What are business loans and how you can apply for one

Today’s businesses must stay vigilant for new challenges and opportunities. Having access to funding can help businesses regularly reassess and recalibrate their goals and positioning to respond to the community’s needs. In this article, we’ll discuss what business loans are, their importance, and how to apply for Metrobank’s business loans.

What are Business Loans?

A business loan is a type of commercial loan issued by a bank to an entrepreneur. It is repaid within a fixed period and with interest rates. A business loan is only used for the company – to cover the costs of starting, operating, or growing a business.

How do Business Loans Work?

Banks evaluate a business’s capability before providing them with a loan, which may be distributed as a lump sum or credit line. The entrepreneur agrees to pay the loaned amount plus fees and interest over a specified period on a fixed amortization schedule.

Business loans may also require collateral -- such as real estate or equipment – that can be repossessed should they fail to repay. Otherwise, for unsecured loans, the business owner accepts personal liability if they fail to repay.

Benefits and Importance of Business Loans

Business loans have enabled numerous businesses to get off the ground or expand. Here are the benefits a business may experience when they take out a business loan:

• Have control over the use of funds
• Improve cash flow management
• Affordable interest rates for SMEs
• Access funding easily and quickly
• No need to share control of your business with investors

How to Apply for a Business Loan in the Philippines

Different banks ask for different requirements to help them evaluate a business’ capability. Metrobank asks owners to provide these requirements when they apply for a business loan in the Philippines:

Personal and Business Identification

• Filled-out Business Loan Application Form
• One valid government-issued photo ID
• Business Registration Certificate or Permit
• Proof of Billing

Financial Documents

• Income Tax Return (ITR) for the last three years
• Audited Financial Statements for the last three years Bank Statements from the last six months

Collateral Documents

• Owner’s Duplicate Copy of Transfer Certificate of Title
• Certificate of Placement
• Tax Declaration
• Vicinity map, lot plan, and Bill of Materials for construction

*Additional documents may be requested.

Metrobank’s Business Loans

Whether you’re starting a new business, expanding your existing business, or even reviving an old one, having enough funds and the right type of financing is crucial for success. Metrobank’s Business loans can help you realize your business goals and maximize your company’s full potential.

Getting a Metrobank business loan is as simple as reaching out to our professional Relationship Managers who can guide you on the type of business loan that will match your specific needs.

Business Loans for Start-Ups

If you’re just starting out looking to turn your business ideas into meaningful ventures, you can look into SME Loans:

Puhunan Loan – financing construction-related projects, facility acquisition, general merchandise trading and product development.

Agri Business Loans – financing options for livestock and grains trading, food processing and for building your agri-related processing and manufacturing facilities.

Franchise Business – financing option to help you acquire franchise packages and jumpstart your pre-operating expenses, such as purchase of equipment and machineries and site construction.

Alternatively, budding entrepreneurs looking to franchise or already with microbusinesses may take advantage of Metrobank’s Personal Loans as capital fund.

Business Loans for Existing Businesses

If you have an existing business and need funding for your operations, a Working Capital Loan may be the answer to your need.

This is an excellent option for businesses who need financing on a recurring but short term basis. It aims to sustain your business’ daily requirements such as gapping of accounts/trade receivables, purchase of supplies and inventory and support operational expenses.

Business Loans for Expanding Businesses

Metrobank business loans offer competitive rates for financing your business needs.

For business expansion, starting a franchise, project finance or capital expenditures like purchase of new machinery/equipment, construction/renovation of commercial property, a viable option would be our Term Loan which has a wide range of financing schemes which may be structured according to your cash flow expectation.

Scale your business with Metrobank

Business loans offer entrepreneurs a way to access funds to start, continue, or grow their business. This type of loan is flexible, affordable, and easy to access. It offers numerous benefits that, when used correctly, can boost a company’s success.

Regardless of what you need the funding for, Metrobank’s business loans are a good way for you to get your business started. Let us be your partners in growing your business. Apply for a Metrobank Business Loan today!