Embarking on any small business venture often requires strategic financial planning and assistance. It’s common for entrepreneurs to find themselves taking out a business loan for the necessary capital to fuel the growth of their SME or to take their chances on attractive business opportunities. While traditional banks are considered the go-to institution for such financing assistance, many of their business banking loan products are still designed to cater to larger enterprises. This leaves many small business owners in the challenging position of hitting the pause button on their planned expansions.
Fortunately, the lending landscape in the Philippines has changed. There’s now a new generation of digital banks that provide businesses of all sizes with an opportunity to boost their ventures through simple and safe business banking loans, like Maya Flexi Loan.
But before diving into the application process—regardless of how streamlined it may be—you must be certain it’s the right path forward. This involves reflecting on your needs and other obligations to ensure a positive borrowing experience. Consider asking yourself these questions before taking out a small business loan.
What Is the Purpose of the Loan?
One of the first things you need to ask yourself is why you need the loan in the first place. Having a clear understanding of the purpose of the loan sets the foundation for a successful borrowing experience. Are you looking to purchase equipment, expand your operations, or increase your inventory? By pinpointing the specific purpose of the loan, you can better articulate your needs to potential lenders and ensure that the borrowed funds will contribute directly to your business's growth and success.
How Much Money Do I Need?
Determining the precise amount of funding required is another critical thing to do before borrowing funds. You must take into account all startup costs, operating expenses, and potential contingencies to arrive at a realistic figure. Overestimating or underestimating your financial needs can have significant implications on your business's ability to thrive, so it's essential to conduct thorough research and financial analysis before settling on a loan amount.
If you choose to take out a Maya Flexi Loan, you should know that you can unlock up to PHP 2 million in additional funding for your business. For most small businesses, this is often more than enough additional capital to supercharge their growth.
How Soon Do I Need the Funds?
Timing is often a crucial factor in business decisions, and borrowing money is no exception. Consider the urgency of your financial needs and assess how quickly you require access to the funds. Remember, different types of loans offer varying processing times.
Typically, the application process with traditional lenders may take several months. If you won’t need the funds until the next several months, you can get started on the application process and get prequalified. Otherwise, you may need to look for other lenders if you need to borrow immediately.
For example, Maya Business offers a more straightforward alternative through Maya Flexi Loan. Once you apply for a loan, you'll be able to know almost instantly if you've been approved to get the funds. Just make sure you have an active Maya Business Deposit account before applying.
What Does My Credit Profile Look Like?
Many lenders rely heavily on credit history and scores to assess borrowers' creditworthiness. Before applying for a small business loan, obtain a copy of your credit report from the Credit Information Corporation. This institution collects and maintains credit information from various sources, including financial institutions, utility companies, and government agencies.
Once you have a copy of your credit report, assess it and address any discrepancies or negative marks that could impact your creditworthiness. Then, take steps to improve your credit score, if necessary. A strong credit profile increases your chances of securing favorable loan terms and lower interest rates.
That said, Maya Flexi Loan is a credit line that lets you borrow money anytime to fund your business. Although passing credit evaluation requirements is one of the criteria for being eligible to take out a loan, you also just need to meet two other simple requirements. First, you must be an active Maya Business solution user, and second, you should have an active Maya Business Deposit Account.
Is a Business Loan the Best Option?
While a small business loan may seem like the most straightforward solution for financing your venture, you can also explore alternative funding sources. Consider utilizing your personal savings, seeking grants, securing funding from angel investors or venture capitalists, and leveraging crowdfunding. Each of these options offers unique advantages and can be a viable way to support your business.. Just keep in mind that each funding source has its advantages and disadvantages, so it’s best to carefully evaluate each option and determine which one aligns best with your business's needs and long-term goals.
What Is the Repayment Plan?
Before committing to a loan, develop a comprehensive repayment plan that aligns with your business's cash flow and revenue projections. Make sure to consider factors such as the loan term, repayment schedule, and any penalties for late or missed payments. This can help you make an informed decision about whether taking out a loan is the right choice in line with your business’s financial health. Additionally, be realistic about your ability to repay the loan and factor loan payments into your business budget to avoid financial strain down the line.
Note that when you take out a fairly large Maya Flexi Loan, you can divide this loan into separate loans. You will be given a monthly due date, and the payment schedule will be reflected on your Maya Business Manager dashboard.
Get Additional Business Funds with the Maya Flexi Loan
Sign up for Maya Business to take advantage of our industry-leading credit line product that can help you scale your small business. Signing up qualifies you for a no-collateral Maya Flexi Loan offer of up to PHP 2 million in just 3 months, a quick and easy way to obtain additional funding to further develop your business. Just use Maya Business as your primary processor for all of your wallet and card payments. The more you use our solutions, the better the loan offer will be.
When you set up a Maya Business account, you can also open a Maya Business Deposit account and use it as your settlement account. With an industry-leading 2.5% per annum interest rate, you’ll earn PHP 25,000 in interest per year on a PHP 1 million deposit. Furthermore, you’ll be able to send money to your partners and suppliers for free via InstaPay and PESONet, letting you save more.
Check out Maya Business today and take advantage of the benefits of Maya Business solutions.
