Securing funding is one of the biggest challenges for Philippine startups. Despite a surge in venture capital, over US$1.3 billion was invested in 2024, most early-stage founders are left out, as banks require collateral and lengthy credit histories that new businesses rarely have.
Recent figures show an 82.1% drop in startup funding from last year, with most deals going to established ventures, leaving true startups struggling for capital.
Fortunately, online business loans and digital lending platforms are changing the game. Startups can now access unsecured loans quickly, without collateral, through banks, fintechs, and government programs.
In this blog, you’ll find the best unsecured loan options for Philippine startups, see how to compare lenders, understand eligibility, and get tips for a successful application. If you want fast, practical solutions to fund your business, this guide is for you.
What is an Unsecured Business Loan?
An unsecured business loan is a type of loan that does not require you to pledge any assets as collateral. Instead, lenders approve your loan based on your creditworthiness, business performance, and repayment ability. This means you don’t risk losing property or equipment if you can’t pay back the loan.
Unsecured loans are popular with startups because they are faster to process and easier to access, especially for businesses without valuable assets.
Before choosing a loan, knowing how unsecured loans differ from secured loans is important. Here’s a quick comparison:
Unsecured business loans are ideal for startups that need quick funding without putting their assets on the line.
Benefits of an Unsecured Business Loan
Unsecured business loans are a popular choice for startups and small businesses because they provide essential funding without the need for collateral. Here are some of the key benefits of an unsecured business loan in the Philippines for startups:
- No collateral is needed, so your business or personal assets are not at risk if you default on the loan.
- Faster approval and loan processing, since there’s no need to appraise or verify collateral, allowing you to access funds quickly when you need them most.
- Easier to qualify for, especially if you lack assets or are a new business, as lenders focus on your creditworthiness and business performance instead of requiring security.
- Flexible use of funds, letting you allocate the money for various business needs such as working capital, inventory, expansion, or equipment, without restrictions from the lender.
- Flexible repayment options, with many lenders offering terms that can fit your budget and cash flow needs.
- Opportunity to build your business credit history, as timely repayments on unsecured loans can improve your credit score and help you qualify for larger loans in the future.
These benefits make unsecured business loans an attractive and practical option for startups and small businesses looking to grow without risking their valuable assets.
Best Unsecured Online Business Loan Options for Startups in the Philippines
Startups in the Philippines have multiple options for securing unsecured (non-collateral) loans, ranging from government-backed programs to private banks and digital lenders. Here’s a breakdown of the top sources:
Government-Backed Loan Programs
Government-backed loan programs are crucial for startups and MSMEs because they offer affordable funding options with lower interest rates and longer repayment terms. These programs are supported by government agencies like DTI, SB Corp, and LandBank, making them more accessible and less risky for early-stage businesses. Here are some of the loan programmes available:
- Small Business Corporation (SB Corp) Loans: Under the Department of Trade and Industry (DTI), SB Corp offers loans from ₱ 50,000 up to ₱ 3 million for MSMEs, including startups. These loans are designed for businesses that are at least 60% Filipino-owned and operate in priority sectors like agriculture, manufacturing, or services.
- DTI CARES Program: This initiative provides zero-interest loans up to ₱ 500,000, with repayment terms of up to three years, to help startups recover or launch.
- LandBank MSME Financing: LandBank offers programs such as the Go Green initiative, providing loans up to ₱ 300 million for eco-friendly startups and other MSMEs.
- DTI Pondo sa Pagbabago and Pag-Asenso (P3) Program: This program offers microloans ranging from ₱ 5,000 to ₱ 200,000 at competitive rates, accessible through the SB Corporation.
Private Banks and Traditional Lenders
Private banks and traditional lenders remain a key source of business financing, especially for more established startups with a proven track record. These institutions offer a variety of loan products, often with larger loan amounts and flexible terms, but may require stricter eligibility and longer processing times. Here are some of the options available:
- Security Bank’s Business Express Loan: Offers unsecured loans from ₱ 500,000 up to ₱ 7.5 million with flexible terms (12 to 36 months). Applicants must have an established business operating for at least three years and meet specific financial requirements.
- Welcome Bank: Offers business loans from ₱50,000 to ₱3 million, with repayment terms up to three years. The interest rate starts at 1.39%, making it a great option for startups and small businesses.
- Union Bank: Provides loans from ₱50,000 to ₱1 million, also with terms up to three years. The monthly interest rate is 3%. UnionBank’s loan is ideal for MSMEs and entrepreneurs needing working capital and stands out for its fast approval and no collateral requirement.
- BPI Unsecured Loans: BPI provides unsecured business loans for startups, though details on amounts and terms require direct inquiry.
- Zenith Capital SME Loan: Provides loans from ₱500,000 to ₱20 million, with terms up to 12 months and competitive interest rates, suitable for startups seeking larger capital.
Online Lending Platforms
Online lending platforms are important because they make it easy and fast for startups and small businesses to get loans without collateral. These platforms use technology to speed up approval and disbursement, helping businesses access funds when they need them most.
They are classified as digital or fintech lenders, and they stand out from traditional banks by offering simple applications, quick decisions, and flexible loan options. Here are some options:
- N90: N90 is a leading digital lending platform in the Philippines that empowers startups and SMEs with unsecured loans, including Bridge Loans, Small Business Loans, and Invoice Factoring, all tailored to help you manage cash flow gaps or fund business growth.
With loan amounts up to ₱25 million, approval as fast as 10 minutes, transparent terms, and competitive interest rates starting at 1.50%, N90 stands out for its user-friendly application process, expert guidance, and commitment to building long-term, trust-based relationships with its clients. - Maya Flexi Loan: Startups can access up to ₱ 2.5 million through Maya’s instant credit line, with fast approval and disbursement directly to a Maya Business Deposit account. The process is fully digital, requiring only an active Maya Business account and regular use of Maya payment solutions.
- Cashalo: Offers loans ranging from ₱ 1,000 to ₱ 7,000 with interest rates starting at 3.95%. It provides fast approval through a mobile app and requires no collateral, making it a convenient option for startups needing quick access to small amounts of capital.
- Digido: Caters to borrowers seeking ₱ 1,000 to ₱ 25,000 loans and even offers a 0% interest rate for new clients. Its instant online approval process and minimal requirements make it an attractive choice for entrepreneurs looking for hassle-free financing.
- Blend.ph: Targets businesses needing ₱ 100,000 to ₱ million, with monthly interest rates ranging from 1% to 8%. It uses risk-based pricing and provides flexible business loans with repayment terms of up to 36 months, making it suitable for startups with bigger capital requirements.
- JuanHand: Provides loans between ₱2,000 and ₱25,000 with interest rates ranging from 9% to 12%. This app-based platform is designed for startups and SMEs, offering quick release of funds to support immediate business needs.
By exploring these options, startups can find unsecured loans that fit their needs.
Also Read: How to Get an LLC Small Business Loan in The Philippines
Now that you’ve explored the top unsecured loan options for startups, the next step is understanding how to apply quickly and correctly.
Step-by-Step Guide to Applying for an Unsecured Online Business Loan
Applying for an online business loan is now faster and more accessible for startups in the Philippines. With digital platforms and minimal documentation, you can secure funding without collateral by following a straightforward step-by-step process. Here’s how it typically works, from registration to disbursement.
1. Fill Out the Registration Form
Start by completing the registration form, which you can find on the lender’s website or via their fast cash loan app. Make sure to provide accurate personal and business information to avoid any delays.
2. Submit Required Documents
Unlike traditional banks that require extensive financial paperwork, fintech lenders often accept scanned or photographed copies of the necessary documents. You'll need to provide key financial details like income, cash flow, and business activity. Some lenders may also use alternative data to evaluate eligibility.
3. Approval Timeframe
Fintech companies, like N90, offer a much faster approval process than traditional banks. While banks may take weeks or months due to manual processing, fintech lenders can approve your loan within just two business days.
Some lenders may approve your application in as little as five minutes, while others may take up to 24 hours.
4. Loan Offer and Disbursement
Once your loan is approved, you'll receive the details, including the loan amount, interest rate, repayment terms, and any other relevant information. Funds are typically disbursed within 1-3 days, allowing you to access the capital quickly.
However, the overall timeline may vary depending on the complexity of your application and the lender’s processing speed.
Factors to Consider When Choosing a Loan
When you're looking at unsecured loans for your startup, there are a few key things to consider to make sure you’re getting the best deal. Here’s what to keep in mind.
1. Interest Rates
Interest rates are among the most important factors because they determine how much your loan will cost in the long run. These rates can vary depending on the lender and the specifics of the loan.
For example, LendBank and Security Bank in the Philippines may offer different rates based on the loan’s term and details, so it’s a good idea to shop around and compare.
2. Repayment Terms
How you repay your loan is just as important as the loan itself. Startups often have unpredictable cash flows, so flexible repayment options can make a big difference.
Some lenders offer weekly or bi-weekly payments, while others, like Maya Flexi Loans, let you access funds only when you need them, which helps you manage your cash flow more easily.
3. Lender Credibility
Make sure the lender you choose is credible and reliable. Look for lenders regulated by the Bangko Sentral ng Pilipinas (BSP) or other relevant authorities to ensure you're dealing with a trustworthy company. Customer reviews can also give you an idea of the lender’s reputation and service quality.
4. Loan Amount Flexibility
The amount of money you can borrow should suit your business needs both now and in the future. Some lenders, like Esquire Financing Inc., offer loans up to ₱ 10 million, but it’s worth considering whether the lender can adjust your loan amount if your business grows.
Companies like N90 offer scalable loan amounts, so your financing can evolve along with your business.
5. Hidden Fees
Also, be aware of hidden fees. Processing, late payment, and early repayment fees can add to your overall loan cost. Transparent lenders will always lay out all their terms and fees upfront, so you know exactly what you're getting into.
Finally, take advantage of online comparison tools to analyze all these factors and find a loan that works best for your startup’s financial situation.
How to Maximize the Benefits of Non-Collateral Business Loans for Your Startup
Non-collateral business loans are a practical way for Philippine startups to access fast, flexible funding without risking their assets. To get the most value from these loans, startups should take a strategic approach, choosing the right lender, understanding the terms, and using the funds wisely.
Tips to Maximize the Benefits:
- Prepare Strong Financials: Lenders focus on your creditworthiness and cash flow, so keep your financial statements and business plans up-to-date and accurate. This increases your chances of approval and may help you secure better rates.
- Use Funds Strategically: Allocate loan proceeds to high-impact areas such as inventory, marketing, technology upgrades, or hiring key staff. Prioritize spending that drives growth and improves cash flow.
- Monitor Cash Flow Closely: Non-collateral loans often have shorter terms and higher interest rates than secured loans. Track your cash flow to ensure you can meet repayments without straining your operations.
- Build Your Credit Profile: Timely repayments help build your business credit, making it easier to access larger loans or better terms in the future.
- Compare Lenders and Terms: Look for lenders that offer transparent terms, fair interest rates, and flexible repayment options. Private lenders and fintechs often provide faster approval and less paperwork than traditional banks.
How N90 Can Help Your Startup
N90 is a Philippines-based financial services company specializing in tailored lending solutions for SMEs. Here’s how N90 stands out:
Diverse Loan Products
We offer bridge loans for short-term needs, small business loans for expansion or inventory, and invoice factoring to get cash tied up in receivables. This flexibility lets you choose the solution that fits your business stage and goal.
Accessible for Different Business Sizes
Whether your annual revenue is below ₱15 million or above ₱150 million, we have credit limits and rates tailored to your scale. For example, businesses with revenues above ₱150 million can access up to ₱25 million at rates below 1% monthly, while smaller businesses can still qualify for meaningful funding at competitive rates.
Simple, Transparent Process
We emphasize trust and transparency. There are no hidden fees, and you’ll know all charges upfront. Our relationship-based approach means you get guidance and support throughout the loan process, especially if you’re a first-time borrower.
Cash Flow Solutions
With products like invoice factoring, we help you manage cash flow, ensuring you have working capital when you need it most.
Easy Eligibility
As long as your business is registered with the BIR, DTI, or SEC, and you have a valid ID, you can apply for a loan. This makes our loan accessible to a wide range of Philippine SMEs.
At n90, we offer tailored solutions, transparent terms, and relationship-focused support, making us a trusted financing partner for Philippine startups seeking fair, flexible funding.
Final Words!
Unsecured online business loans are a great option for startups in the Philippines. They provide quick and easy access to funds without needing collateral. This helps startups grow, manage cash flow, and build credit safely.
Before applying, make sure to understand your business needs and compare loan options. Choose a lender that is clear and trustworthy. With the right loan, you can take your business to the next level.
n90 offers flexible and transparent loans designed for startups and SMEs. Whether you need a bridge loan, small business loan, or invoice factoring, n90 can help with fast approvals and clear terms.
Apply now with n90 and start growing your business!
FAQs
1. Can startups with no credit history apply?
Yes, many online lenders and invoice factoring companies allow startups with little or no credit history to apply. Approval is often based on the creditworthiness of your customers (for invoice factoring) or your business performance, rather than your own credit score. This makes it possible for new businesses to access funding even if they haven’t built a strong credit profile yet.
2. What are the benefits of using invoice factoring for cash flow?
Invoice factoring offers several advantages for improving cash flow:
- Immediate Access to Cash: You get funds quickly, often within 24–48 hours, by selling your unpaid invoices instead of waiting for customers to pay.
- No Additional Debt: Factoring is not a loan, so you don’t add liabilities to your balance sheet.
- Predictable Cash Flow: It ensures steady liquidity, helping you cover operational costs and seize growth opportunities.
- Easier Approval: Approval is based on your customers’ creditworthiness, making it suitable for startups and businesses with limited credit history.
- Reduced Administrative Burden: The factoring company often handles collections, saving you time and resources.
- Supports Growth: With reliable cash flow, you can invest in expansion, inventory, or new projects without being held back by slow-paying clients.
3. Are there hidden fees with online business loans?
Online lending platforms in the Philippines are required by law to clearly disclose all charges, including interest rates and service fees, before you agree to a loan. However, some platforms may still impose additional or ambiguous fees, such as processing charges or penalties for late payments. Always review the full loan agreement and ask the lender to explain any unclear fees. If you encounter excessive or hidden charges, you have the right to negotiate, file a complaint with the SEC, or seek legal action to protect your rights as a borrower. Transparency and fairness are mandated, so choose lenders who are open about all costs.
