7 Questions to Ask Yourself Before Getting a Loan in the Philippines

We hope the latest issue of the Zenith newsletter finds you well. This month’s edition tackles the state of business loans in the country and will talk about the questions you need to ask yourself and your teams before you commit to getting a Philippine Business Loan.

The current circumstances may find you in an uncertain position financially and a loan will give you the opportunity to balance the books. However, you must seriously assess whether using a business loan is the soundest financial move for your business.

7 Questions to Ask Yourself Before Getting a Loan in the Philippines

1. Am I eligible to apply for a loan?

Before you even shop around for business loans, figure out if you’re able to get a loan from most banks and financial organizations. If there are fundamental issues that prevent you from applying for a loan (i.e. bad credit rating), you’ll need to sort these issues out first.

2. Why am I getting a loan?

This question has a heavy influence on whether a loan is the best decision for your company, especially for those exploring small business ideas at home. If you have an unpaid expense that needs to be sorted immediately, then a loan could be a viable option for your business.

3. How much do I need to borrow?

Your answer to the previous question will influence this and whittle down your options. Different lenders have different minimum and maximum amounts, and the amount you can borrow is limited by your credit score. Identify your minimum loan amount and start from there.

4. Do I have debt anywhere else?

Most lenders will not even entertain your loan requests you need if you still have outstanding payments with another lender. They understandably will find it hard to trust a loan applicant to pay their dues on time if they still have debt to clear. Work with your team to clear these debts before considering a sizable business loan.

5. How do I plan to pay this loan?

Payment schedules for loans vary among lenders. If your business expects cash to come in twice a month, it would be best to find a lender that can accommodate your business. Otherwise, you need to organize your company in such a way that you can pay your fees daily or weekly.

6. Will I need to offer collateral for the loan?

Payment schedules for loans vary among lenders. If your business expects cash to come in twice a month, it would be best to find a lender that can accommodate your business. Otherwise, you need to organize your company in such a way that you can pay your fees daily or weekly.

7. What fees am I willing to pay?

Different lenders incorporate different fees on their loans, and these fees can easily balloon your dues to an amount you’re less than comfortable with. Understanding which fees you’re willing to pay will help streamline the decision-making process.

If the answers to the questions listed above justify getting a loan, you should push through with the application. However, it’s important to find a lender you can trust that offers fair interest rates.

Get in touch with our experts at Zenith Capital and discover how our business loans can help you achieve your goals.

Rizza Templonuevo

Rizza Templonuevo is not just an accomplished finance professional and business leader, but also a loving wife and a dedicated mother of two. With a passion for helping businesses grow and thrive, she brings her extensive knowledge and expertise as Vice President of Zenith Capital Credit Group Corporation to help countless SMEs and corporations across the Philippines access the financing they need to succeed.

When she’s not busy with work, Rizza enjoys immersing herself in the worlds of fashion and social events, as well as traveling to new and exciting places.