The World Bank stated that COVID-19 brought about the largest economic crisis in over a century, with its effects felt globally. During the pandemic, 66% of Philippine firms lacked the finances necessary for regular corporate operations such as payroll, taxes, and suppliers.
Although many parts of the world have emerged from lockdowns and quarantines, many businesses can still feel the lasting financial effect of the pandemic. If you’re looking for additional financing for your operations, it’s worthwhile to consider a business loan.
A business loan is a common type of loan that businesses use to fund or expand their operations. It can help them overcome financial challenges, such as a slowdown in sales, or seize growth opportunities. While business loans are beneficial across industries, certain sectors may derive greater advantages from them than others.
To learn more about these sectors, continue reading the article below.
6 Key Industries Harnessing the Power of Business Loans
There are many uses for a business loan, depending on the industry. Business financing can help various industries achieve their goals and overcome their challenges. Here are some key sectors harnessing the power of business loans today.
1. Manufacturing
Despite the manufacturing industry seeing a 10.7% increase in April 2023, it still doesn’t eliminate the fact that machinery and equipment are expensive. A recent report found that the rising production costs have compelled local factories to downsize their workforce and hamper their growth. Supply chain bottlenecks also pose a challenge to the manufacturing industry.
Manufacturing loans can help you overcome these difficulties in several ways. For instance, the additional capital can enable you to cover rising input costs while maintaining your workforce.
2. Construction
Experts forecast the construction industry in the Philippines to grow 9.6% by 2025, with the government deeming it a key sector in the country’s post-pandemic recovery.
However, the industry still faces challenges with rising raw materials and equipment costs, as indicated by 58% of construction decision-makers and influencers. It isn’t surprising, especially with inflation rising to brutal heights.
Respondents also highlighted concerns regarding staff management, sustainable competitive bidding, and staying updated with digital transformations. With construction business loans, you can get additional financing to address rising production costs and inflation and fund your construction projects.
3. Agriculture
The agriculture sector of the Philippines is one of the main drivers of economic growth. Many private companies continuously develop innovative equipment to boost the quality and quantity of their productions.
Your agricultural company can apply for a business loan to gain the capital necessary to invest in high-tech, smart agriculture technology, such as a sensor-equipped smart greenhouse that optimizes temperature for crops.
4. Retail
According to Retail Asia, consumer spending is set to grow to 5.5% year-over-year in 2023. Retail business loans can help you position your company to take advantage of the growth in consumer spending in several ways.
For instance, the additional capital can help you stock up your inventory to ensure you have enough to sell to the influx of customers. It may even allow you to invest in product development and research to produce better products for your customers.
5. Technology
The tech industry is anticipated to grow tremendously in the coming years, with artificial intelligence (AI), 5G networks, and the Internet of Things (IoT) becoming increasingly popular.
Business loans can help your tech company take advantage of emerging technologies, allowing you to automate repetitive tasks and expand your connections with other devices and companies nationwide.
Globe Telecom, a prominent company in the tech and telecom space, leveraged business loans to enhance its operations. In December 2021, the company secured a ₱15 billion loan to boost its capital expenditure, refinance debts, and fulfill general corporate requirements.
6. Restaurant
The restaurant industry was among the most affected by the pandemic, with sales plummeting from ₱3.08 billion in 2019 to ₱1.38 billion in 2020, according to Statista. But as pandemic restrictions ease, industry experts forecast a potential surge in customers engaging in “revenge dining” at restaurants.
You can apply for an enterprise business loan for your restaurant to ensure you have enough inventory and staff to accommodate the rush of customers. Additional financing can also help you afford upgraded equipment to improve the quality of your meals and potentially even expand your menu offerings.
Empower Your Business with Business Loans
Business loans provide additional funds to help your company overcome financial challenges, such as rising costs, equipment upgrades, and expansion, regardless of your industry.
If you want to apply for a business loan, consider working with a reputable lending company in the Philippines, such as Zenith Capital.
Zenith Capital has been recognized as one of the top financing companies in the Philippines, serving over 5,000 clients nationwide and releasing over ₱8 billion in business loans. Our streamlined process ensures quick loan approvals within three to five days, allowing you to promptly seize opportunities in the growing Philippine economy.
Contact us now to learn more or apply for a business loan today!
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.
