Franchise Loans

Being a franchisee offers the flexibility of becoming a small business owner and the support of a large corporation. This is why it’s a great option for any budding entrepreneur. 

If you want to own a business by becoming a franchise owner, there’s one thing you should take care of first: your capital. 

While it’s possible to start a franchise business using small capital, most of the time, you’re going to need lots of it. Keep in mind that your initial franchise investment covers the franchise fee, your initial inventory, supplies, equipment, grand opening, lease, and supplies, among others. 


Because not everyone has cash readily available, you may need a franchise loan to kickstart your investment. 

If you plan on franchising a relatively successful business, you may be wondering if you have a higher chance of getting a franchise loan approved by a bank.

Because franchisees can enjoy all the packages, structures, and systems offered by franchisors to help them achieve success, the answer is yes. After all, banks want a guarantee that loaners will be successful enough to pay back their loan. 

Ready to know what loans you can apply for in the Philippines to start your franchise business? We’ll let you in on the best loan choices you can apply for, plus a step by step guide on how to take out a franchise loan.

Related Guide: Best Ways to Find Funds for your Business


Best Franchise Business Loans in the Philippines

Here are your options for the best franchise business loans in the Philippines. 

Security Bank Franchise Loan

With the security bank franchise loan, starting your own business has never been easier. This no-collateral business express loan can help you:

  • Buy equipment
  • Pay for franchising fees
  • Buy a stall or physical location
  • Settle other business equipment 

Minimum loan amount: P500,000
Maximum loan amount: P5 million 

Loan terms and monthly add-on interest:

  • 12 months (1.40%)
  • 18 months (1.50%)
  • 24 months (1.80%)
  • 36 months (1.85%)


  • Processing fee: P2,000 (waived if an average daily balance of P100,000 is maintained for 3 months from the opening date)
  • Notarial fee for sole proprietorships: P400
  • Notarial fee for partnerships and corporations: P800
  • DST: Approved loan amount / 200 *1.50
  • Penalty fee: 3% of the past-due amount for the month 

The business must be: 

  • Duly registered to operate as a business in the Philippines;
  • Must have been operating for at least 3 years, and profitable for the latest 1 year.
  • Must have no outstanding debt that exceeds 40% of the company’s monthly income

The franchise must also be tied to the business’ primary owner. For partnerships and corporations, this means: 

  • Owner with 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 simple majority is shared across multiple owners, only (1) of them is required to sign off on the loan

The identified business owners are required to have:

  • Have an existing account with Security Bank (at least 6 months old with PHP 50K ADB) OR Existing credit card (any bank; credit card number/s must be provided in the application)
  • Permanent residency in the Philippines;
  • At least 21 years of age at the time of application and not more than 65 years of age upon maturity of the loan

UCPB BizEasy Franchise Loan

With this loan, you can bring your dream to become a business owner to reality. This loan is only open to new franchisees with an approved or pending franchise application with a registered local franchise brand. 

It cannot be availed by any existing or operational franchise business.

Minimum loan amount: P100,000
Maximum loan amount: P1 million
Loan terms:

  • 12 months
  • 24 months
  • 36 months

Calculate your interest rate with the UCPB Franchise Loan Calculator here.
Required documents: 

  • Franchise Documents
    •  Valid Franchise Agreement/Endorsement
    •  Lease Agreement/Proof of Ownership of the location
    •  Franchise Investment Quotation
    •  Franchise Income Projection
  • Checking Account
  • Employment or Self-Employed Income Documents

Eligible franchise options:

  • SEC or DTI Registered
  • Filipino-owned and established company
  • At least 3 years as Franchise Operator
  • With at least 3 company-owned and 3 franchise outlets
  • Preferably a member of any recognized franchise or business group:
    • Association of Filipino Franchisers Inc
    • Philippine Franchise Association

Visit a UCPB branch to apply, or request a loan application form via [email protected]


Blend PH Franchise Loan

This loan is designed for people who want to franchise any brand partnered with Blend Ph. 

This includes Drip Tea, 1740 Coffee Genesis, and Wow Lugaw, among many others. For a complete list of franchise partners, visit this link

To apply for a loan, simply create a Blend PH account, choose your desired brand franchise, and wait for the team to validate and process your requirements. Processing for this loan only takes 1-3 days. 

Minimum amount: P50,000

Maximum amount: P2 million 

Interest rate: 2% per month

Loan terms:

  • 12 months 
  • 18 months
  • 24 moths
  • 30months
  • 36 months

Landbank Franchise Lending Program

This franchise loan is designed to help qualified players to try their luck in the franchising industry. This also enables Landbank to promote inclusive growth in this sector. 

Minimum amount: P100,000
Maximum amount: up to 80% of the project cost/repayment capacity of the borrower, whichever is lower
Loan terms:

  • Short-term line: 360 days
  • For Fixed Asset Acquisition/ Capital Expenditure/Payment of franchise investment package and pre-operating overhead cost, or initial investment: Maximum of 10 years, inclusive of grace period of up to 3 years on principal payment 
  • Permanent working capital: maximum of 3 years without grace period on principal payment  

To apply, visit the nearest Landbank Lending Center. 


Tonik Bank Loans

One of the leading digital banks today, Tonik is revolutionizing the way Filipinos do financial transactions. With the Tonik Bank loans, budding franchise owners can apply for a loan in just minutes and get up to P50,000 immediately. In the coming months, Tonik Bank is set to increase this to P2.5 million. 

Aside from fast approval and disbursement, this no-collateral loan does not need to examine your credit history. All you need is 1 valid ID and 1 month's payslip

Minimum amount: P5,000
Maximum amount: P50,000 (set to increase to P2.5 million in the coming months)

Loan terms:

  • 6 months
  • 9 months
  • 12 months
  • 18 months
  • 24 months

BDO SME Term Loan

If you need a financial boost to start a franchise business, this loan can help set your idea in motion. To qualify for BDO’s SME term loan, you just need to have a stable source of income from employment or business.

Minimum amount: P1 million
Maximum amount: P20 million


  • Residential: 70% of the appraised value
  • Condominium: 70% of the appraised value
  • Mixed-use: 70% of the appraised value
  • Commercial: 60% of the appraised value
  • Vacant lot: 60% of the appraised value

Loan terms and interest rate (subject to change based on yearly appraisal):

  • 1 year (7%)
  • 2 years (7%)
  • 3 years (7%)
  • 4 years (8.50%)
  • 5 years (8.50%)


  • Handling fee: P5,000
  • Notarization fee: P500
  • Collateral registration fee: variable, based on the approved loan amount

First Circle Revolving Credit Line

With the First Circle Revolving Credit Line, you’re one step closer to growing your business. 

This credit line gives you flexible and ongoing access to funds so you can settle your inventory bills, as well as cover cash flow gaps in your franchise business. The entire application process only takes 2 business days upon submission of requirements. 

Maximum amount: up to P5 million to re-usable credit
Loan duration: up to 6 months 
Interest rate: starts at 1.39% per month (can be lowered for those eligible to avail of the Best Price Guarantee)

  • Business must be registered with BIR and DTI, or SEC
  • Business address must be in NCR, Central Luzon, CALABARZON, Central Visayas, Northern Mindanao, or Davao region
  • Annual revenue must be P5 million 

Apply here


How to Get a Loan for Franchising a Business

Let's assume you already have your franchise business plan completed. Once you have this, you can proceed to the steps you need to take to take out a franchise loan.

Assess what you need

Determine how much money is needed to meet expenses, including franchise fees, franchise equipment, and operating expenses. As much as you can, do not borrow more than what you need. This may only drown you in debt.

Once you've determined how much money you need, review your financial situation to see what you can offer as collateral.

Compare different lenders

Compare interest rates, fees, and services that each lender offers. Then, find out about the terms and conditions each lender requires. 

Determine if you qualify for a loan

Lenders determine your loan worthiness based on your credit score, income, and cash savings. If you have a good credit score, it will be easier to qualify for a loan.

Prepare documents in advance

When you apply for a franchise business loan, you will likely be required to submit documents such as tax returns, bank statements, and personal financial statements, as well as documents from your franchise business of choice. Having all the necessary documents readily available will make the loan application process smoother. 

Apply for the loan

Once you have assessed your financial situation and found a lender, you can proceed to apply for the franchise loan. 

Once approved, you can use the loan to pay franchise fees, get franchise equipment and supplies, and start operating your business. 

Keep proper financial records

Keep time-stamped records of all payments made, including down payments and annual payments. This will make it easier to track your finances.

Author Bio:

Jason Acidre is a serial entrepreneur and the publisher of Grit PH - one of the fastest growing online publishing platforms in the financial & business space in the Philippines. Follow him on Twitter @jasonacidre.

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.