Starting a business is exciting, but let’s be honest—one of the biggest struggles is figuring out saan nga ba kukuha ng puhunan? Don’t worry, you’re not alone. Many successful entrepreneurs today once faced the same challenge. The good news? There are several ways to fund your business idea, even if you’re starting from scratch.
1. Personal Savings – Your First Investor is YOU
The most common and safest source of capital is your own savings. If you’ve been working for some time, even a small amount set aside regularly can become your initial seed money. It also shows future investors or lenders that you’re serious and willing to take risks for your business.
2. Family and Friends – Borrow from Trust
Filipino families are often supportive when someone wants to start a small business. You can borrow (or ask for investment) from trusted relatives or friends. Be transparent with your plans and treat it like a professional arrangement. Set clear terms para walang tampuhan.
3. Online Lending Platforms and Microfinance
There are now many legit online lending platforms and microfinance institutions that offer small business loans. Some popular ones in the Philippines include Tala, Cashalo, and CARD Bank. Just make sure to review interest rates and repayment terms carefully.
4. Government Programs – Tulong ng Gobyerno
DTI (Department of Trade and Industry) and other government agencies like SB Corp. offer loan assistance and mentorship programs for MSMEs. Programs like P3 (Pondo sa Pagbabago at Pag-asenso) are designed specifically for small entrepreneurs. Visit their websites or local Negosyo Center to learn more.
5. Credit Cooperatives – Mas Maluwag ang Terms
If you’re a member of a cooperative (co-op), you can apply for a business loan with lower interest rates and more flexible payment options. Co-ops are community-based, so they are usually more understanding and supportive.
6. Side Hustles – Earn While You Prepare
Don’t have enough savings yet? Start with a side hustle. Online selling, freelance work, or food delivery can help you earn extra while building up your business fund. Maraming small business owners started this way!
7. Investors or Business Partners
If you have a promising business idea, you can pitch it to a potential investor or partner. They can provide the capital in exchange for profit sharing. Just make sure to have a written agreement para malinaw ang hatian.
Whatever source of capital you choose, make sure you have a solid business plan. Knowing how much you need, where it will go, and how you’ll earn it back will make others more confident in supporting you.
Remember: Starting small is better than not starting at all. The important thing is you’re taking the first step. Go for it, and don’t let lack of puhunan stop you from reaching your business dreams!
FAQs: Getting Your Business Capital
1. What exactly is “puhunan” for my business?
“Puhunan” simply refers to the money or resources you invest to start and run your business. It covers expenses like inventory, equipment, marketing, and working capital.
2. How do I determine how much capital I need?
List all startup costs—rent, permits, supplies, salaries—and estimate monthly operating expenses. Add a buffer (10–20%) for unforeseen costs. That total is your target capital.
3. Can I really start a business with my personal savings?
Yes! Many entrepreneurs bootstrap using personal savings. Just make sure you don’t compromise your emergency fund. Treat your savings like an investment and track every peso you spend.
4. Is borrowing from family and friends a good idea?
It can be, as long as you set clear terms—amount, repayment schedule, and possible profit share. Put everything in writing to avoid misunderstandings.
5. What are the typical interest rates for online lending platforms?
Online lenders in the Philippines often charge between 2%–5% per month. Always compare fees, late-payment penalties, and total repayment before signing.
6. How do I apply for a DTI or SB Corp. loan?
Visit your nearest DTI Negosyo Center or SB Corp. office. Prepare your business plan, financial projections, and valid IDs. They’ll guide you through eligibility and requirements.
7. Do I need collateral for microfinance or coop loans?
Most microfinance institutions and cooperatives offer unsecured loans up to a certain amount. For larger loans, some collateral or a guarantor may be required.
8. Can a side hustle help me build capital?
Absolutely. Freelancing, online selling, or food delivery can generate extra income. Save or reinvest these earnings into your main business idea.
9. What should be in my business plan to attract investors?
Include an executive summary, market analysis, operations plan, financial projections, and clear ROI (return on investment). Show how and when investors will get their money back.
10. How do I find potential business partners or angel investors?
Attend networking events, startup pitch nights, or join online platforms like Kapatid Mentor Me or AngelList. Share your pitch and be open to feedback.
11. How important is my credit score when seeking a bank loan?
Very. Banks check your credit history to assess risk. A good score (no defaults, on-time payments) improves your chances and access to lower interest rates.
12. What’s the best funding option for a small, home-based business?
For small-scale ventures, personal savings, microfinance, or coop loans are often most accessible. They require less paperwork and typically have friendlier terms for solo entrepreneurs.
Business News Philippines was launched in October 2015 as a portal for readers to learn more about operating a business in the Philippines.
