Choose a country
Philippines
Select a city
Select a city
Additional Information
English (PH)
Select country
Choose a country
Philippines
Australia
Canada
España
México
Philippines
United States
Việt nam
Казахстан
Россия

Franchise Loans. Apply for Personal Loans Online

Embark on your entrepreneurial journey in the Philippines with a franchise loan. Quick online application, tailored for both experienced and first-time business owners. Start building your dream business today.
Offers: 4
Updated:
10.02.2024
20:27
MoneyCat
Instant cash loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
₱20000
Rate
i

Effective interest rate on the product

11,9% per month
Term
i

Loan term for the financial product

6 months
DIGIDO
Instant online loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

4
Recommended FinScore™
0
300
650
1000
10500.00 – 25000.00 ₱
Rate
i

Effective interest rate on the product

from 11.90 %
Term
i

Loan term for the financial product

3 days – 6 days
Kviku
Online Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
500.00 – 25000.00 ₱
Rate
i

Effective interest rate on the product

to 0.16 %
Term
i

Loan term for the financial product

2 months – 6 months
Get the money you need online
Get the money you need online

Use our quick loan matching system with a free credit check!

TALA
Tala Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

2.95
Recommended FinScore™
0
300
650
1000
1000.00 – 15000.00 ₱
Rate
i

Effective interest rate on the product

to 0.50 %
Term
i

Loan term for the financial product

21 days – 1 months
Franchise Loans Calculator of February 2024

Your ideal online loan with a free credit check in the Philippines, just a few clicks away.

Loan amount
i

Enter the desired loan amount

PHP
PHP
10000 ₱
2000000 ₱
Loan term
i

Specify the loan term for the calculation

months
days
3
120
City
Reviews
Savii
1
No comment yet coz im not yet approved in my application
Review
DIGIDO
5
very fast
Review
Kviku
4
Please address my concerns regarding my loan application and its processing...
Review
Kviku
1.6
Warning: This lender is predatory and extremely dangerous. Do not use this app for loans as they will trap you with impossible and maliciously high interest rates...
Review
Kviku
1.4
I was charged an excessive amount by KVIKU. My last loan was approved on November 25th, 2022 for 5000 pesos...
Review
Kviku
1.8
High Interest Rate. They approved my auto loan without discussing repayment options in full. Instead, they sent me a contract with scheduled payments, which is nowhere near the advertised 0...
Review

What are Franchise Loans?

Franchise loans in the Philippines refer to specialized financial arrangements designed to support entrepreneurs who wish to invest in a franchise business. These loans, also known as franchise business loans, are a type of business loan provided by various lending institutions such as commercial banks and local banks. Entrepreneurs can also explore alternative lenders for franchise financing.

Features

  1. Franchise Loan Types. Franchise loans encompass various types, including business loans, credit lines, and commercial bank loans. These options cater to the diverse financial needs of entrepreneurs seeking to invest in a franchise.

  2. Lending Institutions. Entrepreneurs can obtain franchise loans from different sources, such as local banks, commercial banks, and alternative lenders. The availability of options allows borrowers to explore the most suitable financing solution for their franchise venture.

  3. Application Process. The process of securing franchise loans involves a comprehensive application process. Prospective franchisees are required to submit a detailed business plan, along with necessary documentary requirements, to demonstrate their readiness and viability as borrowers.

  4. Credit Scores. A good credit score is a significant factor in the approval of franchise loans. Lenders assess the creditworthiness of borrowers to determine their ability to repay the loan. A positive credit history can result in more favorable terms, including lower interest rates.

  5. Collateral Requirements. Depending on the lender, franchise loans may require collateral to secure the funding. This collateral can be in the form of assets, property, or other valuable items. Entrepreneurs should be prepared to provide necessary collateral to increase their chances of loan approval.

Pros and Cons

Pros

Access to Established Brands. Franchise loans enable entrepreneurs to invest in well-known and established brands, providing them with the opportunity to benefit from the brand recognition and customer base associated with the franchise.

Franchisor Financing Options. Some franchisors offer financing assistance to franchisees, making it easier for individuals to secure the necessary funds. This can streamline the financing process and create a mutually beneficial relationship.

Working Capital Support. Franchise loans often include provisions for working capital, ensuring that franchisees have the financial resources needed to cover day-to-day operational expenses and promote the sustained growth of their businesses.

Structured Business Model. Franchise agreements come with a predefined business model, including established operational procedures and support from the franchisor. This structured approach can assist franchisees, especially those new to entrepreneurship, in running a successful business.

Cons

Higher Interest Rates. Franchise loans may come with higher interest rates compared to other forms of financing. This can increase the overall cost of the loan and impact the profitability of the franchise business.

Franchise Fees and Royalties. Franchise agreements typically involve ongoing fees and royalties paid to the franchisor. These additional costs can reduce the franchisee's profit margins and affect the overall financial performance of the business.

Limited Flexibility. Franchisees must adhere to the terms and conditions outlined in the franchise agreement, limiting their flexibility in decision-making and business operations. This lack of autonomy can be a drawback for entrepreneurs seeking greater independence.

Eligibility Requirements and Collateral. Meeting the eligibility requirements for franchise loans, including credit scores and collateral, can be challenging for some entrepreneurs. This may limit access to financing for those who do not meet the stringent criteria set by lenders.

How to Get a Franchise Loan?

Apply for a loan

  1. Prepare Your Business Plan. Develop a comprehensive business plan outlining your franchise venture, including financial projections, marketing strategies, and operational plans.

  2. Research Lenders and Loan Options. Explore different lenders, including commercial banks, local banks, and alternative financing sources. Understand the specific franchise loan options they offer, including terms, interest rates, and eligibility criteria.

  3. Check Eligibility and Gather Necessary Documents. Review the eligibility requirements of your chosen lender. Gather necessary documentation, including your business plan, financial statements, personal and business tax returns, and any other documents specified by the lender.

  4. Submit Loan Application. Complete the loan application provided by the lender. Attach all required documents and provide accurate information about your financial history and the franchise opportunity.

  5. Collateral and Terms Negotiation. If required, be prepared to discuss collateral options with the lender. Collateral may include personal or business assets. Negotiate the terms of the franchise loan, including interest rates, repayment schedules, and any fees involved.

Requirements and Conditions

Requirements

  1. Creditworthiness. A good credit score is often a top requirement. Lenders assess the borrower's credit history to evaluate their ability to manage debt and repay the loan.

  2. Business Plan. A well-prepared business plan detailing your franchise venture is crucial. This includes financial projections, marketing strategies, and operational plans.

  3. Financial Statements. Lenders typically request personal and business financial statements, including income statements, balance sheets, and cash flow statements.

  4. Tax Returns. Submission of personal and business tax returns is a common requirement. This helps lenders assess your financial stability and compliance with tax obligations.

  5. Collateral Options. Depending on the lender, providing collateral may be necessary. This can include personal or business assets that serve as security for the loan.

Conditions

  1. Interest Rates. Franchise loans typically come with interest rates, which can be fixed or variable. The rates may vary based on factors such as the borrower's creditworthiness, the lender's policies, and prevailing market conditions.

  2. Repayment Terms. The repayment terms outline how the borrowed funds will be repaid. This includes the duration of the loan (term), frequency of payments (monthly, quarterly), and any specific conditions related to early repayment.

  3. Fees and Charges. Franchise loans may have associated fees and charges, such as loan origination fees, processing fees, and penalties for late payments. It's crucial for borrowers to understand these charges to avoid any surprises.

  4. Franchise Agreement Compliance. Lenders may stipulate that franchisees must adhere to the terms and conditions outlined in the franchise agreement with the franchisor. Compliance with the franchisor's requirements is often a key condition.

Best Places to Get a Franchise Loan

  • Security Bank is one of the major commercial banks in the Philippines. They offer various financial products and services, including business loans. For franchise financing, Security Bank may be a viable option, and interested entrepreneurs should inquire about their business loan programs.

  • UCPB is another prominent bank in the Philippines. UCPB BizEasy is a business loan program tailored for small and medium-sized enterprises (SMEs). Entrepreneurs exploring franchise loans can consider UCPB for their business financing needs.

  • Landbank of the Philippines is a government-owned financial institution that supports the agricultural and rural sectors. While Landbank primarily focuses on agricultural financing, it also provides various loan programs for businesses, including SMEs. Entrepreneurs looking for franchise loans can explore Landbank's offerings.

  • Tonik Bank is a digital-only bank in the Philippines that focuses on providing innovative and accessible financial services. While it may not have a long history compared to traditional banks, it's worth checking if they offer business loans, including franchise financing.

Best Places to Get a Loan Today

Digido

Apply for a loan

Digido is an online loan company in the Philippines, offering non-collateral cash loan services. They provide a fully automated online portal for a seamless loan application process. Key features include:

  • Automated application process.
  • Loans for various purposes, including emergency and OFW loans.
  • No collateral required.
  • Online loan calculator.
  • Transparent interest rates, with a commitment to fair lending practices.
  • Loan accessibility for unbanked individuals.
  • Secured operations, fully licensed and registered under the SEC.

Digido

MoneyCat

Apply for a loan

MoneyCat is an online payday loan provider in the Philippines, offering efficient financial solutions with an easy-to-navigate online registration form. Their features include:

  • Swift approval process, usually within 24 hours.
  • Flexible loan amounts ranging from PHP 500 to PHP 20,000.
  • Convenient application methods via website or mobile app.
  • First loan free of charge for new users.
  • Licensed by the SEC, ensuring reliability and legitimacy.

MoneyCat

Finbro

Apply for a loan

Finbro is an online lending platform providing quick loans with durations of up to 12 months and amounts ranging from ₱1,000 to ₱50,000. Their service includes:

  • Online application process that can be completed in 15 minutes.
  • Transparent conditions with no extra costs.
  • 24/7 service availability.
  • Data protection for users.
  • Higher interest rates for repeat loans.
  • No mobile app for accessibility.

Finbro

Kviku

Apply for a loan

Kviku is an online lending institution known for providing short-term loans with a fully automated online service. Their main features are:

    • Simple and user-friendly loan procedures.
    • 24-hour approval process.
    • No hidden fees or charges.
    • 100% online lending experience.
    • Competitive interest rates at 0.16% daily.
    • Flexible repayment terms up to 180 days.
    • Registered and authorized by the SEC, ensuring reliability.

Kviku

Ways to Receive the Money

  1. Bank Transfer. The most common method is a direct bank transfer. Once the franchise loan is approved, the lender transfers the funds directly into the borrower's designated bank account. This method ensures a quick and secure transfer of funds.

  2. Check Issuance. Some lenders may issue a check for the approved loan amount. The borrower can then deposit the check into their bank account. This method is less common in today's digital banking environment but may still be used by certain lenders.

  3. Wire Transfer. For larger loan amounts, lenders may opt for a wire transfer. This is a secure electronic transfer of funds between banks, ensuring a quick and reliable delivery of the loan proceeds to the borrower's account.

  4. Digital Wallets. In some cases, lenders may offer the option of transferring funds to the borrower's digital wallet. Digital wallets are increasingly popular for quick and convenient financial transactions.

Things to Pay Attention To

  1. Monthly Interest Rate. Pay close attention to the interest rates associated with franchise loans in the Philippines. Understand whether the rates are fixed or vary depending on market conditions. Additionally, be aware of the monthly interest rate, as it directly impacts the cost of borrowing.

  2. Eligibility Requirements. Familiarize yourself with the eligibility requirements set by lenders. Ensure that you qualify for a franchise loan by meeting criteria such as creditworthiness, established company status, and adherence to necessary requirements.

  3. Collateral. Determine whether the franchise loan requires collateral. Understand the types of assets, such as home equity, business property, or personal funds, that can be used as collateral. Be prepared to provide collateral to secure the loan.

  4. Loan Terms. Review the terms of the franchise loan, including the duration or term of the loan. Evaluate whether the terms align with your business plans and financial capabilities.

  5. Alternative Lenders. Explore options beyond traditional banks. Consider alternative lenders offering franchise financing. Remember that there's more than one way to secure funding, and alternative lenders may provide different terms and advantages.

  6. Franchisee Expectations. Understand the expectations set by the franchisor, especially regarding franchise fees and royalties. Assess the significant advantages offered by the franchisor, such as established branding and support services, which contribute to the overall success of the franchisee.

How to Repay a Franchise Loan?

  1. Understand Repayment Terms. Familiarize yourself with the terms outlined in your franchise loan agreement, including the repayment schedule, interest rates, and any associated fees.

  2. Set Up a Dedicated Account. Establish a dedicated bank account for loan repayments. This helps in organizing funds specifically for loan obligations and ensures timely payments.

  3. Automate Payments. Set up automatic payments with your bank to ensure consistency. Automating payments reduces the risk of missing deadlines and incurring late fees.

  4. Monitor Cash Flow. Keep a close eye on your business's cash flow to ensure that funds are available for loan repayments. This proactive approach helps in avoiding financial strain.

  5. Communicate with Lender. Maintain open communication with your lender. If you encounter challenges or anticipate difficulties in repayment, discuss potential solutions or restructuring options with the lender to avoid issues.

Reasons for Getting Rejected for a Franchise Loan

  1. Insufficient Creditworthiness. One of the primary reasons for rejection is a lack of creditworthiness. If the borrower has a low credit score or a history of financial issues, it can negatively impact their ability to qualify for a franchise loan.

  2. Failure to Meet Eligibility Requirements. Borrowers may face rejection if they do not meet the eligibility criteria set by lenders. This could include factors such as insufficient business experience, inability to provide necessary requirements, or not meeting the minimum financial stability required.

  3. Inadequate Collateral. If a borrower is unable to provide sufficient collateral to secure the loan, it may lead to rejection. Collateral, such as personal assets or business property, is often required to mitigate the lender's risk.

  4. Unrealistic Business Plan. Lenders assess the viability of the business plan presented by the borrower. If the business plan is unrealistic, lacks detail, or does not demonstrate the potential for profitability, it may result in rejection.

  5. High Debt-to-Income Ratio. A high debt-to-income ratio, where the borrower's existing debts are substantial compared to their income, can be a red flag for lenders. This may indicate a potential inability to manage additional debt, leading to rejection.

Alternatives

  1. Bank Term Loans. Bank term loans are a traditional financing option where a borrower receives a lump sum amount upfront and repays it over a predetermined period with interest.

  2. Bank Lines of Credit. A bank credit line provides businesses with access to a predetermined credit limit. Borrowers can draw funds as needed and repay them based on the terms agreed upon with the bank.

  3. Equipment Loans. Equipment loans specifically finance the purchase of business equipment. If a franchise requires significant equipment investments, this option allows borrowers to secure financing for these assets, typically with the equipment serving as collateral.

  4. Invoice Financing. Invoice financing, or accounts receivable financing, involves using outstanding invoices as collateral to secure a loan. This can be beneficial for small businesses with irregular cash flow, providing immediate funds tied to unpaid customer invoices.

Editorial Opinion

Franchise loans in the Philippines present both opportunities and considerations for aspiring entrepreneurs. On the positive side, these financial instruments offer a structured means of accessing capital to initiate or expand a franchise small business. The support from established franchisors, combined with the financial backing from lenders, can enhance the likelihood of business success. However, potential borrowers should exercise caution and conduct thorough research. It's imperative to understand the terms, interest rates, and eligibility criteria associated with franchise loans to make informed decisions. A carefully crafted business plan, coupled with a clear understanding of the franchise agreement, is crucial for navigating the complexities of franchise financing. Ultimately, while franchise loans can be a valuable resource, individuals should approach the process with diligence and ensure alignment with their business goals and financial capabilities.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender in the Philippines

  1. Ensure that the lender is registered with the Securities and Exchange Commission (SEC) of the Philippines.

  2. Investigate if the lender is a member of recognized industry associations in the Philippines, such as the Chamber of Thrift Banks or the Philippines Finance Association.

  3. Carefully examine all terms and conditions of your loan contract. This includes understanding the repayment schedule, fees, and any penalties for late or missed payments.

  4. Payday loans can have high-interest rates. Make sure the contract clearly outlines the interest rate and total cost of the loan, including any processing fees or additional charges.

  5. Familiarize yourself with your rights regarding cancellation. In the Philippines, consumers may have the right to rescind the loan within a specific period after signing the agreement.

  6. Research the lender's reputation through customer reviews, complaints, and feedback available online.

Methodology

In Finanso, we've carried out a comprehensive analysis of over 50 lenders in the Philippines, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

FAQ

Can I start a franchise with a loan?

Yes, starting a franchise with a loan is a common practice. Many entrepreneurs use franchise loans to secure the initial capital needed for franchise fees, equipment, and operational expenses. It's essential to carefully evaluate the terms, interest rates, and eligibility criteria of the loan before proceeding.

Can you get a business loan in the Philippines?

Yes, it is possible to obtain a business loan in the Philippines. Various financial institutions, including banks and alternative lenders, offer business loans to entrepreneurs. Eligibility criteria may include a good credit score, a solid business plan, and compliance with necessary requirements. Prospective borrowers should explore different lenders to find a suitable business loan that aligns with their needs.

What are the typical eligibility requirements for obtaining a franchise loan in the Philippines?

Eligibility requirements for franchise loans vary among lenders, but common criteria include a good credit score, a well-established business plan, financial stability, and adherence to necessary documentation. Lenders may also consider the borrower's business experience and the specific requirements outlined by the franchisor.