About lender
First Circle is a Philippine-based financial corporation that offers simple and affordable financing to businesses that cannot obtain regular bank loans. The lender, with its crediting, assists small businesses in overcoming temporary financial issues and supports innovative small company development approaches.
First Circle was established to assist SMEs in growth markets by funding their business-to-business (B2B) trade transactions. This aims to bridge large credit gaps and assist firms in growing through the provision of quick and flexible financial services. As per First Circle, strong businesses should have access to financing based on meritocracy or relationships and contacts.
Its customer base has increased since its public launch in 2016. They are currently providing SMEs from various industries with millions of dollars in financing through products that meet their needs, led by a team with experience in technology, financial services, and e-commerce.
First Circle is an official finance partner of the Department of Trade & Industry and is trusted by the Philippine government (DTI). The lender was also one of the first FinTech companies in the Philippines to be licensed by the Securities and Exchange Commission (SEC).
Pros and cons
Before requesting a loan from any financial institution, one should constantly weigh the company's advantages and disadvantages to make the best choice.
Pros
- There are no requirements for collateral or a minimum salary.
- They offer quick approval and disbursement, and the loans are processed in just two to five days.
- They offer credit at a low-interest rate in comparison to their competitors.
Cons
- The bank is unsuitable for large businesses as its main goal is to target SMEs.
- The bank offers very limited loan products.
Loan conditions
To be approved, an applicant must meet First Circle's eligibility conditions for a loan. To be eligible, the applicant must be between 21 to 60 years old. The following documents are required: a certificate of formal identification, billing proof, certificates from the DTI or the SEC, certificate of BIR, GIS, invoice, or verified purchase order. Any business applying for a loan should be located in the serviceable region provided by the lender and have yearly revenue of ₱5,000,000. The lender currently does not provide loans to construction or travel-related businesses. Please, note that this is not the final list, and other papers and documentation may be required during the credit evaluation.
Funding a loan
First Circle has simplified its loan process. There are no hidden fees, and the online application offers simple form submission and quick loan processing, with funds arriving in your account in around five days. You can apply for a loan using a purchase order or invoice financing loan, and you will need to show these documents to be approved. You may be eligible for a loan of up to ₱5,000,000 for a revolving credit line. The loan term is 15 days to 6 months, with a monthly interest rate starting at 1.39% and a fixed processing charge of 1.99% of the entire loan amount.
First, you must fill out the online form to apply for a loan. Once completed, a member of our customer care team will call you to discuss the application's processes and criteria, and you will receive feedback on your application within five business days. The lender currently offers two lending products: revolving credit line and PhilGEPS project financing.
Revolving credit line
This loan product is similar to a business credit card due to its flexible borrowing conditions and credit limit. Using this credit line, you can take a loan and then repay it when you want to re-establish your full credit limit. You can re-use this strategic credit utilization as many times as you want. You can also make lump sum repayments whenever you receive the funds. The lender provides credit lines of up to ₱5,000,000. The interest rates start at 1.39% per month. However, if the borrower can present a better deal for a non-collateral SME loan, the bank guarantees to beat that price by offering 10% lower rates. The loans are processed within two days after you apply.
PhilGEPS project financing
This product focuses on service providers and business operators looking for someone to finance their upcoming projects. Borrowers are offered funding certification, strengthening and supporting their project bids by portraying legitimacy. The lender offers funds for up to 70% of the cost. The borrower can also make lump sump or installment-based repayments after completing the project.
