Business owners need money to make even more money. That’s the plain truth. The absence of funds will keep creative ideas dormant, no matter how great they may be. You could have a eureka moment on innovative furniture designs, but with limited to zero capital funding, you will not get anywhere near having your own furniture store. A company remains stagnant if it does not consider expansion and there’s a risk of losing its market position to competitors too.
In any case, entrepreneurs would need extra financial support in order to implement lucrative plans and advance their business operations.
Before discussing what business loan is, lets have a looksee at the definition of these words separately.
Business, according to Investopedia, is an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause.
Loan, according to Cambridge Dictionary, is an act of lending something, especially a sum of money that has to be paid back with interest.
A business loan is part of a quick solution to bringing business ideas and plans to life. By definition, it is borrowed money that a company must repay on the date set by the loan agency, with interest rates and processing fees applied, all agreed upon by the borrower through a binding contract. If there’s a breach of contract, the lending company has the right to take legal actions against the debtors.
Loans often are given with interest, which may be fixed or variable. An interest rate is fixed if it remains the same for the duration of the loan. It’s called variable interest rate, if there are changes with the determinants, such as the behavior of the borrower in terms of paying on time or consistency with the amount being paid.
Most Philippine loan companies, same with banks, require collateral and co-makers from borrowers. They too have tons of requirements that must be met before an application gets processed, which may take a lot of time completing, especially if business documents are not readily available.
ANDA.LI offers non-collateral loans and require minimal requirements, which differ for each type of business loan. We have Working Capital Loans for startup companies. Revolving Capital Loan to replenish funds. Purchase Order Loan to cover for orders received. Lastly, Sales Invoice to keep operations ongoing while waiting for payments from clients. Anyone who’s eligible to apply for any of these loans can enjoy up to P2M.
Click here to apply for an ANDA.LI business loan, or call us at these numbers: +63 2 898 3889 and +63 917 535 8956.