Business loan is an essential tool for the development of any enterprise. But since enterprises are different – in terms of ownership, gross income, etc., the credits for their financing are also different. Business loans can be roughly divided into long-term and short-term. Long-term credits have a term of 1 to 7 years, sometimes up to 15 years (in the case of a mortgage). Short-term business loans, as a rule, do not exceed a term of 12 months.
Long-term credits are mostly issued against collateral with the lower interest rate, which is an undeniable pros.
Short-term credits, most often, are issued to enterprises without collateral. The interest rate for such loans is naturally higher, but getting approval for these types of loans is much easier.
Best Business Loan Offers
What does the best offer mean? Of course, this is a very individual concept. However, we will try to designate it as a loan with a low interest rate and preferably with the longest loan term. So, the rating of TOP-5 Business loans:
- Development Bank of the Philippines:
- Interest rates: 9% – 10% APR
- Term up to 2 years
- Collateral: yes
- Minimum amount: – PHP 30 000; Maximum – 1 000 000 PHP
- 1st Valley Bank:
- Interest rates: 18% APR
- Term up to 2 years
- Collateral: Gold and Gems
- Minimum amount: – PHP 50 000; Maximum – up to 140% of the appraised value
- East West Bank Philippines:
- Interest rates: 18% – 23.5% APR
- Term up to 3 years
- Collateral: no
- Minimum amount: – 1 000 000 PHP; Maximum – 5 000 000 PHP
- Mindanao Consolidated:
- Interest rates: 12% – 30% APR
- Service charge: 2% to 7% of amount
- Term up to 5 years
- Minimum amount: – 3,000,000 PHP
- Maximum amount: – 100,000,000 PHP
- Interest Rates: 26.9% APR
- Minimum amount: 100,000 PHP
- Maximum amount: 2,000,000 PHP
- Term: 6-60 months
- Disbursement Fee: 1,750 PHP
How to choose the best business loan option that is right for you?
A huge number of credit organizations and their offers creates certain difficulties with the choice. Firstly, entrepreneurs do not have time to study all the proposals, which is fraught with the loss of a profitable Business loan. Secondly, it will also take a lot of time to contact creditors, to clarify all the nuances.
However, there is a way out – use the UpFinance service. This site accumulates all credit offers in the Philippines, here you can quickly and easily get acquainted with all offers for a Business loan. To do this, go to the UpFinance website and select the type of loan – “Business loan” in the top menu under the item “Loans”. The service will give you all the lenders offering this type of loan, by clicking on the name of the lender, you will be taken to a page where you can familiarize yourself with the terms of lending, requirements for the borrower and find out the address and contact numbers.