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Business Loan 101: Documents You Need in Order to Secure a Business Loan

Many small to medium businesses are growing in the Philippines. Perhaps you will join the ranks one day as one of the country’s innovative businessmen. If you’re thinking about building a business, you will wonder where you’ll get the money.

There are two ways. One is through loans, and one is through investment. When you loan money from an individual or an organization, you’ll usually pay them with interest after a period of time. Even if you are borrowing from a family member, it’s always best practice to still pay interest when borrowing money. When you get money through an investor, you’ll usually need to give up a certain amount of equity of your business in order to get the funding you need.

Depending on your business, you’ll have to choose wisely on how you’ll get money to start. If you do choose to get a business loan, you can choose from different sources like banks or credit unions. They will have their own set of requirements, but in general, the following documents should be sufficient to submit to acquire your business loan.

1. DTI permit for single proprietorship and SEC registration for corporation type of business
2. Completely filled up application form
3. Government IDs
4. Business Permit
5. Photocopy of Income Tax Return
6. Photocopy of Audited Financial Statement
7. Bank Statements

All of these are needed for big sums of money, but if you only need smaller amounts, there’s another solution.
You can also avail of a business loan from Cebuana Lhuillier. You’ll only need to give photocopies of your:

• Business Permit
• Proof of Income
• Proof of Billing

Interest rates are as low as 2%. While this is only available to the Laguna and Southern Manila area, you can be sure that one day your business will get off the ground with Cebuana Lhuillier as your business partner.