What is a Secured Business Loan?

A secured loan for business requires collateral—such as real estate properties and bank deposits—that the lender will claim to recover its losses in case the borrower defaults on the loan.

The collateral reduces the risk for lenders, which is why secured loans generally have lower interest rates, longer loan terms, and higher loan amounts than unsecured loans. These features make a secured business loan affordable and suitable for startup businesses that need funding at a time when they’re just beginning to make profits.

For secured business loans, lenders charge several collateral-related fees such as appraisal fee and collateral registration fee.
With the exception of a few, term loans and credit lines in the Philippines are secured business loans.

Secured Business Loan Options in the Philippines

 Secured Business LoansCollateral
BDO SME Loan        Residential, commercial, industrial, or mixed-use property
BPI Family Ka-Negosyo LoanResidential or commercial propertyBank deposit or investment
Metrobank SME Business LoansReal estate mortgageBank deposit or placement
OWWA Loan (for OFWs)Real estate property or any loan security accepted by the bank
PSBank SME LoansResidential, commercial, or industrial propertyCash deposits
Security Bank SME Business Mortgage LoanResidential, commercial, or mixed-use propertyHold-out deposit
SSS Business Development Loan Facility / SSS ASENSO  Any collateral accepted by the SSS and partner bank

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