What are the benefits of funding your small business with a non-collateral loan?
- Get Qualified Easily
- Simple Requirements
- No Assets To Lose
- Short Term Solution
- Less Risk, Fast Money
Regardless of the nature of the enterprise, business owners need a source of funding. This especially goes for those that are just starting their business. Do you not have the leisure of enjoying a large sum of capital to start your small business? There are plenty of financing companies that lend money without any collateral needed.
As a small business owner, you should be knowledgeable about the available financing options that can help you grow your business. From getting qualified easily to obtaining money fast, here are some of the benefits of small business loans. Particularly ones that do not require any collateral for OFWs and seafarers alike.
Get Qualified Easily
For OFWs and seafarers with a spouse or family member back home who need support, consider setting up a small business for them. Small businesses that are easily funded through non-collateral loans include setting up a small village grocery store, a food cart, or a franchise. Take a look at these lists of requirements to know whether you are qualified or not.
OFW Non-Collateral Loan Eligibility
- Filipino Citizen
- Age 21 to 59
- Purpose of loan for business (can also be for education, renovation, medical purposes, purchase of vehicles, etc. except for placement fee)
- Minimum salary of PHP 25,000
- Departure date within 30 days
- Schedule of vacation should not be within 6 months
Seafarers Non-Collateral Loan Eligibility
- Filipino Citizen
- Age 21 to 59
- Purpose of loan for business (can also be for education, renovation, medical purposes, purchase of vehicles, etc. except for placement fee)
- Minimum salary PHP 15,000 with Manning Agency
- To be deployed in 30 days
- Schedule of vacation should not be within 3 months
Simple Requirements
Applying for cash loans without collateral demands the submission of a few major requirements. From the latest proof of remittances for OFWs to the seaman’s book for seafarers. Take a look at the following requirements to have an idea of what to bring when you finally decide to seek assistance from a reliable financing service company.
OFW Non-Collateral Loan Requirements
- Valid Passport
- Work Visa / Work Permit
- POEA, Validated Contract or Certificate of Employment/Payslip/COE
- Flight Details
- Authorization letter
- 3 Months Latest Proof of Remittances
- Last Arrival and Last Departure Stamp
Seafarers Non-Collateral Loan Requirements
- Valid Passport
- POEA Validated Contract
- Seafarer’s Identification and Records Book (Seaman’s Book)
- E Registration
- History of Embarkation and Disembarkation or Sea Service Record
- Allotment Certificate and Bank statement
No Assets To Lose
The interest rates, the duration of the loan, and the amount are all negotiable. This makes these types of loans flexible. For instance, do you happen to find yourself caught in a situation wherein you know you will be unable to repay the loan at the right time? You can easily request an adjustment to your terms. Apart from the flexibility of terms, you are not at risk of losing an asset. Moreover, your property is not at risk of being repossessed to recover the losses from your unpaid loan.
Short Term Solution
Non-collateral based loans, also known as unsecured loans, are suited for those who are looking to borrow the minimum loanable amount dedicated to the type of loan. They must also be willing to repay the loanable amount in a short time span, approximately 3 to 6 months. A non-collateral loan may be granted to an OFW or seafarer for the purpose of a business venture. Other reasons include the purpose of funding a child’s education, renovation of the house, emergency and medical purposes, as well as the purchase of vehicles.
Less Risk, Fast Money
Owning a small business in the Philippines can be a difficult source of income. Regardless of whether you are in the retail or food industry, you are prone to several challenges, such as not being able to target the right customers. With that in mind, you might be needing operational cash flow to keep funding your business.
Great cash flow helps you establish a solid foundation for your business and borrowing a loan is your ticket to achieving stability of operating capital. In addition to that, there is no need to go through property appraisals since there is no collateral required in applying for a loan. With that, financing services companies can process and provide loans faster.
Key Takeaway
Have you realized that your income as an OFW or a seafarer is not enough to support your entire family to have a comfortable life back home? It may be time to embark on new business ventures. Seek out capital assistance from financing services to fund your small business in the Philippines.
Enjoy the benefits of small business loans and your hard-earned money abroad with your family. While you are away rendering services in another country, have a family member man the business for you. With all the enterprise options available in the market, you will surely have a venue to obtain extra money to fund the family’s needs.
- Truck Maintenance Checklist: 14 Ways to Keep Your Truck in Top Shape - December 20, 2023
- How to Stop Emotional Spending: Exploring 7 Common Triggers - November 9, 2023
- How to Build an Emergency Fund: 6 Steps to Budgeting for Unforeseen Expenses - October 31, 2023
