BDO Unibank offers different types of business financing available for individual professionals, partnerships, and corporations: term loans, lines of credit, working capital, and project financing.

Types of BDO Unibank Business Loans

1. Small and medium enterprises (SME) Loan.
• SME Term Loan is designed for long-term business investments. In most cases, you borrow a lump sum of money; for construction purposes, you may get money in tranches. The loan amount varies from 1M to 20 M; the loan term may be up to 10 years. You may get a 1-year fixing period interest rate of 6.75% rate.
• SME Ready Check is a revolving line of credit for business needs with ongoing access to funds. You pay interest only for the amount of money you use. Suits for short-term goals and unexpected expenses. The loan amount is from 3M to 20M. You can use up to 70% of your property value for business financing.
2. Project Finance Loan is a loan for eligible long-term projects that depend on cash flow.
3. A Term Loan is used for construction, expansion and modernization, and equipment purchasing. There are medium-term: 1— 3 years and long-term loans: 3 — 5 years with monthly or quarterly payments.
4. Working Capital Loans are loans and lines of credit for operational needs, one-time expenses, inventory or receivables financing, and other working capital funding.
5. Short-term loan of 1 year or less
6. Credit line for recurring funds drawing within a year
7. Export finance for exporters for pre- and post-shipment financing
8. Post-dated check discounting is a loan equal to the value of the PDCs
9. Inventory Financing with Trust Receipt (IFTR) to pay directly to your suppliers
10. Letters of Credit with Trust Receipt (LCTR) for domestic and international trade transactions.

How to apply for a BDO Unibank Business Loan?

You may apply for BDO Unibank SME Loan online or at any BDO Branch or BDO Loans Center.

To apply online:

1. Prepare your ID, income, and collateral documents according to the business type.
2. Visit BDO Unibank's official website and click the «Apply now» button on the SME loan page of the Business section.
3. Fill out an application form. Select your business type: individual/ sole proprietor or partnership/ corporation.
4. For individuals: borrower type and info, loan info, collateral, employment/business, financial info
5. For corporations: borrower type and info, majority stockholders/ partners and officers info, JSS/ mortgagor, loan, collateral, financial information.
6. If you have provided all necessary documents with the submitted application form, you will receive loan approval within ten banking days.
7. To apply for Project Finance Loan or find out more information, call 878-4354 or email talampas.julia@bdo.com.ph.
8. For Term Loan or Working Capital Loan application and details, call BDO Customer Center at 631-8000 or text BDOLOANS at 225678.

On the BDO website, you may download an application form for all types of BDO Business loans.

Requirements

To be eligible for an SME loan, you must:

• Be over 21 years old but under 70 years old at the end of the loan term
• Be a business owner of a sole proprietorship, partnership, corporation
• Have a business in profitable operation for at least two consecutive years
• Have a minimum annual gross sales of Php 1M
• Have a business within a BDO serviceable area
• Provide a filled-out application form
• Provide one valid ID
• Add a Marriage Contract, if applicable
• Provide Income Documents: for individual/ sole-proprietor or corporation/ partnership
• Add collateral and support documents.

Project Finance Loan is available for appropriate candidates, including greenfield projects and large facility or production expansions.

To qualify for Working Capital Loan and Term Loan, you must provide SEC Papers, Articles of Incorporation, By-Laws, the latest General Information Sheet, a List of top customers and suppliers with contact information, Bank Statements, and Collateral documents.

Pros and cons

Pros

• Online application
• Different loan purposes
• Various types of loans
• Loans tailored for business needs
• Different terms

Cons

• Collateral information is needed
• Wait over ten days for approval
• Online applications may not be available

How to make a payment?

Monthly loan payments for SME Term Loan are deducted from your preset BDO account via Automatic Debit Arrangement (ADA). For SME Ready Check minimum amount due is debited from your specified BDO account via ADA. Outstanding Balance may be repaid in part or full at any BDO branch nationwide. You should refund at least 5% of your availed amount quarterly.