Small and medium-sized enterprises (SMEs) are vital in driving economic growth in the Philippines, contributing significantly to job formation, innovation, and overall prosperity.
However, one challenge SMEs often encounter is securing the necessary financing for their growth and expansion. Traditional banks and government agencies have stringent requirements and lengthy approval processes, making accessing the funds they need difficult.
Enter lending companies. They provide a lifeline to help businesses flourish by offering flexible and affordable SME loans.
If you’re a business owner seeking the top lending companies offering SME loans in the Philippines, read on as we learn what these loans are, the SME loan requirements for each organization, and their advantages and disadvantages.
6 Lending Companies Offering SME Loans in the Philippines
Several lending companies stand out as valuable options for businesses seeking financial support. They offer various business loan options, each with unique advantages and disadvantages.
1. Zenith Capital
Zenith Capital is a renowned lending company in the Philippines, celebrated for its customer-centric approach. With a solid local presence, they provide SMEs with loan options, including working capital loans, business expansion loans, and equipment financing.
The company is well-regarded for its competitive interest rates and flexible repayment terms. Their swift loan approval process enables SMEs to access funds promptly, and they offer custom-tailored financial solutions to meet the businesses’ specific needs.
However, while their interest rates are competitive, their eligibility criteria require a solid financial track record. To qualify for a Zenith Capital SME loan, you must prepare business registration documents and financial statements.
Zenith Capital can tailor flexible repayment terms to suit your financial capacity, and their fees are transparent and reasonable. They also offer quality customer service known for its helpful assistance.
2. First Circle
First Circle is a leading digital lending platform with a robust online presence, known for simplifying the SME loan application process. They specialize in revolving credit facilities that allow businesses to efficiently manage their working capital.
One of their strengths lies in their user-friendly application process, which is streamlined and easily accessible online. They offer a flexible credit line that businesses can access whenever needed, providing financial freedom.
On the other hand, interest rates with First Circle may go higher than those of traditional bank loans for smaller loan amounts. Their credit limits may also not be suitable for larger SMEs.
Eligibility requirements for First Circle include providing your business registration, a government-issued ID, or an Alien Registration Card (ARC) as proof of Philippine residency, and your business should have an annual revenue of at least ₱5 million.
While interest rates with First Circle may vary based on individual circumstances, their transparent fee structure and commitment to efficient service contribute to their appeal.
SeekCap is a prominent player in the SME lending sector, offering a wide array of options to cater to various business needs through its partner lenders.
Functioning as a digital marketplace, SeekCap partners offer term loans, trade financing, and supply chain finance, providing a variety of choices to suit your specific requirements.
One of the key advantages is that you don’t need to provide collateral, and competitive interest rates are available with flexible terms. However, because it operates as a marketplace, you must check each partner lender’s eligibility criteria and rates.
4. Esquire Financing
Esquire Financing is another non-collateral lending company that strives to provide fast loans to SMEs.
It can be a highly attractive option, especially if you have limited assets and need quick access to funds. Their streamlined three-business day decision process allows for speedy application approval, and you can complete this online.
With Esquire Financing, you can borrow up to ₱10 million, and the credit committee will determine your specific interest rate. After approval, you can further discuss the terms of your loan with the company.
However, they have strict and comprehensive documentation requirements. You’ll need to provide various documents, including pictures of your business’s interior and exterior, a location map, a mayor’s permit, and more. Additional documentation requirements may apply depending on your business structure, whether it’s a sole proprietorship, corporation, or partnership.
5. Radiowealth Finance Company
Radiowealth Finance serves SMEs that many often overlook or find difficulty in getting loan approvals. This includes businesses such as sari-sari stores, laundry services, and wet markets. The company is known for its flexibility in accepting different types of collateral, including vehicles and livestock.
With a long history of providing financial solutions to SMEs, Radiowealth Finance is a reliable choice in today’s market. You can borrow as much as low as ₱10,000 and as high as ₱3 million, with flexible payment terms of up to 30 months.
Interest rates and terms may differ depending on the loan product, so you should carefully evaluate their offerings to ensure they align with your goals.
Radiowealth Finance does have specific eligibility requirements. Your business must have been operating for at least a year and making profits. You may also need to provide additional business documents depending on the type of loan you’re applying for.
6. Right Choice Finance
Another company that utilizes the ease-of-use technology is Right Choice Finance, where you can download their app and apply for a loan in just a few clicks. They have non-collateral and secured loans, with a maximum of ₱3 million.
With competitive interest rates, some as low as 2.5%, they offer flexibility in payment frequency, allowing you to choose between semi-monthly or monthly payments. Right Choice Finance boasts an efficient approval process with a turnaround time of within 48 hours, and their loan terms can run up to 24 months.
However, they require applicants to have a checking account, as they accept post-dated checks (PDCs) as payment. Additionally, your business should have been operational for about a year. They may also require you to submit additional documents besides the usual registration, application form, and bank statements.
Your Partner to Prosperity
Selecting the right SME lender is paramount to your business’s success. It’s not just about securing funds but also about finding a financial partner whose goals align with yours. The advantages, disadvantages, eligibility requirements, and loan terms of different lenders can significantly impact your business operations.
If you’re ready to take the next step and secure the financing, consider turning to Zenith Capital. We are among the most trusted lending companies in the Philippines, offering a hassle-free and easy business loan application process.
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.