If you are considering applying for a business loan in the Philippines, then these 9 steps will guide you through the process successfully.
Your loan may be required as capital to start a future business, or your current business may simply require additional funding to grow. There are many purposes for which a business may need a loan, and having a clear understanding of these will help you in the next steps!
Lenders will evaluate you based on the amount you are requesting, and if it is not financially related to what the business requires, they will hesitate to approve the amount you have applied for, if at all. You don’t want to make a mistake so early in the process, nor do you want to go the other way by being too conservative. Have a clear plan and know how much you need to borrow and make sure it’s well thought out.
If you’re starting a business, congratulations – you’re almost there, either way, starting a business or applying for a loan for your current business, lenders will want to evaluate your financial performance. So, get these documents in order and protect yourself from any problems or questions. This should ensure a seamless verification process. This is a vital part of your application when a lender may be in trouble and needs to see about the ability in your repayments.
For a lender, this is a pretty important indicator that you are serious about taking all the right steps to get your business up and running. Although you can no longer register directly, there are many “ready-made companies” that you can still purchase. You also have the option of registering a private company, sole proprietorship or partnership.
Ask friends, family, or even the Google forums when all else fails. Make sure you’re happy with the interest rates and terms your lender of choice is offering you, and that as far as you need to meet their requirements, they’re also ok with yours. Once you’ve compared loan options and are satisfied, it’s time to check if you qualify for a loan!
Checking your credit score is a necessity for this process, and the result of this credit check, i.e. your credit score, is paramount to the decision that will be made when granting you and your business any money. A small amount that you can calculate in advance yourself using online loan repayment calculators. It is absolutely essential that you calculate, understand and feel comfortable with your monthly loan payments.
In addition to the already discussed business plan, you will need the following to satisfy the lender’s requirements for making a decision: tax return documents, both personal and business related; business financial statements; bank statements, both personal and business, and finally; any legal documents related to the business.
Finally, you have ticked all the boxes on the “to do” sheet, you are ready to make an appointment with a loan officer! This is the final stage of preparation. Pack your business plan, finances and research into a package.
You had a meeting and you did everything in this list of steps. Everything went well, and now it remains only to wait! Expect a response on the results of your business loan at any time from a week to a month, depending on the timing of the verification of documents by the selected credit company with which you are dealing.
Good luck getting a business loan!