Last Updated On January 2023

Productive Loans: Your Ideal Partner in Building Your Business

You may have a great idea for a business, but you do not know where you should start. Usually, the problem lies with business financing. Loans are available to bankroll a business, which you may already know. But did you know that there is a type of loan specifically for starting a business? It is called a productive loan.

What is Productive Debt or Loan?

A productive debt or loan is a type of financing that is designed to help individuals start or grow their own businesses. This type of loan can be used to purchase equipment, hire employees, invest in marketing or advertising, or cover other business expenses. A productive loan is different from other types of loans because it is typically based on the potential profitability of the business, rather than the creditworthiness of the borrower. The lender will evaluate the business plan and financial projections to determine whether the loan is likely to be productive or profitable for both the borrower and the lender.

To qualify for a productive loan, borrowers may need to provide a detailed business plan, financial statements, and other documents that demonstrate their ability to repay the loan. The terms of the loan, including the interest rate and repayment schedule, will depend on the lender and the borrower's creditworthiness.

A productive loan can be a useful tool for entrepreneurs who are looking for a business loan in the PH to start or expand their own business.

Types of Productive Credit Based on Use

Productive loans can be categorized into different types based on their intended use. Some common types of productive loans include:

The specific terms and eligibility requirements for these loans will vary depending on the lender and the borrower's creditworthiness. It's important for businesses to carefully consider their financing options and choose the type of productive loan that best meets their needs.

Types of Productive Loans Based on Term

Productive loans can also be categorized based on their terms, which refer to the length of time over which the loan will be repaid. Some common types of productive loans based on terms include the following:

Like the ones above, the specific terms and interest rates for each type of loan mentioned above will vary depending on the lender and the borrower's creditworthiness. It's important for businesses to check the terms and repayment schedule for each loan option and choose the option that best meets their needs and budget.

Things to Consider Before Applying for Productive Loans​​

Before applying for a productive loan, someone who is starting a business should carefully consider their financial needs, and the risks associated with taking on debt. Here are some crucial factors to consider:

By considering these factors and developing a solid plan for managing debt, someone who is starting a business can make informed decisions about whether a productive loan is the right choice for them.

Where to Apply for a Productive Loan for Business Capital in the Philippines

There are several institutions where you can apply for an SME business loan in the Philippines to start your business. Here are some options:

EFI has been around for more than a decade, with the specific goal of helping SMEs. Esquire Financing Inc. has been partnering with emerging entrepreneurs in the country by providing loan without collateral in the Philippines. Check out our Loan Testimonials page for success stories.

EFI truly understands the unique needs of SMEs. Therefore, if you need a productive loan, visit our loan applications page today to start fueling your business dream! For more information and updates, visit or follow us on social media.