Best short-term financing to cover the 13th month pay of your employees

Best short-term financing to cover the 13th month pay of your employees

Finance & Accounting

GlobalLinker Staff

GlobalLinker Staff

184 week ago — 4 min read

Labor Secretary Silvestre Bello III already clarified that no company or employer is exempted from paying employees their 13th month pay on or before December 24, even with the ongoing health crisis.

As a business owner, you might be left hanging with no concrete ways on how you can meet your financial obligation for your employees, especially if your business suffers from the blow of the COVID-19 pandemic.

What happens if you don’t pay the 13th month of your employees?

As mandated by statute under Presidential Decree (PD) 851, employers are obligated to comply and provide half of the 13th month pay before the opening of the school year, and the remaining half must be compensated on or before December 24.

The following are consequences when you don’t pay your obligation:

  • Penalties and administrative sanctions. Non-compliance will result to penalties and administrative sanctions from the Department of Labor and Employment (DOLE).
  • Employees can file a complaint against your business. Your business will be under investigation which can also lead to a lawsuit against you as a business owner.
  • You can lose your high performing employees. Put yourself in their shoes. How would you feel if you were not given what’s due to you regardless of your hard work? Take it as a way to show your gratitude and appreciation to them for their valuable contribution to your business.

Also read: Are you looking to pay your employees and vendors to get back on track?

Given the consequences, it’s safe to say that you wouldn’t want to put your business into hassle and trouble. But what if you don’t have enough cash or working capital to meet your obligations due to decline of sales or unexpected expenses, what shall you do?  

If that’s the case, you may want to consider availing a short-term loan to cover your financial responsibilities or the 13th month pay of your employees to ensure uninterrupted business operations.

Using short-term loan to pay 13th month pay

Since the deadline to pay the 13th month pay of your employees is nearing, you may need cash immediately. A short-term loan through SeekCap may be your best option.

SeekCap of UBx, a subsidiary of UnionBank, is an online marketplace, where you can find fast and hassle free business loans.

Why avail short-term loans through SeekCap

  • Minimal documentation needed
  • Get multiple offers from different lenders
  • Disbursement of loan is as fast as three banking days


Their short-term loan comes with flexible terms (3-6 months term) and you can avail a loan amount as high as Php 300,000. The interest rate is at 2% per month or 24% per annum with zero processing fees.

You no longer need to visit a bank to lodge your loan application. You can apply here anytime, anywhere even at the comfort of your home. Click here to apply

Show your appreciation to your employees

Don’t let this challenging time stop you from complying what is mandated by the government.

Your business may be in a tough situation now, but so are your employees. They also have bills to pay, family to feed, and other financial obligations to meet as well.

Also read: 5 effective ways to lead your team

Show your respect, love, and appreciation through giving the 13th month pay of your employees. After all, they deserve to be rewarded for all the blood, sweat, and tears they contributed for the last 12 months.

Image source: Shutterstock

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