Do you require funds to start or expand your company? Applying for a business loan in the Philippines is one of the practical solutions available to entrepreneurs like you. A business loan is essentially a form of personal loan designed to help you finance your business. It allows you to borrow money that you must repay (plus interest) over a set period of time.

Commercial banks are one of the Philippines’ traditional sources of business loans. They provide loans to aspiring and established Filipino enterprises in the millions of pesos. If you’re considering a bank loan for your business, here are the steps you’ll need to take:

Step 1: Determine why you’re in need of a loan.

What are you hoping to achieve with the funds? When you apply for a business loan, be sure you’re doing it for the correct reasons, such as buying equipment or real estate, increasing working capital, funding a franchise, or expanding your business.

Getting a company loan, on the other hand, is a bad choice if it will be used to buy unneeded business assets or fund recurring losses.

Step 2: Determine how much money your company requires.

Before you apply for a business loan, you should have a reasonable estimate of how much money you’ll need for your company based on its goals. If you ask for too much, the lender will mistrust your ability to manage your firm. If you ask for too little, you’ll soon be faced with issues like a shortage of working capital or the inability to acquire a vital piece of equipment for your business.

As a result, you must conduct cost research, assess your current financial resources, and prepare your budget accordingly. This method, you’ll be able to come up with a quantity that’s sufficient for the loan’s purpose.

Step 3: Determine whether you qualify for a business loan.

The following individuals are eligible to apply for a business loan in the Philippines:

Individual entrepreneurs

• Filipino citizens who are 21 years old but not yet 65 years old when the debt matures.


• Owners of businesses that have been profitable for at least two years


• Non-entrepreneurs (workers or professionals) who have had a regular salary for at least two years


• Excellent credit standing

Partnerships/Corporations

• A business that has been profitable for at least two years and is registered with the DTI or the SEC.


• Gross sales minimums for the year (depending on the bank)


• Excellent credit standing

Step 4: Determine which loan is best for your business.

Small and medium-sized businesses, as well as franchising businesses, can get short- and long-term loans from a range of banks in the Philippines. You can’t just pick a company loan at random or settle for one from a reputable bank. Know your options—do some research to see which lenders can meet your business loan requirements. Examine the loan’s qualities as well.

You may use a financial comparison website to compare business loans for you to save time and effort when choosing on the best loan for your small business.

Step 5: Submit the required documentation.

Gather all of the documentation that your preferred bank requires and send originals and photocopies. The following documents are typically requested by banks from business loan applicants:

Basic Documents 

• Loan application form signed and finished


• The most recent tax returns (ITRs)


• Bank statements from the most recent period


• Valid Identification

Documents for business

For new business owners/employees/professionals

• Employment certificate


• applicant for a business loan resume


• Pay slips most recent

For entrepreneurs

• Business background/company profile


• DTI/SEC registration certificate or business permit


• Financial statements audited most recently


• Articles of Incorporation or Articles of Partnership


• Board decision (for corporations)


• List of important suppliers and customers, together with information on their dealings

Check the issuing bank’s official website for a complete and detailed list of documentation requirements.

In a nutshell, applying for a business loan in the Philippines entails determining the loan’s purpose and amount, reviewing the bank’s eligibility conditions, selecting the best loan for your company’s needs, and providing the appropriate papers.

After you’ve completed the final step, the bank will need 3 to 7 business days to process your business loan application.