Do you have a business plan but cannot find the money to put it up? or are you looking for where to find the startup micro-small business loan in the Philippines? If so, this is the article for you!
In Southeast Asia, the Philippines is one of the fastest-growing economies. As more Filipinos work to improve their lot, they are also looking for ways to grow their businesses and provide better lives for themselves. If you want to start a business, no matter what you do, you will need capital.
Banks and financial institutions are the most common places to look when securing a startup micro-small business loan, but these are difficult due to so many requirements and rules. As we all know, these requirements might be too much for startup companies. How will you feel if your business plan is really good but your bank still denies you a loan because it has strict requirements?
You do not need to worry because there are other sources for startup micro-small business loans in the Philippines. In this post, I’ll tell you where to find startup micro-small business loan services in the Philippines.
So, let’s get started!
Where To Find Startup Micro-Small Business Loan In The Philippines
Not all lenders offer business loans. The reason is that there is a risk involved. But you have many choices, and we are here to help you determine which is best for your needs. These alternative places offer much simpler requirements for you.
The following are some sources where you can find startup micro-small business loans in the Philippines:
OFW (Overseas Filipino Workers)
You can borrow money from OFWs to start a small business. You will find it easier to choose an OFW online loan in the Philippines. The SSS Salary Loan with a 10% annual interest rate is one of the most popular loan assistance for OFWs. You can borrow up to twice your salary, payable in 24 monthly installments, or an amount equal to it. SSS offers salary loans to OFWs through its website.
Family And Friends
If you have relatives or friends who can lend money to start your small business. These people are the best because they know you and will be more willing to help you succeed in starting your own business.
Even though a loan from family or friends may seem easy, it could become complicated. If you can get a loan, make sure you repay it as promised, otherwise, your relative or friend’s face will always remind you about the money you lent.
Paluwagan
It is an informal group saving or money-lending system that is popular in the Philippines. Paluwagan is also a good option for getting money for starting your micro business until some of the members leave the group without paying. Depending on when you are in the cycle, you might not get as much money as you expected.
Paluwagan doesn’t have any interest rates or other fees, but it is all based on faith that everyone will pay up until the last member receives the funds.
Crowdfunding
Crowdfunding is when a large number of people fund a business or a project. With crowdfunding, you have access to a massive network of people through crowdfunding websites and social networks. There are many sites where you can crowdfund your startup business, but here are some of the more popular ones:
- Investree.
- Kickstarter.
- Indiegogo.
- GoGetFunding.
- SeedIn.
- GoFundMe.
These are some sites where you can show your product and people will send you money so you can start a business. Basically, you get some investors. Even though it sounds simple in theory, crowdfunding is still in its infancy in the Philippines. Many Filipinos remain cautious about sending money to strangers.
Online Lenders
Today, the internet has become very convenient for almost everything. And if you need to get a business loan, then it can also help. You just need to know where to look and what information to take into account when applying for one of these loans.
Online lenders provide Micro-Business Loans with quick loan processes on their official websites. Always check if an online lender is registered with the Securities and Exchange Commission.
Pawnshops
Pawnshops are another good place to get easy cash. You can get money from Philippines Pawnshops by using your jewelry, gadgets, vehicles, or appliances as collateral. If you need money to start up your small business, then you can take valuable items and pawn them until you can pay them off.
If you pawn an item for less than its value, you will get cash. In order to apply for a pawn loan, you will only need your collateral and a valid ID. You can get your loan amount within hours, and the process is quick.
But make sure to check what interest rates they offer before giving them any valuable item that may cost more than what you get. If you don’t pay up soon, you will lose that valuable item. The interest rate will increase rapidly so you must pay it up as soon as possible.
These are the best options where you can get loans in the Philippines to start your own business. You can also check all the best loans in Philippines online.
Conclusion
So, these are the places you can find Startup Micro-Small Business Loan in the Philippines and we hope you found this article helpful.
There are many microcredit options available here that can help you start your own small business or finance an expansion of your current operation. In the Philippines, finding a startup micro-small business loan can be difficult, but not impossible.
You can get approved much more easily than with traditional banks, so if you’ve had trouble getting approved, this will help.
Thanks for reading!
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