March 31 2022
How to get a loan for an LLC without collateral and guarantors: microfinance organizations (MFIs) and their services
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If a business loan is needed urgently, without collateral and guarantors to the founder, you can use the services of an MFI.
As a rule, an LLC opens an account with a bank after registration, but banks can establish a credit line on the current account (overdraft) only after a certain turnover of money has passed on the account.
Each bank uses its own algorithm to calculate leverage in this case, and some banks do not provide such a service at all.
In this case, the easiest and most convenient way to replenish working cash reserves is to take an automatic credit on a card in a microfinance organization. The loan will be received either in cash or on the bank card of the founder and it can be deposited as non-refundable or reimbursable financial assistance to the current account.
In fact, for an LLC, this type of lending can only be considered at the very beginning of its existence, while there is no turnover and the newly created company is in dire need of money. For the future, without collateral and guarantors, a credit line can be activated immediately on the current account, this is the simplest and most convenient method.
For what purposes do you need a loan for legal entities without collateral and guarantors
As we wrote earlier, the newly created company is in dire need of money during its start-up period, and there is still no access to credit lines, because the business has not yet shown its viability in the eyes of banks.
But, in turn, there are mandatory payments that businesses need to pay:
- Employee payroll taxes
- Income tax or single tax
- value added tax
- Salary to employees
- Payments to suppliers
- Office or warehouse rental
Therefore, reinsurance and obtaining quick loans from MFIs during this period is extremely important for the subsequent development of the enterprise, because this is for a small loan on a card at MFIs.
What documents are needed to get a business loan without collateral
Getting a loan for a business is no different from getting a loan for an individual, when you urgently need 1000 PHP for your credit card, you need the same documents:
- The passport
The only difference is that after receiving a loan, the organization’s current account is replenished with this money, and then the loan is repaid according to the principle of a loan taken for an individual, through the personal account of the MFI.
Making an online application for a loan for business development without collateral, how much you can borrow
To apply for a loan, select the most suitable option in the catalog of all loan offers on our website, for this, use the filtering and sorting of offers.
Apply to 4-5 credit institutions, in the comments indicate that this is a business loan for an LLC. MFOs value their clients and will be happy to have corporate clients and, perhaps, they will be able to offer something more interesting.
For business, you can safely ask for an amount in the application of 20,000 PHP - 60,000 PHP for a period of 1 to 1.5 months, as a rule, loans for legal entities are issued and approved for amounts much more than for individuals.