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5 ways to improve your chances of getting that loan

5 ways
By Jet Ramos-Cruz |

Entrepreneurs need start-up capital to register their business, set up shop and begin operations. Oftentimes, this capital is sourced from personal savings, credit cards, and loans from family and friends. But if additional money is needed and your sources have already run dry, what can you do next?


Look for other available sources of funds. Banks, lending companies, and even cooperatives offer several types of loans catering to different customers and needs. But since your business is new—and lenders consider newbies as a risky investment—consider doing the following to improve your chances of securing much-needed funds:


Assess the strengths and weaknesses of your application. Before even trying to shop for loan products, take stock of your status. Don’t have as yet strong operations and stable financials? Off a piece of property or deposit account as collateral to secure the loan, or other sources of income such as your regular salary, lease agreements, or stock and bond certificates. Remember, lenders are most interested in how you can repay the loan.



List down what you want from your loan. How much money do you need? What is the nature and purpose of your loan? Do you want to pay with equal monthly amortizations, or do you want a revolving credit line that allows interest payments for a certain period?

Knowing the answers to these questions will help you find the most suitable loan package, says Donaldson Jao, group head of Small and Medium Enterprise Banking for Philippine Savings Bank (PSBank).


Be familiar with different loan providers and products. Don’t just go to large commercial banks; you may have a better chance of securing a business loan with lending companies, says Eillen Barredo-Mangubat, general manager of Asialink Finance Corp.

When going to loan providers, don’t forget to ask about the products they offer. In addition, ask about the following:


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