Business Loans 101 for Philippine-Based SMEs and Startups

August 22, 2023
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4 minute read


While starting a business in the Philippines is easier than ever, developing a small business or startup into something profitable still often requires a considerable amount of capital. For many founders, taking a business loan will be the only way they can launch their venture or survive unexpected financial difficulties during the early stages of their entrepreneurial journey. However, navigating the world of business loans can be challenging, especially for those unfamiliar with the process of taking out credit from even the most common sources. 

Fortunately, Maya is here to answer some of the questions you might have and to address some of your  funding needs. While Maya is best known as a market leader for digital payment solutions, Philippine-based small- to medium-sized enterprises (SMEs) and startups have come to rely on the fintech pioneer’s selection of innovative financial services. Apart from the popular Maya Business Deposit savings product, Maya is also getting a lot of attention for its unique, no-collateral Flexi Loan offering. In this short guide, we’ll share insights into the reasons your business might need a business loan like Flexi Loan, along with essential tips for securing good quality credit.

Reasons Your Business Might Need a Loan

Though borrowing money has a negative connotation among many Filipinos, seasoned entrepreneurs understand that taking out loans for businesses is necessary in many situations. For many ventures, high-quality business banking loans like Maya Flexi Loan are the only way to they can safely offset certain risks and capitalize on fleeting opportunities. Here are some legitimate reasons for your business to take out a loan:

  • Working Capital:
    Regardless of your financial position, obligations like salaries, utility bills, and rent have to be met. Failing to meet these obligations can destroy your business’s credibility and long-term survival, so taking a loan to cover these expenses can be a good and strategic move. Loans from Maya Flexi Loan have a short approval time and require no collateral, making them perfect for covering these unexpected shortfalls in your working capital.
  • Business Expansion:
    As your business grows, opportunities for expansion may arise. Taking a business banking loan can help you invest in your facilities, enter new markets, or hire qualified experts that can grow your business. So long as the loan is well-planned and goes into something that helps your business create value, it can be a catalyst for achieving greater success.


  • Purchasing Equipment and Machinery:
    Provided that there is a proven demand for your products, taking out a loan to purchase specialized machinery to help with production and distribution can be an acceptable risk, as it may reduce operational costs and help secure market shares over the long term.
  • Inventory Financing:
    Businesses with inventory-based operations may unexpectedly face cash flow challenges when restocking their shelves. Inventory financing loans can help businesses purchase inventory upfront, ensuring a steady supply of products without risking their business’s liquidity.
  • Launching New Projects or Products:
    To stay competitive, your business may need to introduce new projects or products. A loan can provide the necessary resources for research, development, and marketing to successfully launch new initiatives.

Tips for Getting Good Quality Loans
To secure a quality business loan, Philippines startup and SME owners should do the following:

  • Open a Business Deposit Account with a Trusted Bank or Financial Institution: 
    Serious lenders will not entertain loan requests from businesses that use personal bank accounts. Once your business is up and running, make sure to apply for a Maya Business Deposit account to enjoy better credibility as well as high interest rates on your business’s savings.
  • Develop a Positive Relationship with Lenders: 
    Having a business banking account like a Maya Business Deposit account is just the first step in developing your business’s creditworthiness. You’ll also need to boost your credit rating by paying your bills and your creditors on time. For example, you can get better Maya Flexi Loan offers by consistently using your Maya Business Deposit account and other Maya Business solutions such as Maya Terminal and Maya Checkout.

  • Assess Your Business Needs:
    Before approaching any lender, assess your business's specific financial requirements. Once you’ve done this, prepare a detailed plan that shows how much capital you need, how you intend to use it, and how you will repay the loan. Being well-prepared with a comprehensive business plan can enhance your credibility with potential lenders and help you score a good loan offer. Maya Business account users enjoy a much simpler application process when requesting a Flexi Loan. Once you complete the application, you should be notified about your loan request in minutes. If you accept the loan offer, you’ll get the funds in your Maya Deposit account in no time.

  • Research Different Lenders:
    You’re probably qualified for more loans than you realize. Look up fintech companies, traditional banks, government programs, and microfinance institutions to find loans suitable for your business model. Research and compare their interest rates, terms, and eligibility criteria to find the best fit for your business.
  • Maintain Good Credit History:
    Lenders consider credit history a crucial factor in loan approval. To improve your credit rating, make sure to pay your bills on time, avoid borrowing too often, and periodically check your credit report through the Credit Information Corporation to address inaccuracies.
  • Collateral and Guarantees:
    Some larger business loans may require collateral or personal guarantees to secure the funding. If you need to take out a big loan, be prepared to offer assets, such as property or equipment, to secure it. Fortunately, Maya Business solution users do not need to offer collateral to secure a Maya Flexi Loan.

Flexible Funding for Your Business

Understanding how loans work can help Philippine-based startups and SMEs forge a quicker path to growth and profitability. If you need safe and secure funding, Maya Flexi Loans are a great way to get resources for expansion, operational needs, or investment in value-creating assets. 

To secure a Flexi Loan, create a Maya Business Manager account and start using Maya’s excellent suite of in-store and online business solutions. Using Maya Business products frequently can entitle you to a Flexi Loan offer of up to PHP 2 million, enough to cover most contingencies. Getting a Maya Business account also qualifies you to get Maya’s 1-2-3 Grow bundle. 1-2-3 Grow is a special offer that entitles you to a 1% merchant discount rate on all QR Ph sales for 3 months from promo onboarding, saving you up to PHP 14,600 for every PHP 1 million in sales at the discounted MDR of 1.54%. Sign up for a Maya Business account and 1-2-3 Grow today to open a world of savings and funding possibilities for your SME or startup.