Some of the Philippines' biggest companies started as small neighborhood stalls. With hard work and the right funding, they grew into nationwide chains worth billions of pesos.

You can grow your business, too! A business loan can provide the capital you need to expand, upgrade, or manage daily expenses. Not sure where to start? Use this simple step-by-step guide on how to get a business loan.

Spend time finetuning your financial plan. Aside from impressing lenders with your business acumen, it helps you understand what you really need and can afford.

Your financial plan should include this information:

• Business goals: what you want to achieve (i.e., start a business, expand operations, attract more customers, etc.) 
• Purpose of the loan:  how you’ll use the money to reach your business goal (i.e., buy new equipment, open new branches, renovate your store)
• Desired loan amount: how much you will borrow
• Financial projections: proof that you can pay for the loan (i.e., budgets, income statements and tax returns, sales forecasts)

Find commercial loans that meet your needs and resources—whether you’re investing in a food franchise or starting a home-based biz.

• If you’re planning a big purchase or expansion: Term loans give you a lump sum with fixed interest and payment schedules.
• If you need additional funds for daily expenses or seasonal dips in income: Lines of credit give you access to an emergency fund with a set limit. You borrow money as you need it and only pay interest on what you use.
• If you need emergency cash quickly: GCash has GCredit, a revolving credit line up to ₱30,000. To access it, just increase your GScore—you don’t need collateral or additional documents. 
• If you want to maintain cash flow until you receive customer payments: Invoice financing provides cash advances for outstanding invoices. It’s useful for businesses with long payment terms.
• If you need modest capital to start a small business: Microfinancing supports entrepreneurs who want to start simple ventures like carinderias, street carts, tailoring or laundry shops, or other home-based businesses. It has simpler requirements and application processes.

Lending institutions have different loan requirements, depending on the type of loan and the amount of money you want to borrow. However, you can use this general list to check if you meet the basic criteria.

• Must be a Filipino citizen 
• At least 21 years old and won’t be older than 65 when the business loan matures
• Good credit standing and financial capacity

• Valid operating license from the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative Development Authority (CDA), or the BMBE (Barangay Micro-Business Enterprise)
• At least one to three years of profitable business operations
• Meets the minimum annual gross sales

Review all your options! Compare their interest rates, payment terms, and requirements. Make a shortlist, then schedule appointments. 

As you explore your options, it's important to understand the benefits and challenges associated with different types of lending institutions.

Banks like BPI have a wide range of loans to help you start or expand your business.

• Pros: Multiple loan options, nationwide locations, accessible online information, and responsive customer service. They’re also regulated by the Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission (SEC), ensuring compliance with consumer protection laws like the Truth in Lending Act  
• Cons: Stricter financial requirements, more paperwork

DTI’s Pondo sa Pagbabago at Pag-asenso (₱3) allows micro-enterprises to borrow between ₱5,000 and ₱200,000 with low interest rates and no collateral. It’s open for businesses with at least one year of operation and assets less than ₱3 million.

• Pros: Lower income and other financial requirements and less paperwork (just present government-issued IDs, business registration and permits, and barangay clearance)
• Cons: Limited loan amounts, longer approval process

Visit the DTI P3 page to download the brochure or get the contact numbers of your region’s DTI office. 

The government-run bank prioritizes national development goals like boosting agri-business and micro enterprises. Thanks to this mission, it has more lenient lending criteria than other banks.

You can borrow from ₱300,000 to ₱1,000,000. If you have limited financial capacity, you can borrow small amounts, and then establish a credit history to qualify for larger loans.

• Pros: Lower income and financial requirements, higher loan amounts than DTI
• Cons: Limited loan packages compared to commercial banks

Download the DBP Small Business Puhunan Program brochure to get more details.

These offer business loans with flexible terms and quicker approvals. Make sure that you work with credible, SEC-registered companies. Options include First Circle and Esquire Financing.

• Pros: Fast approval process, more lenient credit requirements
• Cons: Less regulated than traditional banks, higher interest rates

Loan lending companies will ask for documents that show you’re the registered owner of a legitimate business. These include:

• Government IDs
• Company profile
• Proof of business address like utility bills or invoice 
• Business tax identification number
• Mayor’s permit 
• SEC or DTI certificate
• BIR certificate of registration

You also need to present proof of financial capacity. 

• Personal and company bank statements
• Income tax returns 
• Photocopy of audited financial statements

A business loan can help you finally start your venture or take it to new heights. However, like any other financial decision, you need to do research and look for options. Use GFiber Postpaid with its convenient monthly subscription, or GFiber Prepaid where you can buy data packages as needed, to check out different lending institutions and try online tools like loan calculators. You can even use GCash to send payments. You save time and effort, so you can focus on growing your business.