6 financing options to help your business stay afloat during and after crisis

6 financing options to help your business stay afloat during and after crisis

Finance & Accounting

UnionBank Publication

UnionBank Publication

216 week ago — 5 min read

The current COVID-19 pandemic has extremely hit micro, small, and medium enterprises (MSMEs). Without revenue or sales coming in, MSMEs are facing unprecedented challenges including how to stay afloat to survive the crisis.

Because of this, the government and several fintech players are stepping up, providing access to financing to help businesses bounce back and ease the negative impact of the pandemic.

But before you take on financing, you have to ask yourself: Where am I going to use it? Whether it’s for paying your employees’ salaries, utilities, or just to keep your business operational, here are some financing options that you can consider:

1. Short-term financing

For your business to survive and bounce back, you need immediate cash to be able to jumpstart your operations once your business is already allowed to open. Short-term financing with no collaterals can be your option for this.

First Circle specializes in short-term business loans that are designed for SMEs who are in need of funding to address temporary capital gaps. You can get business financing from P10,000  - P10 million within 5 days as long as you submit proper documents on time. Click here for more information on First Circle financing.

2. Finance your export receivable

A steady cash flow is needed to run a business smoothly. But with the current pandemic, having a stable cash flow can be a challenge. Acudeen helps SMEs to financing their invoices ahead of time.

With the use of your 30 to 120-day term invoices, you can receive your payments in advance as early as 5 days without the need to submit for collateral and maintaining balance. For more information, you can click here.

Also read: Acudeen partners up with UnionBank GlobalLinker to help MSMEs nationwide 

3. Online lending marketplace for SMEs

Way before the 'new normal', online lending marketplace like SeekCap allows business owners to digitally access credit.  Whether it's funding for payroll or inventory, the varying loan products available allows SMEs to flexibly choose the one that best suits their needs.

SeekCap currently offers P50,000 to P800,000 business loans which can be approved the same day, with disbursement within three days. Click here to get to know more Seekcap's offer for your business.

Also read: UnionBank ups MSMEs lending


Learning to pivot, adapting to digital changes, and finding financing partner for your business can help you get through these challenging times.

4. Crowdfunding platform for SMEs

Availing working capital loans can be a challenge for SMEs especially when they do not have a track record in seeking financing from traditional lenders like banks. This is where SeedIn comes in.

“The entire concept about crowdfunding is to give people the power to decide what truly matters to them and to fund what matters most to them. In the past, this power was held exclusively only by banking institutions. In other words, we have the power to decide which entities get to “live on”, post-COVID-19,” SeedIn shared on their blog.

SeedIn provides short-term secured financing for business that needs working capital. It connects businesses with individuals and businesses seeking short-term investment. For more information, click here.

Also read: Take your business further: Introducing SeedIn, a crowdfunding platform for SMEs

5. SME business loan

With limited cash flow, paying for rent, utilities, and overhead is more challenging particularly in times of crisis.

To ensure business continuity, Esquire Financing is providing hassle-free non-collateral business loan for SMEs. Business owners can apply online and submit all documentary requirements via email at the comfort and safety of their homes. For any inquiries, you can click here.

6. Low-interest loan from the government

The Small Business Corporation, Department of Trade and Industry's financing arm, launched a P1-billion Enterprise Rehabilitation Financing facility under the Pondo sa Pagbabago at Pag-asenso (COVID-19 P3-ERF).

Micro enterprises with asset size of not more than P3 million may borrow from P10,000 to P200,000, while small enterprises with asset size of up to P15 million may borrow higher loans up to a maximum of P500,000.

Also read: 5 government programs your business can avail of during the lockdown

These loans enjoy zero interest but will be charged with a 6% or 8% service fee depending on a 12 or 24 months term. A maximum of 6 months grace period will give borrowers enough room to revitalize their businesses.


With these financing options, SMEs have a better chance of survival. Remember, this crisis shall come to pass. Learning to pivot, adapting to digital changes, and finding financing partner for your business can help you get through these challenging times.

Image source: shutterstock.com


Posted by

UnionBank Publication

We are a team of professionals providing relevant content to startups, micro, small and medium enterprises.