Business Loans Guides

Online Loans in the Philippines: What SMEs Need to Know

Any aspiring entrepreneur today can start a business just by creating a page on social media or using an e-commerce platform. Due to the convenience of digital platforms, the number of registered online companies in the Philippines increased from 1,700 in January to March 2020 to 75,000 by the end of the year. 

While starting online helps entrepreneurs save on costs, one thing remains certain: small- and medium-sized enterprises (SMEs) still need adequate funding to scale every aspect of their business—inventory, logistics, marketing, customer service, and many more.

Banks are equipped to grant loans to SMEs, but stringent requirements and non-flexible terms make it difficult for budding entrepreneurs to secure funding. In fact, 77% of SMEs in the Philippines have been unable to secure any or sufficient funding on at least one or more occasions over the last five years.

This is where online loans come into play. Online lending companies typically help SMEs secure funding through digital channels. Compared to conventional bank loans, online loans are more accessible as they have fewer requirements and faster approval. They’re ideal for SMEs needing emergency funds or having difficulty getting approval for bank loans.

If you need more funding to scale your business, this infographic can help you learn about online loans in the Philippines and how to apply for them.

Online Loans in the Philippines: What SMEs Need to Know

Online Lender Legitimacy and Regulation

Online lending companies in the Philippines must be registered with and licensed by the Securities and Exchange Commission (SEC) instead of the Bangko Sentral ng Pilipinas (BSP). 

They’re required to obtain a Certificate of Authority (CoA) before they can offer loans. To get a CoA, lenders should fulfill the requirements in forming an ordinary stock corporation and have a minimum paid-up capital of ₱1 million.

Once registered with the SEC, online lending companies should comply with different regulations, such as the Corporation Code, the Lending Company Regulation Act, and the Data Privacy Act, to keep customer data safe and secure.

If an online lending company fails to comply with these laws or commits harassment, cyber libel, and unfair debt collection, the SEC and other government agencies will investigate the claim. It’s required to cooperate during the investigation. The online lending company would have to give up its licenses and pay exorbitant penalties if found guilty. 

Even if an online lending company is registered with the SEC, you should still conduct thorough research before transacting with one. You can read the terms and conditions, look for customer reviews, and check its website and repayment schemes. If a company makes an offer that’s too good to be true, that’s usually a sign that it’s not as legitimate as you think. 

You can also check this list of SEC-registered online lending companies to see if the lender you’re dealing with is legitimate.

Business and Documentary Requirements

Online loan requirements vary per lender, but below are some that they typically ask for: 

  • Online application form
  • Government IDs of business owner/s
  • Securities and Exchange Commission (SEC) or Department of Trade and Industry (DTI) registration
  • Bureau of Internal Revenue (BIR) registration
  • Proof of billing
  • Latest payslips for employed individuals or bank statements for self-employed individuals
  • Certificate of Employment (CoE) for employed individuals or Income Tax Return (ITR) for self-employed individuals
  • General Information Sheet (GIS) for corporations

For more specific requirements, you can check the website of the online lending company you plan to borrow from or directly contact them via phone or email. Some online lenders require borrowers to prove their age, place of residence, and properties such as cars and tech devices.

Since these companies are available online, you can submit soft copies of your documents anytime via their app or website. This helps SME owners save time and costs from visiting in person when applying for loans.

Application Process

Applying for an online loan is usually fast and easy. Online lending companies can process and approve a loan in three to seven business days, which is faster compared to banks that take two to three months. Most online lenders also have relationship managers and customer support teams to assist you throughout the process.

While the application process is different per lender, here are the basic steps that you need to accomplish:

  • Fill out the online form available on the lender’s website.
  • Upload the requirements.
  • Wait for the lender to contact you.
  • Wait for your loan disbursement.

Online Loan Terms

Before applying for an online, you need to consider some factors and align them with your business needs. Some of these include:

1. Loan duration

Online loans are ideal for SMEs that need quick or short-term funding. Online lenders allow SMEs to repay their loans within two weeks or a year. Some also offer biweekly or monthly repayment schemes where the borrower pays both interest and principal.

SMEs that need short-term funding can also save on costs with online loans. Banks typically charge extra for early repayment or loan terminations to compensate for the interest they would’ve collected from you until your loan matures. These fees are typically 4–8% of your current outstanding balance.

2. Loan amount

Online lenders have different caps for their loans, but most offer somewhere between ₱50,000 and ₱10 million. This is in stark contrast to banks, which offer around ₱1 million to ₱20 million in loan amounts.

The loan amount of online lenders may be small, but it’s perfect for SMEs that need quick funding and can repay within a few weeks or months.

3. Interest rates and processing fees

When it comes to interest and processing fees, banks are more modest because they have access to cheaper sources of funds, such as customer deposits. They can also maintain risks at lower levels. Their monthly interest rates are around 0.50% to 1.5%, with processing fees at 0.75% of the loan amount.

Meanwhile, online lending companies offer monthly interest rates of around 1.99% to 4% and charge processing fees of 1.99% of the loan amount. Some online lending companies may charge other fees, which may not be published on their website or communicated to borrowers at the onset.

When getting an online loan, ask your relationship manager or customer support representative about these fees to manage your financial expectations efficiently.

4. Minimum number of years in operation

Banks often grant loans to businesses that have been in operation for at least two to three years, with one year of profitable operations. Meanwhile, many online lending companies grant loans to those still in their first year of operations. This is ideal for SMEs that have seen growth in a short time and need funding to continue doing so.

What to Do if You’re Scammed or Harassed by an Illegal Online Lender

Online lending in the Philippines can be a bit of a minefield, as some illegal lenders are becoming smarter by the day, posing as legitimate companies. If you think you’re being scammed or harassed by an online lender, follow the steps below:

  • If the lender has a CoA to operate, file a complaint with the SEC.
  • Fill out the Complaint Form.
  • Attach all relevant documents or evidence to support your complaint.
  • Submit one Complaint Form per respondent company. 
  • Provide a valid government-issued ID.
  • Show evidence that you’ve exhausted all remedies against the company before filing your complaint.
  • If you have a complaint against a company without a CoA, you can email the Enforcement and Investor Protection Department at
  • If your data privacy rights were violated, contact the following agencies:
    1. National Privacy Commission (NPC) –
    2. Philippine National Police (PNP) Anti-Cybercrime Group – and
    3. National Bureau of Investigation (NBI) Cybercrime Division –
    4. Department of Justice (DOJ) Office of Cybercrime –

Scale Your Business with an Online Loan Today

Online loans are easy solutions for SMEs that need quick, short-term funding. Not only will online loans help SMEs scale their business, but loans will also help build their credit score and improve their financial standing in the long run.

Naturally, this will only be possible if you work with a legitimate online lending company. Before getting an online loan, conduct your research so that you won’t fall victim to scammers. 

If you’re ready to secure an online loan, you can borrow from a reliable online lending company in the Philippines like JK Capital. We offer instant financial solutions to SMEs planning to go beyond their horizons. Check out our services to learn about our requirements and application process, or fill out our contact form for inquiries. 

Business Loans

Business Loan vs. Consumer Loan: Differences and Similarities

Many up-and-coming entrepreneurs apply for consumer loans to generate capital for their businesses since they are relatively easy to qualify for and quickly acquired. Although there is nothing wrong with using a personal loan for business purposes, it does have a few drawbacks. 

If you’re a small business owner and wondering, “when do we consider using personal loans for business?” you’ve come to the right place. In this article, we’ll discuss the differences between a business loan versus a consumer loan and explore the advantages of each.

What is the Difference Between a Consumer Loan and a Business Loan?

The primary purpose of a business loan is to fund business needs. They’re intended for purchasing revenue-generating investments or funding your business’s day-to-day operations. Business loans are also used for acquisitions, renovations, supply orders, payroll, and more.

Meanwhile, consumer loans are more flexible as they fund personal and business needs. They’re generally easier to obtain because lenders will only be looking at your own finances for approval. The most common examples of consumer loans are personal loans, auto loans, and home loans.

Now that you know the difference between a consumer loan and a business loan, let’s find out which one fits your needs best.

Business Loan vs. Consumer Loan

Exploring the topic of differences between business and consumer loans will help you paint a clear picture of the benefits and drawbacks each option may offer. For example, if you prefer a particular timeline for your loan payment, you can explore the terms of each loan.

Nowadays, you can get both short- and long-term consumer and business loans, which provide you with the opportunities below:

Long term loans

  • Lower monthly amortization
  • Larger loan amount
  • Lower Interest rates

Short term loans

  • Shorter time incurring interest
  • Easier to acquire
  • May help increase credit score

Before choosing a loan type, it is best to consider all the factors in your decision. These may include your financial history, business credit score, personal credit score, and long-term business objectives. These factors will help you understand which type of loan you qualify for and what works best for your situation.

Business Loans

1. Eligibility requirements

Most lenders will require a small business to have a stable and predictable cash flow to qualify for SME loans. In addition, they may require more paperwork such as financial statements, business plans, licenses, permits, etc.

2. Loan terms

Depending on your industry, business loans can be repaid over a more extended period, ranging from two to 20 years.

3. Loan amount

A business loan can provide a more significant loan amount compared to a consumer loan. For example, a small business loan may reach up to ₱10,000,000.

4. Interest rate

A business loan’s approval process is more thorough, giving lenders more confidence to provide lower interest rates than consumer loans.

Advantages of Business Loans

  • Separate finances – A business loan will aid personal protection and tax duties by separating your business finances from your personal finances.
  • Limited liability – In case of default or inability to pay, your liability with a business loan may be more limited compared to a personal loan.
  • Business credit – Paying back your business loans on time will help increase your business credit score. This allows you to get higher loan amounts and better terms for future loans.

Risks of Business Loans

  • Personal guarantee – Some business loans may require a personal guarantee to reduce the lender’s risk.
  • Loss of business assets – You may lose business assets such as equipment, real estate, and receivables if you default on a secured business loan.

Consumer Loans

1. Eligibility requirements

A consumer loan typically requires applicants to have good credit, a stable source of income, and a good debt-to-income ratio. Applicants who do not have good credit may take out a secured loan that requires collateral instead.

2. Loan terms

Generally, consumer loans have a short payment term, ranging from a few months to years.

3. Loan amount

Consumer loan amounts tend to be smaller than business loans and rarely exceed ₱3,000,000. You will want to consider business loans if you need a more significant loan amount.

4. Interest rate

A consumer loan usually has higher interest rates compared to a business loan. As a result, it is considered riskier for lenders.

Advantages of Consumer Loans

  • Easy approval – Consumer loans have a short approval process, giving you quick access to funding. These loans require only a few paperwork and documentation from applicants.
  • Collateral workaround  Some small consumer loans may be unsecured, allowing you to withdraw a loan without collateral.

Risks of Consumer Loans

  • Personal risk – Consumer loans will be tied to your personal finances, putting them on the line if you default.
  • Ability to borrow – Lenders will not approve your loan if your debt-to-income ratio is not good. This may cause a problem if you incur outstanding debt and need another loan later on.

Get That Funding

Business loans and consumer loans each have their advantages and drawbacks. In the end, there is no one-size-fits-all solution for your funding requirements. Instead, consider all the factors and research carefully to determine what loan type best fits your business needs. 

If you’re looking for companies offering business loans with fast approval and minimal requirements, look no further than JK Capital. JK Capital provides small business loans that you can use to finance your expansion, working capital, inventory purchases, and other business-related expenses. 

Contact us today to secure business funding in 7 days or less.  

Business Loans

5 Types of Collateral You Can Use to Secure a Business Loan

Small businesses often start out with poor credit scores, which affects their ability to take out a business loan. However, you can boost your chances of getting approved for a loan through a collateral loan. But, what is a collateral loan?

A collateral loan is a secured business loan where you pledge assets as repayment to improve your creditworthiness. This will serve as the lender’s safety net if you, as a borrower, default on your loan and cannot pay.

5 Types of Collateral for a Business Loan 

If you need business funding to finance your day-to-day operations, expansion, or a piece of equipment, below are five types of collateral you can use to secure a business loan. 

1. Real Estate

A real estate or home equity collateral is any property you own, including your family home, lots, buildings, or commercial lands. This collateral is common since home equity is easily accessible to most business owners. It’s also ideal for lenders as it has a high value with low depreciation risks.

If you default on payments, lenders reserve the right to take ownership of your real estate and sell them to recover the losses quickly. Therefore, you’ll need to assess your real estate properties and choose one that holds the least value in your life but can back up the amount you’re trying to loan.

2. Business Equipment

If you’re planning to purchase business equipment using a loan, that piece of equipment can serve as your collateral. This is relatively low-risk, especially for construction or manufacturing companies. You can also put up your printers, computers, or copiers to back up payments if you default. 

Although this is less risky than putting up your family home as collateral, you may only lend a small amount as lenders will take more depreciation risk. They’ll likely ask for your equipment’s receipt to assess the value, so check the depreciation of the equipment you’re putting up as collateral.

3. Inventory

This collateral may only work if you’re a product-based company like retail or e-commerce shops. You can use the items in your inventory as backup payments if you fail to hold your end of the bargain. However, you’ll need to ensure that your inventory can back up your lending amount. 

Lenders may ask a third-party auditor to assess the value of your inventory, especially if it is hard to sell. Other considerations also need to be taken, like liquidation value and future depreciation. 

This is risky collateral on your end as it may directly affect your revenue stream and not earn from those inventory losses. The drop in sales may negatively impact your other debts and expenses, so evaluate all your financing options before taking out an inventory loan.

4. Invoices

Unpaid invoices can affect your cash flow, which may cause issues in paying for your expenses and the like. You can put the invoices up as collateral to get cash upfront without waiting for a long period. It’s a good option for borrowers with a low credit score since viability will be based on the worth of outstanding invoices. 

You can sell your unpaid invoices to a factoring company and receive around 80% to 95% of your invoice value. However, you’ll need to pay a fee of 0.50%5% of your invoice value, so you may earn less than you would have if you collected the invoices yourself. 

With that said, invoice financing is a better option than inventory loans since it gives you a flexible and secure payment scheme while ensuring you have other revenue sources.

5. Cash

Traditional lenders, such as banks favor this collateral as it’s the most liquid asset a person can have. On top of this, they won’t have to go through the trouble of selling a physical asset just to recover their losses.

The collateral for a business loan comes from extra cash from your bank accounts, whether a business or personal account, to back up your payments when you default. With this, you can take advantage of low interest rates and high loan amounts, corresponding to the money you have in your bank.

Collateral Business Loans FAQs

  • How much collateral is needed for a business loan? 

As a rule of thumb, any assets you’ll pledge as collateral should at least have the same or even surpass the worth of the loan you want to borrow. However, auditors will still have to assess their value. They’ll most likely appraise the collateral’s value by 80%90% of the loan amount to consider other risk factors. So, as long as your collateral does not go below the loaning amount, you can get a business loan.

  • How do I get a business loan without collateral? 

You may need to get an unsecured business loan instead, which you can typically get from online lenders, banks, or credit unions.

Keep in mind that traditional lenders like banks require good business and personal credit scores, so you may have trouble getting an unsecured loan if you have poor credit. In this case, you can seek financial assistance from an online lender like JK Capital which offers non-collateral business loans with fast approval and minimal requirements.  

  • Does collateral improve my approval odds? 

While pledging assets can approve your odds, you’ll need to match the value of your collateral to your loan amount to improve the terms of your loan. You’ll also need to consider the 5 Cs of creditcapacity, capital, collateral, condition, and characterto determine your odds of approval.

Finance Your Business Wisely

It may be difficult to get loan approval with a low credit score, but it’s not entirely impossible—you can pledge collateral to improve your chances. However, you’ll need to carefully deliberate when choosing an asset to pledge as you’ll need to consider your risk factors and the value it will hold to the lenders. 

If you’re not willing to use collateral, you can always look for lending companies that offer unsecured loans like JK Capital. Check out our no-collateral business loans to find out more.

Business Loans

5 Government Loans for Small Businesses in the Philippines

With the COVID-19 Assistance to Restart Enterprises (CARES) program ending last January 31, 2022, the number of government loans small businesses can apply for shrinks. This can be worrisome, considering how much COVID-19 has affected small businesses in the Philippines

All is not lost, however. There are still several government assistance programs for small businesses in the Philippines recovering from the pandemic. The following section will provide a rundown of everything you need to know about government loans you may apply for. 

5 Government Loans for Small Businesses in the Philippines

  1. Pondo sa Pagbabago at Pag-Asenso (P3)
  2. RISE UP Turismo
  3. Helping the Economy Recover through OFW Enterprise Startups (HEROES)
  4. MSME Credit Guarantee Program (MCGP)
  5. Sustaining Trade Access to Primary Food and Link to Enterprises (STAPLES)

These government loans for small businesses in the Philippines are offered for various industries. Below is information about the five programs, their eligibility, terms, and requirements.  


Pondo sa Pagbabago at Pag-Asenso (P3)

Informal lending is a common practice among micro-entrepreneurs. One of the most financially harmful is known as “5-6” lending, where borrowers have to pay up to 20% interest on their loan every month. 

To prevent such practices and provide micro-entrepreneurs with convenient financing options, the government introduced the Pondo sa Pagbabago at Pag-asenso (P3) program. 

Who are eligible?

The P3 program was designed for micro-entrepreneurs who had an existing business before the pandemic. These include market vendors, sari-sari store owners, and stall owners, to name a few.

What are the terms?

  • Loanable amount: P5,000 – P200,000 (depending on the size of your business and ability to pay)
  • Interest rate: 2.5% monthly 
  • Loan term: If you intend to loan below P50,000, the term is capped at 18 months; for loans over P50,000, the maximum term is 30 months.  
  • Grace period: 6 months

What are the documentary requirements? 

  • Accomplished P3 loan application 
  • Proof of legitimate business running for at least one year
  • Proof of one year of residence
  • Valid government ID
  • Barangay clearance
  • If you intend to loan more than P50,000, you will need a DTI Business Name Registration Certificate 

To learn more about the P3 program and to apply, visit the DTI P3 website.


RISE UP Turismo

It’s no surprise that tourism was one of the most vulnerable sectors due to local and global lockdowns during the pandemic. As a way to stimulate recovery and growth in the sector, the Small Business Corporation (SB Corp) created the RISE UP Turismo Loan, which follows up on the CARES for Tourism Rehabilitation and Vitalization of Enterprises and Livelihood (CARES for TRAVEL) that launched during the height of the pandemic. 

This program is targeted toward businesses in the tourism sector that lost revenues over the pandemic. The loan’s coverage includes all tourism-related enterprises, whether DOT-accredited or not, such as transportation, events organizing, and souvenir shops, among others.

Who are eligible?

Three main business groups are eligible for the program: primary tourism enterprises (including hotels, resorts, and tour agencies); secondary tourism enterprises (including restaurants and tourist shops), and tourism support services. 

What are the terms?

There are two types of loans under the RISE UP Turismo Loan: the SME TURISMO Loan and the Micro TURISMO Loan, each with minor differences.

For the SME TURISMO Loan:

  • Loanable amount: Maximum of P5 million
  • Basis of loan amount: Possibly up to 15% of prior years’ sales; loans over P3 million will be based on your BIR-filed financial statements 
  • Interest rate: A one-time service charge ranging from 4% to 8%, depending on your repayment term.
  • Loan term: Payable monthly for up to 4 years
  • Grace period: Up to half of the loan term, on principal only

For the Micro TURISMO Loan:

  • Loanable amount: Maximum of P300,000 per borrower 
  • Basis of loan amount: Up to 20% of your existing business assets 
  • Interest rate: A one-time service charge ranging from 4% to 8%, depending on your repayment term.
  • Loan term: Payable monthly for up to 4 years 
  • Grace period: Up to half of the loan term on principal only  

What are the documentary requirements?

Both loan types will require the following documents:

  • Government-issued ID
  • Barangay permit for loans not more than P100,000
  • BMBE Certificate or Mayor’s Permit for loans more than P100,000
  • Photos and a 1-minute video of business operations and assets
  • Corporate documents (if applicable)
  • At least one year of business operation, as evidenced by business permits 

To register and view the complete list of eligible enterprises, visit the RISE UP Turismo Loan page of the SB Corp website.


Helping the Economy Recover through OFW Enterprise Startups (HEROES)

Businesses worldwide were forced to shut their doors amid the pandemic, meaning many overseas Filipino workers lost their jobs. A Philippine Statistics Authority survey found that the OFW population declined by almost 19% in 2020. 

To help unemployed, repatriated OFWs, the government created the Helping the Economy Recover Thru OFW Enterprise Start-Ups program. This gives OFWs the chance to start their own business and rebuild their lives in their home country.

Who are eligible?

Land-based and non-professional OFWs who returned home due to the layoffs during the COVID-19 pandemic may apply for this loan. 

What are the terms?

  • Loanable amount: Repatriated OFWs may borrow from P30,000 up to P100,000
  • Interest rate: No interest nor collateral required
  • Grace period: Up to 12 months

What are the documentary requirements?

  • Certificate of Completion of Training issued by the Philippine Trade Training Center (PTTC)
  • Scanned copy of passport
  • Video presentation (You will be guided on how to accomplish this during PTTC training)
  • Business Model Canvass (Required for loan amounts exceeding P50,000)

To learn more about the program and the free PTTC one-day online training, visit the HEROES page of the Small Business Corporation website. 


MSME Credit Guarantee Program (MCGP)

Micro, small and medium enterprises (MSMEs) struggling with limited working capital after the pandemic may consider getting bank loans. However, not all MSMEs are capable of paying these back, limiting the loans they can apply for. 

This is why the Philippine Guarantee Corporation partnered with various banks to create the MSME Credit Guarantee Program to help MSMEs apply for loans that might have become out of their reach. 

Who are eligible?

This program was created for micro to medium-sized enterprise owners who have been affected by the COVID-19 pandemic. 

What are the terms?

  • Loanable amount: Maximum of P50 million per borrower; Loans exceeding that amount will be subject to the approval of PhilGuarantee based on the guidelines for their Regular Credit Guarantee Program. 
  • Loan term: 1 to 5 years
  • Interest rate: Interest rates, collaterals, and securities will depend on the lending bank or financial institution.
  • Guarantee limit: 50% of the principal loan amount
  • Guarantee term: 1 year 
  • Additional fees: Each amendment will cost P5,000

What are the documentary requirements?

The requirements will vary depending on where you apply for this loan. Contact a PhilGuarantee-partnered bank near you to inquire about the necessary application documents. 

You can find out more about the program on the official PhilGuarantee website.  


Sustaining Trade Access to Primary Food and Link to Enterprises (STAPLES)

The food business sector not only suffered from the lack of revenue due to lockdowns but also because of the increased expenses of incorporating social distancing and sanitation measures. 

To assist affected food businesses and food supply chains, the government created Sustaining Trade Access to Primary Food and Link to Enterprises (STAPLES) to help small businesses within the sector replenish their working capital and financially recover.

Who are eligible?

  • MSMEs working in the retail food sector 
  • MSMEs or applicants with no negative payment or unresolved major negative credit history. 
  • Part of the food supply chain of an SBCorp-accredited FMCG food manufacturer
  • Your business must be 100% Filipino owned or, if your business has foreign ownership, at least 60% Filipino owned. 

What are the terms?

The amount you can borrow will depend on your annual sales. The terms, such as repayment and service fees, will also depend on the size of your business.

For small sari-sari store owners:

  • Minimum annual sale: P500,000
  • Loan amount: 2% of annual sales (Minimum of P10,000)
  • Repayment Term: 3 months
  • Service fee: 3%

For big sari-sari stores, mini groceries, and convenience stores:

  • Minimum annual sale: P2 million
  • Loan amount: 2.25% of annual sales (Minimum of P45,000)
  • Repayment term: 4 months
  • Service fee: 3%

For medium-sized grocery, convenience stores, or dealers and small distributors:

  • Minimum annual sale: P20 million
  • Loan amount: 2.5% of annual sales (Minimum of P500,000; maximum of P5 million)
  • Repayment term: 6 or 12 months
  • Service fee: 3% if 6-month repayment, 6% if 12-month repayment

What are the documentary requirements?

Depending on the size of your business, you will need a different set of requirements. 

Requirements for small sari-sari store owners:

  • Valid ID
  • Bank or digital bank account
  • Barangay business permit for 2019 or 2020
  • Two photos of business signage, inventories, or fixed assets (submit in JPEG format)

Requirements for big sari-sari stores, mini groceries, and convenience stores:

  • Valid ID
  • Bank or digital bank account
  • Mayor’s permit for 2019 or 2020
  • Two photos of business signage, inventories, or fixed assets (submit in JPEG format)

Requirements for medium-sized grocery, convenience stores, or dealers and small distributors:

  • Valid ID 
  • Bank or digital bank account
  • Mayor’s permit for either 2018, 2019, or 2020
  • If your intended loan exceeds P1 million, you must submit the latest BIR-filed Balance Sheet to certify that your business is not a large enterprise.

To learn more about the loan program and how to register, visit the STAPLES page on the Small Business Corporation website. 

Choose the Right Loan for You 

If your small business is struggling to get back on its feet after the pandemic or any other crisis, applying for financial aid can be a big help. These five government assistance programs for small businesses in the Philippines can be just what you need to recover what you lost over the pandemic. 

Of course, it’s always important to do your research and consider other financers before applying for a business loan. The government isn’t the only place you can go to for financial help.

Check out JK Capital, which provides loans for small businesses to help you get back on your feet and succeed in the new normal. 

Business Loans Guides

How to Get a Business Loan in the Philippines: A 5-Step Guide

Funding is one of the most important things to consider for a business owner. Many entrepreneurs are hesitant to take out a loan for many reasons. Some don’t want to go through the hassle of application, while others are afraid of building up a debt they can’t afford to pay.

Instead, they use their own money to fund their operations, which can be personally detrimental if your business fails. 

However, applying for a loan to secure business funding is necessary to avoid risking your finances. The following section provides a list of loan requirements and a five-step guide on how to apply for a business loan in the Philippines.

Common Business Loan Requirements

Like with any business-related venture, there are requirements that you will need to submit before receiving a loan. Below is a list of some of the common business loan application requirements. 

  1. Government-issued ID
  2. Signed and completed loan application form
  3. Company profile or business background
  4. Business permit or DTI/SEC registration certificate
  5. BIR Certificate of Registration
  6. Latest audited financial statements
  7. List of major suppliers and customers with details about dealings
  8. Proof of business billing address (Mayor’s Permit, Lease Contract, or Utility Bills)

How to Apply for A Business Loan

  1. Decide how much money you need to borrow
  2. Assess your eligibility
  3. Determine how much and how regularly you can make payments
  4. Choose the best type of loan for your business
  5. Compare lenders

There are several types of business loans in the Philippines, but what are the steps to apply for one? This section is a quick rundown of the five steps you need to take.

1. Decide how much money you need to borrow

An essential step for any loan application is determining how much money you need to borrow. Applying for too high an amount can make the lender doubt your ability to repay, while an amount too small can immediately get your loan application rejected. 

It sounds counterintuitive for lenders to prioritize people who borrow a bigger sum, but too little of a loan isn’t generally worth it for banks since they won’t profit from it. Instead, they would approve someone who needs to borrow more, but still not to the point where it’s impossible for them to repay. 

You need to do some math to see how much money you need from the lender while finding a middle ground to convince them to approve your loan.

2. Assess your eligibility

When applying for any loan, eligibility plays a crucial role. Your credit score, business history, and cash flow are the three primary factors that will determine your chances of getting approved. 

Credit scores represent your creditworthiness, showing the lender that you are trustworthy enough to repay the loan. 

Business history represents the growth of your enterprise over time. Lending companies will look at this to determine if the business is profitable enough, is relevant to the market, and has potential to grow. Typically, a company needs to have one to two years of operations to qualify for a loan.

Lastly, cash flow is how much money your business is earning. Many lenders will require a minimum annual revenue, so it’s best to check your potential lenders’ requirements.

3. Determine how much and how regularly you can make payments

As previously mentioned, the amount of money your business earns annually affects your chances of loan approval. Some lenders require daily repayments, so it is crucial to factor that in. Determine how much you could afford to pay monthly or daily. Your business should aim to have at least 1.25 times your total expenses, including your repayment. 

4. Choose the best loan type for your business

Small and medium enterprises (SMEs) can apply for various loans, such as the following:

  • Term loans require you to pay monthly, with a fixed interest rate during the specified period. Traditional banks offer this kind of loan and can come with or without collateral. 
  • Short-term loans are for businesses that need financial support for short-term periods. They are payable within a year, and some lenders offer them online. 
  • Equipment loans are financing for machines and other equipment, such as vehicles, printers, etc. The equipment can act as collateral for the loan, meaning the lender can repossess it if you miss your payments. 
  • Invoice financing involves the lender using your account receivables as security for businesses that invoice clients. It is a reliable solution for short-term cash flow issues

5. Compare lenders

It’s always important not to rush any business decision. Take the time to analyze and research which lending company will work best for your business in both the long- and short-term. Inquire with multiple lenders, then compare the loan terms offered by each so that you can select one with the most favorable terms.

Apply for a Business Loan Today

As an entrepreneur, taking out a loan is a strategic and necessary move for the success of your business. This is funding you need to grow, whether it is to finance your day-to-day operations, equipment, or expansion. As such, you shouldn’t hesitate to apply for one because it’ll reap the rewards for you.

If you’re looking to apply for a business loan, look no further than JK Capital. We offer quick business loans with no collateral for SMEs. Apply online today and get the funding you need fast. 

Business Loans

Why Borrow from an Online Lending Company in the Philippines?

Adequate funding is the lifeblood of a growing business. However, it’s also one of the biggest hurdles business owners need to overcome.

Small companies, in particular, find it more challenging to get funding. Their loan applications may not get approved because banks or lenders see them as risky borrowers. They may be rejected due to poor credit history, poor business performance, or not being in the business long enough to build credibility.

If you’re seeking alternative options after being rejected for your bank loan, you might want to consider non-traditional funding such as an online lending company. Online lending companies offer more flexible terms and requirements and can be the key to securing the funding your small business needs.

Let this article guide you on why you should borrow from an online lending company in the Philippines. 

What are Online Loans?

Online loans are considered non-traditional loans provided by a private lender through digital channels. Those who need funding but fail to secure a conventional bank loan, such as small business owners, typically apply from non-banking financial institutions. 

For an online loan lender to legitimately operate in the Philippines, they must first register with the Securities and Exchange Commission (SEC) and the Department of Trade and Industry (DTI). Their registration protects borrowers against scams and fraud. 

Besides registration, legitimate lending companies must also comply with the Corporation Code, Lending Company Regulation Act, and other regulations.

Advantages of Online Loans

There is more to online loans than being alternatives to traditional banking loans. Online lending companies can provide a myriad of benefits for your small business, such as the following.

1. Fewer requirements

Online business loans in the Philippines have become more prominent due to their accessibility. Simply sending a clear photo of your government ID and other requirements are enough to qualify you to borrow. 

Additionally, most of them don’t require collateral. This means there’s no risk of you losing an asset when you default on the loan. At the most, online loan lenders may require you to present a certificate of employment if you’re looking to borrow high sums of money.

2. No credit requirement

Small-time entrepreneurs who haven’t built up a credible credit history yet may find it challenging to get approved by banks for small business loans. In contrast, online lenders are often more lenient regarding credit history. 

They typically don’t scrutinize borrowers’ credit scores or history. Instead, they consider other factors like occupation and education to determine approval, making online loans more viable for small business owners with poor credit history.

3. Fast approval

The online loan process is quicker and less strict than traditional loan systems. Some online lenders respond to your application within 24 hours of submission. Although the realistic timeline for approval is from 2 to 3 business days, it’s still substantially faster than most banks.

Additionally, online loan lenders allow you to apply anytime, so small business owners can apply for funding immediately in case of an emergency.

4. Offer competitive rates

The lack of physical office space is one of the biggest reasons online lenders can offer competitive rates. Without a brick-and-mortar location to maintain, overhead fees are likely less or non-existent for some of them. This also enables them to provide more favorable loan terms.

5. Deposit bank account is not required

Online lending companies in the Philippines typically don’t require the borrower to have a deposit bank account, as loan proceeds can be disbursed through partner remittance centers. However, some lenders have the right to ask for a nominated bank account from the borrower for whatever reason.

6. More convenient

The application process of online lenders is typically more streamlined than banks because it is digital. All you have to do is submit the requirements through the lender’s website or via email, then wait for their response.

FAQs on Online Lending Companies

Are online loans legitimate?

Yes, online loans are legitimate. Before lenders can conduct business with potential borrowers, they’re required by law to register with the proper authorities like the DTI and SEC.

How do you pay for online loans?

Online loans can be paid through the same partner remittance centers in which the lenders disbursed the borrowed sum.

What happens to unpaid loans in the Philippines?

The offender of the unpaid loans may be subjected to late payment fees that can range from P200 to P600 monthly, or 7 to 10% of the loan amount, depending on which is higher. Additionally, a small business owner’s property may be subjected to repossession or foreclosure, depending on the loan’s terms.

Flexible Funding from Online Lending Companies

Online lenders aren’t just a quick fix for those who need cash flow injection. This non-traditional loan system can be advantageous for small businesses as it provides more lenient terms, reasonable rates, and fewer requirements to secure funding. 

If you need immediate financial solutions for your small business, consider JK Capital. Serving Philippine-based small companies since 2014, JK Capital provides quick, collateral-free loans to fund your business growth. For further inquiries about our services, contact us today. All of us are more than happy to help.

Business Advice Business Loans

Top Reasons Your Business Loan was Rejected (And What You Can Do About Them)

Every entrepreneur struggles with finding the right capital. After all, an idea is nothing without the means to implement it. Funding is essential to starting and growing a small business, so it can be quite a blow when your loan application gets rejected.

But don’t worry, rejection isn’t the end. You can always ask your lender to reconsider or look for another financing company.

Common Reasons Business Loans are Rejected

Here are seven common reasons why business loans are rejected and strategies to recover from them.

1. Poor credit score

Did you know that poor credit scores are one of the most common reasons for loan rejection? Even if your company has been in business for a while, your credit score is still the ultimate basis of how reliable you are in paying back your borrowed amount.

What you can do: If you’ve been turned down because of poor credit, the easy but non-compromising fix is studying what contributes to a high business or individual credit score. From there, you can proactively start working toward a better credit number.

2. Weak cash flow

Financing companies want to know if your business has enough cash on hand to fulfill monthly loan payments and rent, wages, inventory, and other expenses. They want to guarantee that you have the adequate cash flow to meet your expenditures, pay down the debt, and leave some money as a safety net in the bank.

Even if you are profitable, many small companies struggle with liquidity. This may be due to advanced payments to suppliers before getting revenue for their goods or services.

What you can do: Inconsistent cash flows, narrow profit margins, or regular seasonal downturns can be a red flag to lenders. So, look for strategies to cut costs or increase sales before requesting a loan.

As a rule of thumb, you should assess your financial management abilities. Use accounting software to produce cash flow forecasts and estimates quickly. Afterward, track your cash flow every week to be on top of things. Don’t allow accounts receivable to go over 60 days past due. 

3. Insufficient collateral

Many conventional lenders demand you put up collateral—an asset you own and have pledged to a financing provider to act as their safety net. If you don’t pay for your debt, your lender will take ownership of your asset. Borrowers who don’t put up collateral are considered bigger risks than those who do.

What you can do: If this is the case, consider unsecured loans as an alternate means of finance. At JK Capital, you don’t need collateral to be considered for a loan, so you won’t lose your personal property even if you default. Even better? JK Capital can handle your application in only five working days.

4. Not enough time in business

If your company is still in its early stages, your credit and cash flow histories may be insufficient to secure a loan. It’s worth noting that merchants don’t always immediately record your transactions to the commercial credit bureaus. When you open an account with a different supplier or a new vendor, be sure that they register your payments so that your company can have a positive credit history.

What you can do: Even if you haven’t been operating in your industry for a significant period, you may have a thriving firm and strong finances. Thus, you simply need to find the perfect lender for your case. When determining where to seek small business loans, consider every possibility. Some lenders don’t require long business experience, so do your research and weigh your options carefully.

5. Too high or too low debt utilization

Creditors often prefer that you use less than 30% of the entire loan. Many lenders will flag your business as “overextended” if you use too much. It makes financers apprehensive that you won’t be able to repay them in time. But this doesn’t mean you should completely abstain from debt.

What you can do: If you haven’t made any loans or never had the chance to use your credit in the past, this might work against your enterprise. Maintain an acceptable debt consumption by keeping track of your entire credit limitations. It includes lines of credit, business credit cards, personal credit cards, and other sources of loans.

6. Poor business performance

Financing providers may be wary of approving debt to enterprises with low income and long break-even points. It undermines the ability of your organization to pay back the loan. 

What you can do: Controlling your credit and increasing your firm’s cash flow can be the solution to your application’s rejection. Ensure that you’ve submitted recent financial accounts so that inaccurate data don’t influence the financing decision.

You may also consider lowering the amount of your asking loan. While this may seem discouraging at first, it may be sufficient to satisfy your company’s demands without placing you under unnecessary financial strain when making loan repayments.

7. Too big or too small a loan

Lenders look at your debt-service ratio to see whether you have the adequate cash flow to pay back your loans. The higher the figure, the healthier your financial capacity is. For a small business loan application, you’ll often need a ratio of at least 1.15. But minimizing your debt to get a better percentage might be harmful. The expense of administering small loans may not be worth it for some lenders. 

What you can do: Check your financial estimates and company strategy. Doing so ensures that you’re not undermining how much money you require. Perhaps, you can also reapply and request a more significant amount.

If you don’t need that much, it’s unnecessary to pressure your business into applying for a lump sum or considerable capital. Instead, look for an alternate finance provider, such as a microlender or an invoice-based financing option that offers smaller loans.

Earn That Loan Approval Today

Research is everything when filing a business loan application. You have to make sure the lender you choose can accommodate your specific loan terms and that you meet their qualifications. Business owners having trouble with bank loans can consider online lending companies. Apply for a business loan from JK Capital for accessible and quick applications.

Business Loans Guides

7 Questions Lenders Ask During a Business Loan Application

If you’ve ever had to take out a personal loan, then you know that interviews are a critical part of the application process. Interviews are a way for financers to ensure that you can pay back the amount you borrowed in full and on time.

Business loans work the same way. You need to go through an interview process to support your eligibility for the loan. Your goal is to prove the following:

  • Your business can make loan payments on time.
  • Your business has a clean track record of cash flow.
  • You, as an owner, have other assets to pay the loan if your business fails.

This might seem like a lot to prepare for a loan interview. But much like a job interview, the lending company needs to know if you fit the requirements and qualifications. 

Common Business Loan Application Interview Questions 

To help you out, here are some of the common questions asked when applying for a loan that can help you prepare for your interview.

1. How would you summarize your business?

If ever you’re asked this question, you simply have to know your business plan. So, make sure that you know your business like the back of your hand.

Interviews are a chance for you to elaborate on certain aspects of the business plan. The added details can boost your chances of being approved. However, you don’t have time to discuss your entire business plan, so ensure that your answers are like an elevator pitch, highlighting your business’s profitability and cash flow.

2. How will you use the money?

The financier wants to know how you’ll use the money to build your business. Telling them all the things you’ll buy or spend on won’t be enough to answer this question. Instead, justify all your purchases and explain how these will aid the growth of your business.

Lenders want you to assure them that you can pay back the loan. So, for example, if you’re going to use the money to expand your physical store, you can inform the lender that the expansion will give you the money to repay the loan. 

3. How will you repay the loan?

Aside from knowing how you’ll use the money, the loan officer’s interview questions would include how you plan on repaying the loan. Of course, you’ll be using the money for your business, so it only makes sense to pay them back with the profit you’ve made, not your net income.

Financers won’t bother granting your application if your business doesn’t seem all that profitable. This is why aside from discussing the profitability of your business, you should also talk about the other assets you have that can repay your debt in case your business goes sideways.

Consequently, your lender may also ask about your past business, tax returns, or outstanding debt that can affect your repayment. It may be difficult for you to evenly distribute payment for your loan debt and keep the business afloat. As such, you need to prepare an answer if you’re still repaying old debts.

4. How do you manage your accounts receivable and payable?

How do you manage what you owe to others and what others owe your business? Answering this will give your financers an idea of your business’s cash flow and the kind of companies you deal with.

5. What kinds of insurance do you have?

Insurances help cover the costs associated with whatever damage your business sustained. Without business insurance, owners may have to pay out-of-pocket. Being insured helps assure the lender that you have a safety net to protect it from financial crises and other unforeseen problems.

6. How do you explain any of your past business failures? 

Lenders want to know if you’ve had any financial hardship or failed businesses in the past. Prepare to explain these that might set off alarm bells for your lending company. They’ll evaluate what went wrong—if it was the business structure or the management. This is insurance on their part because they wouldn’t want to provide a huge sum of money to a business that has a history of repeated, similar failures.

7. Can you put up any collateral?

Collateral is something you pledge as a safety net for the loan if you cannot pay for it. This can be assets such as a house or inventory. If you don’t pay your loan, your lending company takes the collateral.

Tips to Ace Business Loan Interview

  • Know your business plan inside out

To help answer any question thrown at you, no matter how hard, know your business plan inside-out. Backing up your claims with figures and examples will help.

  • Accurately estimate the amount of capital you need

Don’t ask for too little or too much. The capital you ask for should match what you’re planning to do with your business. It would help to have estimates or quotes for the materials you need and an expenditure forecast of other areas you’ll need to spend on to inform your lender better.

  • Do your research on the lender

If you’ve chosen a lender, learn about the types of businesses they prefer. This will give you a glimpse of whether or not you’ll fit their requirements or not.

  • Have relevant documents on hand

It’s always good to be prepared. Get physical copies of relevant records as proof during your interview. This will help strengthen your argument for why you should land this loan. You never know when you’ll need to show your facts and figures to drive your points home.

Get Approved Today

Getting a loan application is difficult, but not impossible. Boost your chances by preparing for the interview and knowing the common loan questions and answers. If you’re a business owner looking for loan options with a simple process, consider online lending companies like JK Capital. With easy and quick applications, you get a seamless experience and immediate funding.

Apply for a business loan today!

Business Loans

Pros and Cons of Collateral Loans for Your Business

Starting or expanding your business requires a significant amount of funds. Sometimes, your savings aren’t enough to cover the expenses needed. This is where loans can be of help. Business loans in the Philippines can tide you over when you need an extra financial boost.

However, applying for one may be difficult. Lenders see businesses as huge risks because of the possibility that the ventures might fail and go bankrupt. They can be very thorough with the approval process, causing some entrepreneurs to get denied. Other times, they increase the interest rate or require collateral.

Collateral loans are beneficial for start-ups and business owners with bad credit when borrowing money. But what is a collateral loan? And what are the advantages and disadvantages of applying for one? Read on to learn if a secured loan is the best financing option for your small business. 

What are Collateral Loans?

Collaterals are assets you pledge to the lender as long as your loan is active. When you take a collateral loan, you give the lender the rights to your assets, may it be a vehicle, real estate property, stocks, or equipment. Lenders take hold of your property as you use the borrowed money. If you default or fail to repay, they keep your collateral. 

Since lenders see businesses as high-risk investments, they use collateral to reduce their risks of losing money. From a lender’s perspective, the best types of collateral are assets that they can liquidate quickly or easily convert to cash. According to a 2021 Statista survey, the most common loan collaterals used in the Philippines are ATM accounts, land, harvest, vehicles, and real estate properties. 

The value of your collateral and how much you can loan will all depend on the lender. Once you propose collateral, the lender will determine the loan-to-value ratio by appraising your assets. For example, they’ll only allow you to borrow 80% of the appraised real estate value. 

Pros of Collateral Loans for Businesses

Here are the advantages of taking a secured business loan:

  • Easy to qualify for even with poor credit history

You can access financing even if you have a below-average credit history. Since lenders secure your loans with collateral, they’re more lenient on application requirements. Secured loans also allow you to build back your credit. With unsecured loans, it can take several months or years to rebuild your credit to qualify for a loan. 

  • Low interest rates

Compared to non-collateral loans, lenders usually see collateral loans as a less risky choice. Thus, they’re more willing to offer lower interest rates. If you have a good credit history, steady income, and valuable assets, you can leverage those by shopping around and looking for lenders with the lowest interest rates. 

  • Potentially high loan amount

Depending on the value of your collateral, lenders generally let you borrow a higher loan amount. Since they have the collateral as security, they have something to fall back on if you default on the loan. The more valuable and liquid your asset is, the more money lenders let you borrow. 

  • Greater flexibility

Lenders are more flexible with their financing options when you put up collateral. For example, they can provide longer terms because of the reduced risks, which means your monthly charges are lower.

How long can a secured business loan be paid? Some borrowers let you pay off the loan for several years, even reaching a “30 years to pay” agreement. 

Cons of Collateral Loans for Businesses

There aren’t a lot of disadvantages to a secured business loan, but here are its major cons:

  • The application process may be longer 

The application process for secured business loans may take longer than unsecured loans because the lenders need to appraise the value of your collateral. You also have to provide more information that stacks up to the steps of getting your loan funded. However, the actual speed of the process will depend on the lender—some can be faster than others. 

  • Possibility of losing property 

Since you transfer the property rights to the lender, you risk losing your assets. The lender repossesses your collateral when you fail to pay the minimum monthly charges on time. However, this is just if you can no longer make the payments. You won’t lose your collateral if you abide by the lender’s terms.

Easy Approval Process and Great Loan Terms

When borrowing money, you want the best possible rate. If your business has valuable assets that can serve as collateral, get a secured business loan for lower interest rates and more borrowing power—even if you have a poor credit history. Just make sure that the chances of you defaulting are slim to none to avoid losing your collateral.

If putting up collateral isn’t possible, you can always apply for unsecured loans. JK Capital offers fast and easy unsecured business loans. You also have the option to put up collateral to improve your loan terms. Check out your options and apply for a business loan today!


Business Advice Business Loans Guides Small Business

How to Fund Your Small Business: SME Loans to Consider

Passion, grit, and patience are essential for entrepreneurs, but these aren’t enough to start a business. Of course, you need the skill to find financing to set your venture in motion.

Many small- and medium-sized enterprises (SMEs) tend to put together funding from various sources— for example, from friends and family. However, it’s easier to get funds from a single source, such as from a loan. This is where small business loans come in. It is a practical form of financing, especially since various loan types and financier options are available.

Of course, it’s essential to carefully research each loan type available to weigh your options and select the right one for your business and growth goals.

Where to Get a Business Loan

Read on to find out how to fund your small business fittingly by exploring the various loan types and where to get a business loan in the Philippines.


As the name implies, government agencies provide this financing solution. The two primary agencies in the Philippines providing small business loans are the Small Business Corporation (SB Corp) and the Department of Trade and Industry (DTI).

To be eligible for this loan, you should be an active member of the government body you wish to avail of the loan from. This means you must be a registered and regular contributor. Contributing regularly also boosts your odds of getting approved for the application.


  • Active members have good odds of getting approved for the loan application.
  • Payments are easy; they’re directly deducted from your salary every month.


  • The application can be a lengthy process with a government agency.
  • While you can get interest- and collateral-free government loans, you will still be charged a service fee.


Many banks offer lending programs to support entrepreneurs, making them one of the primary business funding sources. Getting a bank loan entails paying interest to repay the bank for the loan. Philippine banks generally provide short- or long-term repayment terms, depending on your needs.


  • Banks offer easy application and flexible payment terms and repayment plans.
  • You can utilize the loan as a step to unlock other financial privileges with the bank.


  • Banks often have strict requirements and a lengthy application process.
  • Banks look into your credit line and credit standing.
  • They may require collateral for the amount borrowed.


Private lenders can refer to individual investors or companies with investors that offer personal or business loans. Qualified firms can be preapproved based on a range of criteria. This funding option can benefit companies that wish to expand for higher profits.

Private financing institutions like JK Capital provide easy business loans in the Philippines to support the growth of local enterprises and boost the economy.


  • Simpler requirements and application process.
  • Faster approval and turnaround time to receive the borrowed money.


  • The loan may come with higher interest rates.
  • Some private lenders require a co-guarantor to be liable for the loan in case of missed payments.

Types of Business Loans in the Philippines

Now that you know where to get a business loan in the Philippines, it’s time to discuss the types of loan you can apply for. Most of these loans are offered by banks and private lenders, whereas government agencies typically provide traditional term loans.

Now that you know where to get a business loan in the Philippines, it’s time to discuss the types of loan you can apply for. Most of these loans are offered by banks and private lenders, whereas government agencies typically provide traditional term loans. 

1. Term Loans

Terms loans are offered in a lump sum and paid in monthly installments over a specified period. The monthly payment comes with a fixed interest rate for the loan span, making it easy to plan for. 

Traditional banks offer term loans, which can come with or without collateral. This loan type is ideal for financing the renovation or expansion of an existing business and additional funding for capital or acquiring equipment for growing production. 

2. Short-Term Loans

This type of loan is for businesses that need financial support short-term gaps, such as to finance business expenses for continued operations. Short-term loans are typically offered online and are payable in a year, depending on the lender. The process for short-term loans is fast and simple, but the interest rates run high.

3. Lines of Credit

Traditional banks offer lines of credit that allow entrepreneurs access to money whenever they need it, especially during urgent situations, so long as the money is within their credit limit. A line of credit works similarly with a credit card, where it replenishes when the balance is fully paid. 

Business owners who need a stable source of cash for tight financial situations can benefit most from this type of loan. But much like with term loans, banks are meticulous when approving lines of credit. 

4. Invoice Financing

Based on the name, this loan is only an option for businesses that invoice clients since lenders use your accounts receivables as security. This type of financing works by sending your invoice to a potential lender to advance cash in case of future invoice payments. It’s a reliable solution for short-term cash flow issues for small businesses. 

5. Merchant Cash Advance

For business owners who can’t meet the qualification requirements for other types of loans, merchant cash advance companies offer this commercial loan as a viable option. You receive a cash advance from the lender and pay it back from your business’s daily credit card sales. It’s a flexible payment solution with a short-term loan amount but comes with high fees and interest rates. 

6. Equipment Loans

Equipment loans are a financing option used for purchasing or leasing machinery or other equipment, such as a printing machine, restaurant equipment, or vehicle, essential for your business to operate and grow. The equipment you purchase can act as collateral for the loan, which means the lender can repossess it if you default on the loan. 

Get Your Business Off the Ground

Taking out a small business loan is a serious financial decision. With the many loan types and different institutions to get them from, it’s crucial to consider your options carefully before making the final call. A suitable financing solution can certainly help you meet your business goals. 

Don’t be afraid to get the financial support you need. Back your business up with the right financing option from the right financial partner. Apply for a business loan today with JK Capital, and let’s get your business running!