Security Bank Business Loan Requirements

Security Bank Business Loan Overview

Security Bank offers two different types of Business Loan for Small and Medium Enterprises (SMEs) operating across the country: SME Business Express Loan and SME Business Mortgage Loan. Each one caters to different types of business owners and their financial needs. 

The Security Bank SME Business Express Loan is ideal for businesses looking for cash to finance their short-term needs including but not limited to purchasing equipment, paying the workspace rental fees, and other expenses on day-to-day operations. 

As an unsecured loan, this business loan does not require collateral or any asset. It has minimal documentation and requirements and offers a more convenient application and faster approval.

The loan proceeds are automatically credited to the borrower’s account upon fund disbursement.

The Security Bank SME Business Mortgage Loan aims to provide financing to entrepreneurs who need large amounts of money for purchasing big-ticket items or investments to scale up their businesses.

This Security Bank Business Loan is a secured business loan that requires collateral and works effectively for enterprises that need flexible payment terms and loan tenure. Thus, it offers a higher loanable amount. 

Loan Features

SME Business Express Loan

Loan Amount: ₱1,000,000 up to ₱5,000,000

Loan Tenure: 12, 18, 24, or 36 months

Estimated Time Approval: Within five (5) days

Interest Rates Per Month:

SME Business Mortgage Loan

Loan Amount: ₱1,000,000 up to ₱30,000,000

Loan Tenure: Up to 20 years depending on the bank’s valuation

Estimated Time Approval: Within 15 to 20 working days

Interest Rates: For reference, see the table below. Take note that rates change every month. Rates are not applicable to Business Mortgage Loan amortized loans due for repricing.

Acceptable Collaterals:

Note: LTV can be as high as 80% depending on the bank’s valuation and capacity to pay evaluation.

Charges and Fees

SME Business Express Loan

• Processing Fee: ₱3,000
• Notarial Fee for Sole Proprietorships: ₱400
• Notarial fee for Partnerships and Corporations: ₱800
• DST:  Approved loan amount / 200 *1.50
• Late Payment Fee: 3% of past-due amount for the month

SME Business Mortgage Loan

• Appraisal Fee (paid upfront)
  • Metro Manila – ₱3,500
  • Outside Metro Manila – ₱4,500
  • Additional Titles within the same area – ₱500

• Real Estate Mortgage Fees (paid upon loan approval)

~2.5% to 3.0% of loan amount (inclusive of: DST, registration fee, notarial fee, processing fee)

• Late Payment Fee – 24% per day of unpaid amortization + past due interest for technical past dues Effective October 25, 2021: 2% of unpaid amortization

Security Bank Business Loan Requirements

SME Business Express Loan

Eligibility Criteria

• The business to which the loan will be applied for must:
• Be a duly registered business in the Philippines
• Have been operating for at least three (3) years
• Have been profitable for the past one (1) year
• Have no outstanding debt that exceeds 40% of the company’s monthly income.
• Business owners who want to apply for a Business Express Loan must:
• Be a permanent resident in the Philippines
• Be at least 21 years of age upon the loan application and not older than 65 years of age upon maturity of the loan
• Have an existing account with Security Bank that is at least 6 months old with ₱50,000 ADB OR an existing credit card (any bank; credit card number/s must be provided in the application).
• Each SME loan must be tied to the business’s primary owner. For partnerships or corporations, this means:
• Owner with a simple majority (individual with the single largest stake in the company) must provide details and sign off on the loan application form, and ultimately be the signatory in the surety agreement prior to loan booking.
• If a simple majority is shared across multiple owners, only one (1) of them is required to sign off on the loan.

Documentary Requirements

Sole Proprietorship

• Completely filled out and Signed Loan Application Form
• Photocopy of two (2) valid IDs bearing a photo of the primary applicant, business owner, or authorized signatory
• Latest Income Tax Return (ITR) with Bureau of Internal Revenue (BIR) stamp
• Latest Audited Financial Statements for the past one (1) year 
• Valid Department of Trade and Industry (DTI) Registration documents
• Latest bank statement for the past three (3) months 
• List of customers or suppliers and details about their dealings
• Valid Business or Mayor’s Permit

Additional Requirements for Partnership or Corporation

The following documents will be required by the bank prior to loan booking:

For Partnership:

Partnership or Board Resolution (authorizing signatory for accounts and loan, credit investigation on both the business and owners).

For Corporation:

Continuing Suretyship Agreement. Clients will be given templates during the loan application to prepare for the loan decision.

SME Business Mortgage Loan

Eligibility Criteria

For Business

• Registered business with the Securities and Exchange Commission (SEC) or DTI
• Business should be registered as either Sole Proprietorship, Partnership, or Corporation
• At least 3 years in operation.
• Must exhibit profitable operations
• Start-up businesses (operating less than 3 years) are acceptable on case to case basis

For Employed

• Principal should be at least 21 years old upon loan maturity
• Earning minimum monthly income of P50,000
• Employed for at least 2 years

Documentary Requirements

Sole Proprietorship

• Completely filled-out and signed loan application form
• Clear copy of one valid Government-issued ID bearing a photo of the borrower, spouse, co-borrower, or signatories of the loan
• Latest Income Tax Return (ITR) and Comparative Audited Financial Statements (with Notes to AFS) or two years Audited Financial Statements if latest is not comparative
• Certificate of Business Name Registration with DTI (for sole proprietorship) or Articles of Partnership (for partnership business)
• Authorization letter (for bank, business, and trade checkings)
• Valid Business or Mayor’s permit
• If married: Clear copy of marriage contract
• If applying as a startup or if business has been in operation for less than 3 years: Financial Projections and Prospects 

Partnership or Corporation

• Completely filled-out and signed loan application form
• Company Profile including company background, owners, key officers
• Clear copy of one valid Government-issued ID bearing a photo of the borrower, spouse, co-borrower, or signatories of the loan
• SEC documents:
  • Corporation – Certificate of Incorporation, Articles of Incorporation, By-laws and General Information Sheet, Board Resolution
  • Partnership – SEC Certificate, Articles of Partnership, Partnership Resolution
• Latest Bank Statements (latest 6 months with debits and credits)
• Latest Income Tax Return and Comparative Audited Financial Statements (with Notes to AFS) or two years Audited Financial Statements if latest is not comparative
• Authorization letter (for bank, business and trade checkings)
• Suretyship of majority owner/s
• Valid Business or Mayor’s permit
• If applying as a startup or if business has been in operation for less than 3 years: Financial Projections and Prospects 

If Employed

• Completely filled-out and signed loan application form
• Clear copy of one valid Government-issued ID bearing a photo of the borrower, spouse, co-borrower, or signatories of the loan
• Certificate of Employment and Compensation (COEC) / Employment Contract OR Latest 3 months payslips OR Latest ITR (BIR form 2316)
• Certificate of Business Name Registration with DTI (for sole proprietorship) or Articles of Partnership (for partnership business)
• Authorization letter (for bank, business and trade checkings)
• Employment Verification (EV) by SBC CI Unit
• If Married: Clear copy of marriage contract
• If OFW: Special Power of Attorney (SPA)

Additional Documentary Requirements

Collateral Docs for Real Estate

• Copy of collateral title (e.g. Transfer Certificate Title (TCT) or CCT)
• Lot plan and vicinity or location map
• Tax declaration on land and/or improvement
• Appraisal Fee; OR Number

Additional Documents for Specific Loan Purpose

• Loan Takeout
  • Proof of amortization payments for the past 3 months
  • Bank statement of account

• Construction Or Renovation
  • Bill of materials and estimates of construction and labor cost
  • Floor and building plan and specifications

Conclusion

The current health crisis brings economic distress and unemployment around the world, and the Philippines is not even spared. Shortly after getting terminated from their previous jobs, many Filipinos nowadays resort to establishing their own business with both online and physical stores to make a living. 

However, it’s often difficult to seek cash for working capital and investment in a business, especially when you want to borrow a large amount of money for the initial capital and revolving funds. That’s why business loans from banks and other financial institutions, including Security Bank, help Filipino entrepreneurs who wish to build their own companies or scale up for expansion.