Small to Medium-sized Enterprises (SMEs) are often heralded as the lifeblood of the Philippine economy. They drive growth, spark innovation, and provide jobs to the unemployed. But let’s lay the cards on the table: it hasn’t always been easy running day-to-day operations and trying to keep the business afloat. One of the biggest hurdles? Access to funding. Whether you plan to invest in real estate, cover payroll, or buy new equipment, finding the right financial solutions provider can make you unlock growth opportunities for your business.
We do acknowledge: Traditional bank loans can sometimes feel like a Sisyphean climb - with their long list of requirements and arduous approval process. Thankfully, a huge number of alternative lending options grew in the past years and stepped in to make life easier for SMEs. These lenders offer everything from micro-loans to big business funding, depending on the entrepreneur’s goals.
Advance PH makes searching doubly easier as we round up the top lending companies in the Philippines for micro-businesses and SMEs. First things first: how did alternative lending companies break into the scene?
Bridging the Gap thru Alternative Lenders
When banks started to crack down on loan requirements, alternative lenders began growing in prominence: they range from fintech startups to well-known financial service providers - all dedicated to making capital borrowing quick, easy, and less bureaucratic for many SMEs. Instead of compiling stacks of paperwork and waiting for several months to have your loan approved, you now can go online and receive flexible loan options and faster approvals.
Part of the welcome developments are government-assisted initiatives supporting SMEs are Pondo sa Pagbabago at Pag-asenso (P3) program; SWINE Lending Program, which provided financial assistance to hog raisers to secure a sustainable supply of pork; I-RESCUE Lending Program, which provided funding for SMEs and cooperatives affected by the COVID-19 pandemic; Landbank Franchising Program, which extended line of credit support to qualified Filipino franchisees and franchisors, among many others.
The above programs may or may not cater to you, as some of them are industry-specific and competition is extremely tough for would-be applicants. Regardless of the nature of your business, operating model or industry, choosing the right business loan requires a lot of reckoning: It requires you to look at each option’s interest rates, reputation, flexibility, and even customer service.
So, how do you pick the right SME loan for you? Let’s take a closer look at some of the top players and what makes them stand out. Consider this as your handy guide so you won’t have to scour the web to make an informed decision. Let’s start:
BPI BanKo (NegosyoKo Loan Program)
SUMMARY:
- Focus on micro-entrepreneurs from underserved rural communities
- Loan from 15K to 500K pesos
- Weekly, bi-monthly, and monthly repayment options
- Approval of 1-5 banking days
A subsidiary of the Bank of the Philippine Islands, BPI BanKo offers the NegosyoKo loan dedicated to support self-employed micro-entrepreneurs looking to grow or stabilize their micro-business. What makes this stand out is their focus on extending help to underserved areas, which ensure that business owners from remote provinces get access to funding when they need them. It can even match the loan terms offered by microfinance companies.
For as low as 15,000 to 500,000 pesos, you can take out a loan with flexible repayment terms - whether weekly, twice a month, or or monthly. The requirements are easy to gather as BPI BanKo only requires a valid ID, utility bill, and Barangay or Mayor’s permit. Approval comes within 1-5 banking days after submission of the complete set of requirements. You can apply to the nearest BPI branch or download their BPI BanKo app.
BPI BanKo magnifies its help to SMEs by not only lending, but also offering guidance and training to help business owners manage their finances better. From a humble sari-sari store to an agri-business, BanKo’s hands-on approach can help SMEs succeed.
UnionBank (GLOBALLINKER)
SUMMARY:
- Focus on digitalizing operations of SMEs in PH
- Loan up to 1 million pesos
- Payable up to 36 months
- No processing fees
Beyond loans, UnionBank GlobalLinker platform is a one-stop shop for SMEs. Its main value proposition is to help SMEs create their online profile and boost their online presence through ecommerce tools, networking opportunities, and more to help their business grow. It also offers competitive loan packages with flexible repayment options to a wide variety of industries.
You can request up to 1 million pesos in additional funds to get your business going- whether it’s to upgrade your equipment/technology, maintain cash flow, or fulfill new orders. On their website, UB GlobalLinker boasts that it has the lowest interest rate on the market and the loan can be paid off over a 36 month term.
Via SeekCap, you can get the best lending options based on the loan type, amount, loan term, income per month, and purpose. It also connects you to non-Unionbank business loans offered by other banks and alternative lending companies that match your situation and need.
Radiowealth Finance
SUMMARY:
- Reliable financing partner of Filipino SMEs for over 60 years
- Loan from 10,000 to 5 million pesos
- Payable from 3 up to 36 months
- Offers cash loan and financing loan
Since 1964, Radiowealth Finance has helped thousands of Filipino entrepreneurs achieve their dreams by becoming a reliable partner of innovative financial solutions. Whether you need to buy new vehicles or equipment, you can borrow and get approved for a loan amount of 10K to 5 million pesos, payable from 3 to 36 months!
Radiowealth specializes in providing capital for machine and technology upgrade like:
- Motorcycle units - to expedite transportation of small yet important documents or packages
- Trucks - to deliver large cargo and goods
- Cars - to simplify mobility for your staff
- Machinery - to automate manual tasks and increase productivity
- Heavy Equipment - to facilitate large-scale, industrial tasks
For easy cash loans, Radiowealth Finance requires collateral in the form of OR/CR as proof of vehicle of ownership and Transfer Certificate of Title (TCT) for real estate property ownership. Since its establishment, it has helped businesses like sari-sari stores, laundry shops, water-refilling stations, storage and logistics companies, and construction firms. Cash loans are recommended for entrepreneurs with valuable assets and who want to get approved for higher loan amounts paid for a longer term and at affordable interest rates.
Radiowealth has an extensive network of 120+ branches where you can process your applications - 22 locations in North Luzon, 32 in South Luzon, 24 in Visayas, 27 in Northern Mindanao, 21 in Eastern Mindanao, and 22 in Southern Mindanao. You can apply wherever you are in the Philippines!
You can also use Radiowealth Finance’s loan calculator to determine the right business loan package for you.
Cebuana Lhuillier MicroLoans
SUMMARY:
- Focus is on financial inclusion and community support
- Loan up to 15 million pesos
- Payable up to 5 years with 7% interest per annum
- Offers loan packages like Happy Loans, Lucky Loans, SME Term Loan, etc.
Cebuana Lhuillier, known for its chain of pawnshop services, has entered the financing industry and expanded to offer microloans for SMEs. With around 2,500 branches nationwide, even in rural areas, they made it easy for entrepreneurs to access funding. Its focus is financial inclusion and community support, which make them endearing for many micro- and SME entrepreneurs across the country.
Under Cebuana’s microloans are Happy Loans and Lucky Loans. Happy Loans are for individuals who need extra cash for their own personal expenses, while Happy Loans are for registered SMEs to help them achieve their business goals. Cebuana Lhuillier also offers Agricultural Loans for farmers who need cash to increase their resources or buy a new piece of land.
Esquire Financing Inc.
SUMMARY:
- One of the most well-known non-bank lending companies in the Philippines
- Loan up to 100 million pesos
- Provides 3 easy steps for loan application
- Offers 3-day credit decision
Esquire Financing lives up to its motto, “Fuel your dreams with us.” For more than 12 years, that’s what it has been doing to countless Filipino entrepreneurs, making it a favorite among SMEs needing significant capital sans the hassle and austerities of traditional banking. In fact, Esquire can provide non-collateral business loans up to a whopping 100 million pesos for qualified registered entities.
From its website, Esquire Financing boasts of its easy 3-step application process, where your loan request can be approved within 3 days.
Here are some of the documentary requirements SME owners need to provide when applying for a loan at Esquire, whether yours is a sole proprietorship, partnership, corporations:
- BIR Certificate of Registration
- SEC Certificate of Incorporation/ Registration
- Latest Articles of Partnership & By-Laws
- Latest General Information Sheet (GIS)
- Secretary’s Certificate (EFI prescribed format: Version- SC.10.2017)
First Circle
SUMMARY:
- FinTech company that offers business line of credit as its main financial product
- Up to 20 million pesos in credit limit
- Interest rates start at 0.99% per month
- Withdraw your credit line on the same business day as the approval day
- Offers rebates for early payments
First Circle was a johnny-come-lately in the SME lending space, but through the use of technology, it pushed itself forward as a game-changer in the industry. Since 2016, it has created a smooth digital experience for all SMEs from loan application to fund release and repayment. First Circle is known for its B2B loans, helping SMEs get access to working capital through services such as invoice financing and purchase order financing, which then evolved into their newest product - Business Credit Line.
SMEs can take advantage of the business credit line as it can support the business toward expansion, fund marketing initiatives, as well as fill cash flow gaps when sudden expenses arise.
Apart from line of credit, First Circle also offers business banking solutions and salary loans for qualified employed individuals needing quick cash.
Blend.PH
SUMMARY:
- Focus is on community-building and promotion borrowing and ethical lending
- Up to 2 million pesos in business loan
- Business loan term up to 36 months
- Interest rates start at 1-8% interest per month
If First Circle mainly offers a business line of credit instead of loans, Blend.Ph introduces a refreshing take on SME lending with its peer-to-peer lending model. It provides a platform where entrepreneurs and individual investors willing to fund new ventures meet. Its application process is fairly straightforward, and capital can be accessed quickly once approved.
Blend.PH offers a blinding variety of loans, but you can request from 100,000 up to 2 million pesos in business loan amount, payable within 12-36 months. It employs what it calls risk-based interest, where interest rates are calculated based on your credit standing (from 1-8% per month).
As an online funding platform, Blend.PH caters to two demographics - borrowers and lenders. Lenders invest their money in various businesses as a way to diversify their portfolio while borrowers use the capital to achieve their business goals. Blend.PH brokers the lender-borrower relationship by matching them based on their needs and requirements.
For business owners, here’s the complete list of requirements when applying for a Blend.PH business loan:
- 2 Valid Government-Issued ID
- Proof of Billing
- Selfie with ID
- 6 Months Bank Statement
- Business Permit/ Mayor’s Permit
- DTI Permit
- Latest 1-year Audited Financial Statement
- Latest Bank Statement (2 months)
- Latest Income Tax Return (ITR)
- Post-Dated Checks with Account Name
On top of business loans, Blend.PH also offers the following competitive loan packages:
- Personal Loan
- Seafarer Loan
- Educational Loan
- Salary Loan
- Franchise Loan
- Fast Loan
- Auto Sangla Loan
Zenith Capital
SUMMARY:
- Supports both SMEs and established enterprises
- Borrow Up to 50 million pesos in business loan
- Get approval in 3-5 business days
- No collateral required
Zenith Capital is one of the most recognizable loan financing companies in the country. Since its incorporation in 2017, it has made borrowing capital accessible to SME business owners across a wide range of industries.
Zenith Capital values family-oriented businesses, acknowledging the fact that most businesses started out as a means to uplift the lives of our own family. It understands the importance of having the right resources to achieve their business goals, which is why Zenith Capital provides a hassle-free way for SMEs to have access to funding with minimal documentation required and approval process that takes less than 5 business days.
Whether you want to reach more customers, upscale your operations, improve staff productivity, fulfill orders, upskill your manpower, and ensure business continuity, you can take out an SME loan from 500 thousand up to 50 million!
To get started with your loan application, prepare the following documents:
- Latest original 3 months bank statement and bank certification
- Copy of Mayor’s and Barangay Business Permit
- Copy of DTI permit
- Photocopy of at least 2 Government-Issued IDs
- 1x1 ID picture
- Picture of the business and/or inventory
- Proof of billing for your business and residence (electricity, water, cable, etc.)
- Hand-drawn sketch of your business and residence location
Investree PH
SUMMARY:
- First peer-to-peer lending platform in the Philippines
- Interest rates are based on credit scoring
- No collateral needed
- Will cease operations in 2025
Since its inception in 2020, Investree PH, a subsidiary of Filinvest Development Corp, is the Philippines’ first crowdfunding platform. Tracing its roots in Indonesia, this fintech platform pioneered the peer-to-peer lending model in the country and has played a pivotal role in connecting micro, small, and medium enterprises (MSMEs) with banks and investors.
Through Investree, crowdfunding is made easy because MSMEs who need access to working capital are matched to the right “crowd” - the right investors. Investree thoroughly analyses the business’ financial health and potential through various data points and a highly transparent credit scoring process. All these make sure that the lender and borrower is the right match, giving both parties peace of mind about the transaction.
However, only recently, Investree announced that it will cease its operations in September 2025.
JK Capital Finance
SUMMARY:
- Focus on reaching underserved market of business owners in marginalised economic segments and remote areas
- Collateral-free loans from 500,000 to 10 million pesos
- Easy access to 9 branches nationwide
- Get approval in 5 days or less
Like the above lending options, JK Capital Finance considers itself goal architects for the millions of Filipino entrepreneurs who wouldn’t otherwise have access to working capital needed to manage or scale their operations. It offers an easy loan application process, acknowledging that many businesses face voluminous requirements when it comes to borrowing. SME owners can apply online, enter their information, pre-qualify in 3 minutes, and receive approval within 5 days. You can also use their online loan calculator to determine the best loan package for you based on factors such as loan amount, loan duration, and interest rate.
Apart from business loans, JK Capital also offers a rediscounting service where business owners can advance their customer’s post dated checks so they can access the fund right away.
Advance PH
SUMMARY:
- Offers invoice financing and payroll financing via revolving line of credit
- Receive up to 20 million pesos in financing
- Provides 3 easy steps for loan application
- Up to 60 days repayment
Only recently, another trusted financial partner for SMEs broke into the scene: Advance PH. Its mission is simple, which is to provide accessible and flexible financial solutions that will help budding and established businesses thrive irrespective of its nature and industry.
One of the unique offerings of Advance PH is its line of credit product, designed to address urgent financial needs. This service allows SMEs to secure their loans quickly, which is important when maintaining smooth operations or seizing opportunities for growth.
Advance PH offers two lending options for your business - invoice financing and payroll financing. Sometimes, pending receivables, especially if they come in significant sums can leave a gap in your finances. Invoice financing allows business owners to get a revolving credit line from Advance PH while waiting for receivables from their customer. This way, you maintain a healthy cash flow and continue running the business smoothly. You can get financing for up to 20 million pesos, payable within 60 days.
Payroll financing, on the other hand, covers your staff salary in cases when you have delayed outstanding receivables. Bear in mind that your team is your most valuable asset. Avoid employee dissatisfaction by taking advantage of Advance’s payroll financing service. Advance will even take care of disbursing staff salary straight to their payroll accounts.
Whichever financing solution you desire, you can apply using their 3 easy steps:
1. Application Submission - Fill out Advance’s application form and submit the required documents
2. Credit Assessment - Based on the submitted form and documents, Advance will assign a credit line that matches your need and qualifications
3. Contract Signing - Sign all loan documents and provide PDCs (for invoice financing) OR payroll and disbursement details (for payroll financing) to get instant access to your credit line.
On top of funding businesses, Advance believes in empowering them through sound financial education. It offers resources to help SME owners make informed financial decisions in every aspect of the business, which ensures sustainable growth. That’s how Advance demonstrates that it is a reliable financial partner committed to their success.
What Lies Ahead for SME Financing?
The future of SME lending in the Philippines looks bright and promising, with technology, competition, and a growing recognition of SMEs’ importance fueling that light. In the coming years, we will see more Fintech companies stepping in yet providing innovative ways to promote new financing models, ones that will be faster, more convenient, and more reliable for business owners.
For Filipino entrepreneurs, this is all good news. More lending options means more access to funding that will pave the way for you to unlock your business’ potential and drive the nation’s economic growth.
Seeing Business Challenges with a Silver Lining
Financial challenges will always be part and parcel of running an SME business, but the top lending companies we highlighted above should serve as your safety net in meeting your future business needs and goals. Whether you seek a microloan or an innovative fintech solution, Filipino entrepreneurs like you now have the tools to transform your dreams into reality.
With the right financial partner, the road ahead may be tough but it’s made incredibly rewarding. After all, these companies aren’t just doling out loans, they invest in the future of the Philippines and in YOU, the SMEs working toward the upliftment of the community and its people. Mabuhay ka!
