10 Ways to Fund & Finance Your Business in the Philippines
If you’ve heard people say “managing a business is the hardest part of entrepreneurship.” Well, they lied.
Because the steepest challenge of an entrepreneur begins way before the startup even materializes. After all, no matter how revolutionary your business idea is, you won’t get the slightest progress without funds to back it up.
Your first Goliath is finding funding for your business.
And if you’re an aspiring Filipino entrepreneur, here are the 10 best ways to fund and finance your business in the Philippines.
10 Ways to Fund & Finance Your Business in the Philippines
1. Financing Companies
These institutions are designed to help MSMEs with startups by providing hefty loans from the get-go.
Unlike banks that require collateral, financing companies can loan you funds unsecured, making them an excellent choice for entrepreneurs without many assets. Plus, since the Securities and Exchange Commission regulates financing companies, you know you’re in good hands.
One great financing company is Radiowealth Finance Corp (RFC) where you can get approved in just 3 EASY STEPS!
If you’re in need of Multipurpose Loans and Business Loans,
you may CLICK HERE to apply for an RFC Loan.
Related Post: RFC Loan: Guide To Apply for A Loan w/ Radiowealth
2. Bank Loans
If you have an asset to spare, bank loans can significantly reduce your interest rate as long as the loan is secured by your collateral. Albeit there are some bureaucratic steps you need to fulfill like having an acceptable credit score but nonetheless, bank loans are secured options to fund your business.
Looking for a good bank loan? Check out Citi Personal Loan and see which loan you’re eligible to access.
CLICK HERE for a faster application of Citi Personal Loan. Experience approval in as fast as 24 hours, flexible terms of 1 to 5 years with no collateral or guarantor needed.
3. Credit Card
If you’re a credit card owner, then it’s presumable that you have a decent credit score. Loaning against your credit card (within the credit limit) can be another quick workaround if you’re having a capital slump.
Unlike personal loans, the money is given right away, whether secured or unsecured.
Do you want to apply for a Credit Card? Try Citi Bank’s Cash Back CARD and enjoy earning cash backs for every purchase you make!
CLICK HERE for a faster application.
Related Post: Citi Cash Back Card Review 2022
4. Cooperative
Each cooperative has its respective rules and regulations when it comes to lending. But one may not apply for a loan in excess of the prescribed maximum loanable amount. Although, if you want to maximize the benefits, cooperative membership is a must.
5. Pawnshop
This is a quick option for the bling-bling gang. A pawnshop may offer a loan in exchange for collateral (commonly jewelry or gadgets). Your loanable amount will depend on the appraised value of the item.
6. Government Entities
Institutions like the Social Security System (SSS) and Government Service Insurance System (GSIS) have their programs to loan funds to eligible members. You may also seek the Department of Trade and Industry’s (DTI) Negosyo Act for cash assistance.
7. Informal Lenders
This is unadvisable, but what can we do when push comes to shove, eh?
Loan sharks are common in the Philippines, and if you have a bad credit score for formal lending companies, these unsecured loans might be a quick fix to pull you out of your predicament.
8. Family, friends, and relatives
Crowdsourcing from friends and families is never a bad option. Only this time around, you use relational leverage to borrow funds. You may opt to purely borrow money with a promise of remittance or offer to make them business partners.
Just make sure to pay up if you don’t want to lose their confidence in you.
9. Liquidating Assets
If you have depreciating properties like cars or houses, selling them can give you the funds you need. And selling won’t burden you with interest rates like loans.
10. Save up for it (if everything else fails)
If none of the options above fit you because you’re risk-averse or have no definite source of income to cover the loans, then saving up might be the best option. It will take time before you get your business operational, but it’s the safest way possible.
Getting a part-time job or a side-hustle solely dedicated to your entrepreneurial dreams is one option.
Key takeaways
Getting a business off the ground starts with having capital. And for regular people like you and me, we have to explore all possible options to get us through this hitch. We provided 10 of the most helpful solutions to fund your business in the Philippines. Hopefully, you find a strategy that suits your settings best!
10 Ways to Fund & Finance Your Business in the Philippines