Small Business Loan

With BDO SME Loan, you can immediately respond to prospects and manage challenges in your business.

Whether you want to expand your business or purchase additional inventory, BDO SME Loan offers you financing options with your business needs in mind.  We provide loan facilities that can be used to help you manage your cash flow more efficiently or acquire property and equipment for higher productivity.

Term Loan is a secured fixed-term loan facility that is ideal for acquiring property and equipment for your business.

SME Ready Check is a secured revolving credit line that you can use for your working capital requirements.

Flexible and Affordable Payment Terms

Choose the payment option that matches your cash flow.  Have the flexibility to pay your loan in 1 year or up to 10 years.

High Loan Amount

Borrow up to P20 Million or as much as 70% of the appraised value of your collateral.

Easy To Avail

BDO SME Loan is open to SMEs who have been in profitable operation for 2 consecutive years, with annual sales of at least P1 Million.  Simply use your real estate property (residential, mixed-use or commercial) as collateral when you apply.

BDO is ready to assist you in finding the right loan that fits your business needs and budget.

WHICH SME LOAN IS RIGHT FOR ME, TERM LOAN OR SME READY CHECK?

The SME Loan that is right for you will depend on the business requirement you need to address.

A Term Loan is ideal for scenarios that require a lump sum amount intended for a single purchase or investment.  An example of which is when you purchase additional equipment or commercial space.  Meanwhile, an SME Ready Check is recommended for situations that require multiple purchases over a period of one (1) year, like when you need to increase your inventory for peak months.

Furthermore, a Term Loan is payable in equal monthly amortization for a fixed term while an SME Ready Check will enable you to pay only the interest plus documentary stamps of the amount that you've used and settle the full principal and remaining interest upon maturity.

IF I AVAIL OF SME READY CHECK AND HAVE NOT DRAWN ANY CHECKS YET, DO I NEED TO PAY ANY INTEREST?

You pay interest for the availed portion only.

HOW MUCH CAN I APPLY FOR?

The minimum loan amount is P1 Million.

You can borrow up to P20 Million, depending on your collateral and its appraised value:

  • Residential - 70% of appraised value
  • Condominium - 70% of appraised value
  • Mixed-use - 70% of appraised value
  • Commercial - 60% of appraised value
  • Vacant Lot - 60% of appraised value

HOW LONG WILL IT TAKE TO APPROVE MY LOAN?

If you have submitted all the requirements along with your completely filled-out application form, you will receive a loan decision within 7 to 10 banking days.

WHAT ARE THE ACCEPTABLE COLLATERALS?

The following are acceptable, provided that the property is free from liens & encumbrances and is located within BDO serviceable areas:

  • Single-Detached
  • Townhouse
  • Duplex
  • Condominiums
  • Vacant Lots
  • Apartments
  • Commercial Properties
  • Mixed-use (Residential & Commercial)

SINCE I AM REQUIRED TO PROVIDE A COLLATERAL FOR MY LOAN, IS IT NECESSARY THAT THE REAL ESTATE PROPERTY IS UNDER MY NAME OR CAN I USE A PROPERTY OF ANOTHER INDIVIDUAL?

BDO will accept collaterals under the business name or names of individuals who are involved in the business seeking application.  Collateral properties under the name of an individual other than the main borrower may be accepted on a case to case basis.

WHAT ARE THE VARIOUS LOAN-RELATED FEES*?

  • Appraisal Fee (per title):
    • Metro Manila P3,500
    • Outside Metro Manila P4,000
  • Handling Fee: P5,000
  • Mortgage Redemption Insurance (assuming standard rate):
    • P4.75 for every P1,000 of the loan amount (assuming standard rate) for up to 49 years old
    • P6.50 for every P1,000 of the loan amount (assuming standard rate) for ages 50 to 64 years old
  • Fire insurance: Coverage will be equal to the appraised value of the property and its improvements
  • Registration Expense (based on loan amount)
  • Notarial Fee: P500
  • Documentary Stamp on Tax (P1 for every P200 of the loan amount)

*Subject to change without prior notice.

AT WHAT POINT IN THE APPLICATION PROCESS DO I NEED TO PAY FOR THE LOAN-RELATED FEES?

Appraisal fees are paid upon loan application.  Otherwise, all other fees are paid upon loan approval.

CAN I AVAIL OF ANOTHER SME LOAN EVEN IF I ALREADY HAVE AN EXISTING ONE?

Yes.  You can re-avail of another SME Loan.  Just call a Small Business Loan Account Officer, call (02) 667 1624 or visit the nearest branch to facilitate the processing of your loan application. 

 

Eligibility Requirements

For Individuals / Sole Proprietors

  • 21 years old at the time of loan application and not older than 65 years old at maturity

  • Business is in profitable operation for at least 2 consecutive years, with minimum annual gross sales of P1 Million

  • With stable source of income from business and/or employment

    • If Employed, at least 2 years of continuous employment (may be waived if rank is at least Manager level)

    • If Professional (doctor, lawyer, etc.), at least 3 years in practice of profession

  • With good credit standing

For Partnerships / Corporations

  • Business is in profitable operation for at least 2 consecutive years

  • With minimum annual gross sales of P1 Million

  • With SEC or DTI registration or application papers if registration is still pending

  • Principal business must be within a BDO serviceable area

  • With good credit standing

Documentation Requirements

     A. Pre-approval Requirements

Basic Documents

  • Completely filled-out application form

  • Clear copy of one (1) valid ID matching application details

  • Last 2 years Income Tax Return (ITR)

  • Marriage contract, if applicable

Business / Income Documents

For Employed Individual

  • Latest Crew Contract and Employment History

  • Original Certificate of Employment & Compensation

  • Certificate of Employment & Income or Employment Contract (for OFWs)

  • Last 3 months Proof of Remittance (for OFWs)

  • Latest Full-Month Payslip

For Sole Proprietorship

  • Last 2 years Audited Financial Statements

  • Last 6 months Bank Statements or photocopy of passbook with transaction records for the past 6 months

  • Department of Trade & Industry (DTI) Registration

  • Business Permit / Mayor’s Permit

  • Business Background / Company Profile

  • List of major suppliers and customers (minimum of 3) with contact information

For Partnership

  • Last 2 years Audited Financial Statements

  • Last 6 months Bank Statements or photocopy of passbook with transaction records for the past 6 months

  • Securities & Exchange Commission (SEC) Registration

  • Articles of Partnership

  • Business Background / Company Profile

  • List of major suppliers and customers (minimum of 3) with contact information

For Corporation

  • Last 2 years Audited Financial Statements

  • Last 6 months Bank Statements or photocopy of passbook with transaction records for the past 6 months

  • Securities & Exchange Commission (SEC) Registration

  • Latest Amended Articles of Incorporation & By-laws

  • List of Elected Officers

  • Board Resolution or Secretary’s Certificate

  • Business Background / Company Profile

  • List of major suppliers and customers (minimum of 3) with contact information

Collateral Documents

  • Copy of TCT/CCT

  • Copy of Tax Declaration

  • Appraisal Fee with Official Receipt

  • Building Plan or Floor Plan (for Construction Loan)

  • Bill of Materials and Labor Cost (for Construction Loan)

  • Building specifications certified by Architect / Civil Engineer (for Construction Loan)

  • Latest Statement of Account and Official Receipts for the last three (3) months (for Refinancing / Loan Take-Out)

  • Copy of Lease Contracts and Title for Income from Rented / Leased Properties (if applicable)

 

     B. Post-approval Requirements

  • Original Owner’s duplicate copy of TCT/CCT

  • Original Certified True Copy of latest Tax Declaration on land and improvement

  • Master Deed of Declaration (for condominium)

  • Original Certified True Copy of Tax Clearance

  • Original Real Estate Tax Receipts

  • Electronic-certified True Copy of TCT/CCT with Original Official Receipt

  • Mortgage Redemption Insurance

  • Fire Insurance

  • Payment of Bank Charges (if applicable)

 

 

 

 

Commercial Properties For Sale

BDO SME Loan can help you obtain that much needed commercial space for your business.  To get you started, click on the link below to go to the Real Estate web page. 

Once there, just click on the dropdown button in the Type Field and choose “Commercial”.  You will see a list of available commercial properties for sale.  You also have the option to indicate your preferred area and price range.

List of Commercial Properties for Sale

 

To know more about a commercial property you’re interested in, you may get in touch with the BDO Asset Management Group at (02) 702-7088 / (02) 702-6000.

If you wish to apply for a BDO SME Loan to purchase a commercial property, please call (02) 667-1624 / (02) 631-8000 or click here for the online application form.

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For Inquiries

Call BDO Customer Center at 631-8000 Text BDOLOANS to 2256
  • Minimum Loan Amount
    P1,000,000
  • Maximum Loan Amount
    P20,000,000 or up to 70% of the appraised value of the collateral
  • Loan Term
    1 year to 10 years
 
 
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