In the Philippines, securing a business loan can be an effective way to fund startup costs, manage cash flow, or facilitate growth and expansion. However, obtaining a business loan involves meeting certain requirements set by lenders. These criteria ensure that businesses have the capacity to repay the loan and manage their operations efficiently. Here’s a look at the common business loan requirements in Philippines.

Filipino Citizenship and Age Requirement

For a business loan in the Philippines, one must be a Filipino citizen aged between 21 and 65 when the loan matures. This age range ensures that borrowers are legally able to enter into a contract and are likely to be economically active.

Valid Government-Issued ID

Lenders require a valid government-issued ID to verify the identity of the borrower. This could include a passport, driver’s license, or any other ID given by the Philippine government.

Business Registration and Legality

Businesses must be legal, registered, and operating in the Philippines. This means having a Certificate of Registration from the Department of Trade and Industry (DTI) for sole proprietorships or from the Securities and Exchange Commission (SEC) for partnerships and corporations.

Mayor’s Permit

A Mayor’s Permit or Business Permit shows that the business is allowed to operate in the city or municipality where it’s located. This permit is renewed annually and is a standard requirement for business loans.

Financial Statements

Lenders typically require financial statements to assess the financial health of the business. These documents, which include income statements, balance sheets, and cash flow statements, provide a clear picture of a business’s profitability and financial management.

Getting a loan
Getting a loan

Bank Statements and Loan Application Form

Banks often require bank statements as part of the loan application process. These statements give lenders insight into a business’s cash flow and financial stability. Additionally, a signed and completed loan application form is usually required.

Business Tenure

Many lenders require businesses to have been operational for a certain period, often at least two to three years before they’re eligible for a loan. This helps lenders assess the stability and long-term viability of your business.


While these are the common requirements for a business loan in the Philippines, it’s important to note that each lender may have its own specific criteria. These measures may include factors such as the credit history of the borrower, the financial stability of the business, and the purpose of the loan. Therefore, it’s crucial to thoroughly research and understand the requirements of the specific lender and loan product you’re considering.

By ensuring you meet these requirements, you not only increase your chances of securing the funding you need to grow and expand your business but also establish a stronger relationship with the lender. This can lead to potential advantages such as lower interest rates, flexible repayment terms, and access to additional financial resources in the future.

Remember, a well-prepared loan application that clearly addresses these requirements and demonstrates your ability to repay the loan can make a notable difference in the success of your loan application. So, take the time to gather all necessary documents, analyze your financial situation, and present a strong case to the lender. With preparation and attention to detail, you can confidently pursue the funding you need to achieve your business goals.