Turning to lending companies is a trend for Filipino entrepreneurs today. Find out why.
It’s a common practice in the Philippines for startup entrepreneurs to have sidelines, put their savings at stake, or simply borrow money from family or more successful peers. But once they decide to step out of being a micro business such as a sari-sari store and explore the bigger world, they would definitely need bigger investments.
This is where business loans become practical. From commercial banks to lending companies, there are many institutions that provide financing for a growing business.
But why do Filipino entrepreneurs mostly turn to lending companies? Compared to commercial banks, lending companies tend to have less stringent document requirements. They also process loan applications faster, offer lower rates and have flexible loan terms. With the promising Philippine economy, these firms will continue to have more branches to cater to more small and medium sized enterprises. One such firm is Stanford Finance Corporation.
“The lending industry is arguably the growth engine of the economy as it provides the fuel for businesses to expand,” shared EFI’s Navin Uttamchandani, President and Chief Operating Officer. “As such, a growing economy can only be supported by a developing lending industry.”
As the World Bank stated in its East Asia Pacific Economic Update published in April, the Philippine economy would likely grow by 6.6 percent this year, which is within the government’s growth target of 6.5 to 7.5% for 2014. This is all the more reason to gain confidence and seek out financing aid to grow a business.