business Loans without Collateral, read Esquire Financing Inc. Business Loans Without Collateral.

Applying for a Business Loan from Esquire Financing

For more than a decade, EFI has been known for its accommodation for non-collateral start up business loans. They understand how important it is for small businesses to get financing easily and quickly. Thus, aside from having only minimal requirements, EFI makes application for a business loan easy with just three steps:

If you are interested in getting a business loan from Esquire Financing, just visit our loans application page and see for yourself how easy it is to get your loans approved. For more information and updates about the non-collateral loan in the Philippines requirements, visit or follow us on social media: Facebook and Instagram.