Quick Guide To Business Loans
Why Should I Apply For a Business Loan?
Some find the process of applying for a personal or consumer loan already intimidating.
What more a loan for a whole business? But the fact is, a business loan or MSME can open a lot of doors for your enterprise. The extra funds borrowed from a financial institution could take your business much further—in a shorter period of time—than possible on your initial capital.
A small business loan or MSME loan could do the following great things for your enterprise:
- It could provide you with additional working capital so that you can address your business’s day-to-day operations with ease.
- You can benefit from a line of credit extended to you, and borrow money for your money as needed while remaining within your limit.
- You can use the funds to purchase inventory of existing products that your business sells.
- Alternately, you can borrow money from the bank in order to pursue a new product line that your customers are looking forward to.
- The money from the loan can also be used to purchase equipment and machinery so that your business can have a greater technological edge.
- If you plan to expand your business to another location, a business loan will make that transition smoother and increase your chances of success there.
- You can also explore taking out a small business loan in order to acquire new land or property.
Those are just some ways that a business loan or MSME loan can improve the way your business does things. If the loan contributes to your business performance and its revenues, it won’t be hard for you to pay back that investment.
Why Is Robinsons Bank the Best Partner For Business Loans?
Something that counts for a lot when applying for a business loan is your partner bank.
Not only should you consider the bank’s credentials and standing in its industry. You should also be careful about selecting a bank that offers your business the best possible terms for a loan. And, in addition, you will want a creditor that is aware of and responsive to your business’s financial needs.
Robinsons Bank is the best candidate for a small business or MSME loan for the following reasons:
- We are a respected name when it comes to both personal banking and business banking. Robinsons Bank is one of the most competitive names in the Philippine banking industry by virtue of its capitalization and its asset size. We have steadily become the bank of choice for individual consumers as well as Filipino businesses. Our customers trust us in aspects like bills payment, supplier payment, payroll, and disbursements. We promise the same excellence when it comes to our business loan programs.
- You have a lot of choices for how to finance your business. Our two flagship business loan programs, Go! Small Biz and Go! mSME, offer a lot of options. We can help you narrow down what exact kind of financing your business needs, whether it’s a line of credit or equipment acquisition. Just tell us what type of industry you operate in and what your needs are, and we can work out the best loan arrangement with you.
- We pledge clarity and straightforwardness in our process. Our Robinsons Bank account officers will walk you through every little detail of your chosen loan arrangement. You won’t have trouble calculating how much your monthly amortization is and settling payments with Robinsons Bank in a timely manner.
- We can help you develop your business sense. After all, Robinsons Bank is the official banking arm of the JG Summit Holdings Group. We take as much pride in the success of Filipino businesses as we do in the success of our parent conglomerate. We want to see your hard work pay off, so we will do what we can to make the conditions right for you.
What Types of Business Loans Can I Apply For at Robinsons Bank?
Robinsons Bank has two business loan programs: the Go! mSME program and the Go! Small Biz program. Here’s an introduction for each one.
- Go! mSME is Robinsons Bank’s MSME loan program. This is an ideal loan program for micro, small, or medium enterprises in the sectors of agriculture, industry, and services. You can loan a minimum of PHP 300,000 and a maximum of PHP 2,000,000 for your MSME through this program. If you get approved for the Go! mSME loan, you can expect your loan term to be between 6 months and 2 years.You do not need collateral for Robinsons Bank’s Go! mSME loan. But for security, the bank will hold on to 20% of the loan proceeds until your loan is paid.
- Go! Small Biz is Robinsons Bank’s small business loan program. It is a great program for would-be entrepreneurs wanting to start a business or existing entrepreneurs who want to expand. The minimum loanable amount for the Go! Small Biz business loan program is PHP 500,000. The maximum loanable amount is PHP 20,000,000. A Go! Small Biz loan may have a minimum term of 1 year and a maximum term of 10 years.The Go! Small Biz loan requires collateral for security. Collateral that Robinsons Bank accepts for this loan program are residential, commercial, or industrial property as well as deposits.
You can find out the particulars of each business loan program by clicking on its respective page!
What Makes Me Eligible For a Business Loan at Robinsons Bank?
Robinsons Bank’s business loan programs allow you to apply as an individual borrower or as a business entity.
The two loan programs Go! Small Biz and Go! mSME have their own criteria for eligibility. But in general, you may be an eligible borrower if the following apply to you:
- You should be at least 25 years old by the time you apply for the business loan.
- If you’re employed, you should be of regular/permanent employment status for at least 1 year, with continuity of employment for at least 3 years.
- If you own the business, you should show proof of the business’s operation and profitability for at least 3 years.
Be sure to look at the individual Go! Small Biz and Go! mSME pages for more information, or ask a staff member of Robinsons Bank.
How Do I Apply For a Business Loan at Robinsons Bank?
To kick off the process of applying for a business loan or MSME loan at Robinsons Bank, you should prepare your application requirements.
Each loan program from our bank will require the following from you:
- A filled-out and signed application form for either Go! mSME or Go! Small Biz
- Valid government-issued IDs
- Proof of employment
- Business papers, such as registration with the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC), business permit, and the like
- Income tax return and audited financial statements
- Bank statements or a copy of your passbook with transactions over the past 6 months
- Your latest proof of billing
- A list of at least 3 major suppliers and customers
- Collateral documents, such as transfer certificate title (TCT) of property, if needed
Visit the Robinsons Bank Go! mSME and Go! Small Biz pages for the specifics. When you have all of these documents ready, you can go through these steps:
- Contact Robinsons Bank about which loan program you are applying for.
- Bring all of the necessary requirements with you.
- Wait for Robinsons Bank to process the requirements and give you updates on the status of your application.
How Do I Calculate My Monthly Amortization For My Business Loan?
If you’d like a rough idea about how much your monthly amortization will be, try out Robinsons Bank’s loan calculator.
This is a neat feature on our website that allows you to calculate your monthly payments, based on a tentative loan amount and loan term.
The quoted loan amount from our calculator will give you a rough estimate and can help you prepare to pay off your business loan. But of course, the actual and final computation will come from your Robinsons Bank account officer. Please wait on their instructions for how much to repay each month.
How Can I Improve My Chances of Getting Approved for a Robinsons Bank Business Loan?
Banks are understandably very careful about lending large amounts of money to businesses.
But as someone applying for a business loan or MSME loan, you’ll have good chances with Robinsons Bank if you do the following.
- Review the features of our business loan programs and choose the option that best meets your needs.
- See that you meet the eligibility criteria for either the Go! mSME or Go! Small Biz loan programs.
- Make sure that the requirements that you pass to the bank are
- Prepare your collateral if your business arrangement requires it.
- Have good credit standing so that Robinsons Bank will see you as a trustworthy borrower.
If you check off on the following five items, then you have good chances of getting approved for an MSME loan or small business loan. Make sure to make the most of this financial opportunity that can spur your micro, small, or medium enterprise to even greater heights!