Starting your own business is a dream for many Filipinos, but let’s be real—capital is often the biggest hurdle. Whether you’re planning to open a sari-sari store, a food cart, or a tech startup, funding is crucial to getting your business off the ground. The good news? There are plenty of ways to secure financing, even without a huge savings account. Here’s a practical guide to funding your small business in the Philippines, featuring options that fit our local context.
1. Ipon Mode: Using Your Savings
If you’ve been saving up from your sweldo or past rakets, good job! Using your own money means you won’t owe anyone anything—no interest, no deadlines, no stress (except the usual negosyo headaches).
| ✅ Pros | ❌ Cons |
| No utang, no interest! | Limited capital (baka kulang for expansion) |
| Full control over your business decisions | High personal risk—kung malugi, ubos ipon |
| Less pressure to hit sales targets right away | Might take longer to scale up your business |
Tip: If you’re using savings, make sure you don’t drain your emergency fund. Running out of cash for unexpected expenses is a recipe for stress!
2. Small Business Loans (Bank Loans & Government Programs)
Getting a small business loan is a popular way to secure capital. Many banks and government institutions like DTI, SSS, and GSIS offer loans specifically for MSMEs (Micro, Small, and Medium Enterprises).
| ✅ Pros | ❌ Cons |
| Higher capital for scaling up | Strict application requirements (business plan, financial records, etc.) |
| Lower interest rates from government programs (DTI P3, SSS Business Loan, etc.) | Approval takes time—hindi ito para sa nagmamadali! |
| Builds your credit history for future funding | You need to pay on time or risk penalties |
Tip: Check out government loan programs since they usually have lower interest rates compared to banks.
3. Venture Capital & Angel Investors
If you’re building a scalable business with high growth potential, venture capital (VC) or angel investors might be an option. They provide funding in exchange for a share of your company.
| ✅ Pros | ❌ Cons |
| Large capital, perfect for expansion | You give up partial ownership (may say na rin sila sa negosyo mo!) |
| Business expertise and mentorship from investors | Not ideal for small businesses or traditional retail |
| Networking opportunities (potential partners, clients, and more funding!) | Investors expect high returns, so pressure is real! |
Tip: If you’re pitching to investors, prepare a solid business plan and practice your “elevator pitch.” Investors won’t fund you if your idea isn’t convincing!
4. Friends & Family: The ``Pa-Bigas Loan`` Approach
Huwag maliitin ang tulong ng pamilya at tropa! If you have loved ones willing to invest in your negosyo, this can be a great way to start—as long as you set clear agreements.
| ✅ Pros | ❌ Cons |
| Flexible payment terms (pwedeng hulugan, no interest!) | Money + relationships = potential drama |
| Less paperwork and faster access to funds | Expectations might not be aligned |
| Emotional support from people who believe in you | Harder to separate personal and business matters |
Tip: Even if it’s family, put everything in writing. A simple contract or agreement avoids misunderstandings down the road!
5. Crowdfunding: ``Piso Para sa Negosyo``
If you have a unique business idea, why not let the public fund it? Platforms like GoGetFunding, or Spark Project let you raise money from strangers who believe in your vision.
| ✅ Pros | ❌ Cons |
| No need to pay back (unless you promise rewards) | Success is not guaranteed—mahirap mag-viral! |
| Great for testing market interest before launching | Requires strong marketing and promotion |
| Builds a community of loyal customers | Platforms take a percentage of your funds |
Tip: Make your campaign engaging and authentic! Use videos, tell your story, and offer rewards to attract more backers.
6. Credit Cards: ``Swipe Now, Pay Later``
For small funding needs, your credit card can be an option—especially for purchasing equipment or initial inventory.
| ✅ Pros | ❌ Cons |
| Instant access to funds (walang pila sa bank!) | High-interest rates if unpaid on time |
| Reward points or cashback for business purchases | Easy to overspend (ingat sa impulse buys!) |
| Some cards offer 0% installment plans | Can negatively impact your credit score if mismanaged |
Tip: Use credit cards wisely and only for essential expenses. Always pay the full amount before the due date!
7. Private Lenders and Online Loan Apps
If you need fast cash, private lenders and online loan apps provide quick approvals with minimal requirements.
| ✅ Pros | ❌ Cons |
| Fast processing and approval | Interest rates can be high |
| Minimal documentation required | Not all lenders are legit—ingat sa scams! |
| Convenient online applications | Loan amounts might be limited compared to banks |
Tip: Stick to legit, SEC-registered lenders and read the terms carefully!
8. Sangla OR/CR: Pawn Your Car Without Giving It Up
Need quick cash but don’t want to lose your car? OR/CR pawning lets you get a loan using your vehicle as collateral—without surrendering it.
Many Filipinos now turn to private lenders and loan apps for quick financing.
| ✅ Pros | ❌ Cons |
| High loan amounts | Risk of repossession – If you fail to repay, the lender can take your car. |
| No need to give up your car—you can still use it to earn! | . |
| Fast approval – Some lenders process loans within a day. |
Tip: Only take this route if you have a clear repayment plan.
9. Sangla Titulo: Using Land or Property as Collateral
If you own a piece of land or a house, you can use your property title (titulo) to secure a loan. This is one of the most common funding methods in the Philippines.
| ✅ Pros | ❌ Cons |
| Higher loan amounts – Perfect for bigger business investments. | Risk of losing your property – If you default, you may lose ownership. |
| Lower interest rates – Compared to unsecured loans. | |
| Longer repayment terms – Making it easier to manage. |
Tip: Borrow only what you can afford to repay to avoid losing your property.
Final Thoughts
Funding a small business in the Philippines can be challenging, but with the right strategy, it’s possible to turn your dream into reality. Whether you go for savings, loans, investors, or alternative funding, the key is to choose the option that fits your financial situation and risk tolerance.
Remember, securing capital is just the first step. Managing it wisely is what makes a business succeed. Plan your finances, track your expenses, and ensure every peso you borrow contributes to growth.
Fast, Flexible Financing for Your Business
The right funding fuels growth. With Sangla OR/CR and Sangla Titulo, you get quick access to capital while keeping your assets secure. Whether you’re starting fresh or expanding, SAFC makes it simple.
Let’s grow your business—inquire today and build a #brighter2morrow2gether!
