Business Loan FAQ: Everything You Need to Know

Frequently Asked Questions

What is the application process?

1. First, identify whether you are a micro business or a small to medium business.

For micro businesses, fill out the application form here (linked to the landing page).
Ready the following documents to upload in the application form:

Valid ID
Business Permit or Barangay Certificate
Selfie: A selfie taken within your store

For small to medium businesses, sign up and create a profile in our Borrower Portal. Click here to get started.
Complete your application by providing the following documents:

Trading History: Minimum of 1 year of trading history.
Financial Documents: At least 1 full financial year of Audited
Financial Statements (AFS) and Income Tax Returns (ITR)
Bank Statements: Minimum of 3 months of bank statements.
Business Registration: Valid business registration document (e.g., GIS or DTI), not under individual status.
Valid ID: One valid primary ID.
Age Requirement: Business owner(s) must be at least 18 years old.

2. Once you have submitted your application, we will review it, format it according to lenders’ standards, and match your request with suitable lenders interested in your profile. If we identify any issues, we will notify you promptly so you can resolve them.

Lenders have a limited timeframe to evaluate the opportunities presented. If they find your application suitable, they will make you an offer. Depending on the interest from lenders, you may receive multiple offers to choose from. Review these offers, select the one that best suits your needs, and proceed with the next steps to secure your funding.

What are the application requirements?

To create a business loan application, we require the following documents:

Trading History: Minimum of 1 year of trading history.
Financial Documents: At least 1 full financial year of Audited Financial Statements (AFS) and Income Tax Returns (ITR).
Bank Statements: Minimum of 3 months of bank statements.
Business Registration: Valid business registration document (e.g., GIS or DTI), not under individual status.
Valid ID: One valid primary ID.
Age Requirement: Business owner(s) must be at least 18 years old.

For micro loans, the following additional documents are required:

Valid ID
Business Permit or Barangay Certificate
Selfie: A selfie taken within your store

Please note that some business loan solutions may have specific requirements (e.g., an invoice for equipment being acquired), and lenders may have additional requirements. These will be communicated after you have submitted your application and a lender has assessed it.

How much can I borrow?

Do I have to pay fees to Kredit Hero?

Are business loans available nationwide?

How do I check the status of a loan application?

I have received a loan offer. If I accept, when can I access the funds?

What are valid primary forms of identification?

Valid primary forms of identification include:

Passport
Professional Regulation Commission (PRC) ID
National Bureau of Investigation (NBI) Clearance
Government Service Insurance System (GSIS) ID
Unified Multi-Purpose ID (UMID)
Driver’s License
PhilHealth ID (digital)
Senior Citizen Card (digital)
National Council on Disability Affairs ID (digital)
Overseas Workers Welfare Administration ID (digital)
Overseas Foreign Worker ID (digital)
Postal ID (digital)
Voter’s ID (digital)
TIN ID (digital)
Integrated Bar of the Philippines (IBP) ID

How to delegate access for staff to manage loan applications?

Any authorised officer or employee can create a profile for a business.

Additional staff members can be added by navigating to Account > Profile.

The second section on the page is titled “Staff”.

Click on the Add Staff button, and fill out the form.

Check the signatory box if the staff member will be a signatory on the loan documents, which will require the staff member to upload a current primary identification document.

For Role, we recommend you choose either:

Account Owner (full admin privileges)

Senior Manager (full admin, but cannot close/cancel the profile)

After creating the staff member, they will need to go to the app and click on Forgot password.

Why is a Secretary’s Certificate required by a lender?

When an officer or employee of a company applies for a loan on behalf of the company, the lender that is considering the application needs to know if that person is authorised to make such an application, and the limits of the authorisation.

A Secretary’s Certificate is a document issued and signed by the corporate secretary of a corporation, who is the person responsible under the law for maintaining the company’s records. It serves as an official attestation of the accuracy and authenticity of corporate records, resolutions (including board resolutions), and other documents.

Notably, when a Secretary’s Certificate appears to show no irregularity, third parties may rely on the facts and contents stated in the document without having to further investigate.

The Philippines Supreme Court has recognized the authority of some corporate officers to sign this verification and certification for the corporation even in the absence of a board resolution or Secretary’s Certificate evidencing the authority of the signatory. The following have been found to have the authority to sign for the corporation without need of a board resolution or Secretary’s Certificate:

(a) the chairperson of the board of directors
(b) the president of a corporation
(c) the general manager or acting general manager

How to maintain your company profile?

The company records menu item contains the following record types:

Financial statements
Bank Accounts
Registration documents

Whilst you can add these documents when you are creating a new loan application, you can also add them before making a loan application, to save time.

Bank accounts

Maintain a listing of your current bank accounts, and add bank statements.

Financial statements

Maintain a year-by-year list of audited financial statements and related income tax returns.

Registration documents

Add those documents that are commonly asked by lenders, including but not limited to:

General Information Statement
Certificate of Incorporation
Articles of Incorporation
By-laws
Board Resolution
Business/Mayor’s permit
Certificate of Registration with BIR
Premises photos

Agents, brokers and referrers

Kredit Hero DOES NOT work with agents or brokers.

Kredit Hero DOES operate an affiliate program, whereby accredited affiliates earn points for referring business clients to Kredit Hero – points that can be redeemed for cash, subject to certain conditions.

Please note that affiliates of Kredit Hero are not permitted to charge loan application or loan arrangement fees, and any benefit that an accredited affiliate receives from Kredit Hero is paid by Kredit Hero, not a borrower.

Audited Financial Statements and IFRS

An Audited Financial Statement (AFS) is a legal document illustrating the financial standing of a company, following accounting standards set out by the International Accounting Standards Board (IASB).

The AFS is designed to give a clear snapshot of the fiscal health of a business to all stakeholders, including shareholders, directors, lenders, corporate regulators, and tax authorities.

International Financial Reporting Standards (IFRS) were created to bring consistency and integrity to accounting standards and practices, regardless of the company or the country. They were issued by the London-based International Accounting Standards Board (IASB) and address record keeping, account reporting, and other aspects of financial reporting. IFRS fosters greater corporate transparency.

Note that IFRS is not used by all countries; for example, the U.S. uses generally accepted accounting principles (GAAP).

Standard IFRS Requirements

IFRS covers a wide range of accounting activities. There are certain aspects of business practice for which IFRS sets mandatory rules:

Statement of Financial Position: This is the balance sheet. IFRS influences the ways in which the components of a balance sheet are reported.
Statement of Comprehensive Income: This can take the form of one statement or be separated into a profit and loss statement and a statement of other income, including property and equipment.
Statement of Changes in Equity: Also known as a statement of retained earnings, this documents the company’s change in earnings or profit for the given financial period.
Statement of Cash Flows: This report summarizes the company’s financial transactions in the given period, separating cash flow into operations, investing, and financing.

In addition to these basic reports, a company must provide a summary of its accounting policies. The full report is often seen side by side with the previous report to show changes in profit and loss. A parent company must create separate account reports for each of its subsidiary companies.

How Does IFRS Differ From GAAP?

The two systems have the same goal: clarity and honesty in financial reporting by publicly-traded companies. IFRS was designed as a standards-based approach that could be used internationally, while GAAP is a rules-based system used primarily in the U.S.

Several methodological differences exist between the two systems. For instance, GAAP allows a company to use either of two inventory cost methods: First in, First out (FIFO) or Last in, First out (LIFO). However, LIFO is banned under IFRS.

Bank Statements in PDF file format

To avoid delays in the processing of your loan application, it is strongly recommended that you do not copy paper bank statements.

It is recommended that you download bank statements directly from your internet banking portal as a portable document format (.PDF) file, and then upload them to your Kredit Hero profile or loan application.

Using a PDF file directly obtained from your bank will ensure that we can accurately read the statements and avoid delays in manually processing your application.

Audited Financial Statements in PDF format

To avoid delays in the processing of your loan application, it is strongly recommended that you do not copy paper audited financial statements (AFS).

It is recommended that you ask your accountant or auditor for a copy of your AFS as a portable document format (.PDF) file, and then upload them to your Kredit Hero profile or loan application.

Using a PDF file directly obtained from your accountant or auditor will ensure that we can accurately read the statements and avoid delays in manually processing your application.

What’s the difference between a Lending Company and a Financing Company in the Philippines?”:html

Lending companies rely on their own capital funds, which are sourced from not more than 19 individuals. This group can grant loans to borrowers at reasonable interest rates agreed upon by both parties. The agreement between lender and borrower is bound by the Truth in Lending Act and Consumer Act of the Philippines, and with the approval or prescribed interest rate by the Monetary Board (in consultation with the Securities and Exchange Commission or SEC), in line with the existing economic and social condition.

Financing companies have a minimum paid-up capital as required by the SEC. They are primarily organized to extend credit facilities to individual clients as well as industrial, commercial, or agricultural enterprises by direct lending, discounting, or factoring commercial papers or accounts receivables. This type of company also supports borrowers by buying and selling contracts, leases, chattel mortgages, or other evidence of debt. Financing companies may also do financial leasing of movable assets (such as vehicles and equipment) as well as immovable property (e.g., houses or commercial spaces).

Financing companies tend to be larger and therefore subject to greater oversight by regulators. They also are capable of providing quasi-banking and trust operations subject to approval from the Bangko Sentral ng Pilipinas (“BSP”).

Kredit Hero proudly works with banks, lending companies, and financing companies to meet the needs of all businesses in the Philippines.

Why are post-dated checks (PDC) used in the Philippines?

A post-dated check (PDC) is a check you issue in advance to your payee, but the date indicated is some date in the future. PDCs are a convenient way of paying for your bills and commitments in advance without actually releasing the amount until the date indicated on the check.

This way, you don’t have to worry about getting charged with penalties for being late in making your loan payments, or being inconvenienced by having to physically or manually submit your payments on the day they fall due.

Understanding the General Information Sheet (GIS)

For corporations in the Philippines, the General Information Sheet (GIS) is a critical document that must be filed annually with the Securities and Exchange Commission (SEC). The SEC uses the GIS to ensure that corporations are transparent with their current operational status and comply with regulatory requirements.

The GIS provides the SEC with updated information about:

Corporate name
Business or trading name
SEC registration number
Founding date
Fiscal year end date
Corporate TIN
Date of annual meeting per by-laws
Registered address
Official and alternate email addresses
Website address
Official and alternate phone numbers
Name of external auditor and SEC accreditation number
Classification of business activity
Industry classification
Parent company
Subsidiary companies
Directors
Officers
Capital structure
Stockholders and their shareholdings

Logging in with a Passkey

Kredit Hero encourages customers to use Passkeys as a replacement for logging in with an email and password.

Passkeys are a replacement for passwords that are designed to provide a more convenient, more secure, passwordless sign-in experience on websites and apps. Passkeys are a standards-based technology that, unlike passwords, are resistant to phishing, always strong, and designed so that there are no shared secrets. They simplify account registration for apps and websites, are easy to use, and work across all your devices (if you elect to use services like Apple’s iCloud or Google’s cloud service).

Credential security

Passkeys are built on the WebAuthentication (or “WebAuthn”) standard, which uses public key cryptography. During the account registration process, the operating system creates a unique cryptographic key pair to associate with an account for that app or website. These keys are generated by the device, securely and uniquely, for every account.

One of these keys is public and is stored on the server. This public key is not a secret. The other key is private and is what is needed to actually sign in. The server never learns what the private key is. On devices that support biometrics (e.g. Touch ID or Face ID), these authentication methods can be used to authorise use of the passkey, which then authenticates the user to the app or website. Shared secrets are not transmitted and the server does not need to protect the public key. This makes passkeys very strong, easy-to-use credentials that are highly phishing-resistant.

How does Kredit Hero manage data security?

Secure software development

We build and deliver secure software solutions applying OWASP security methodologies and best practices throughout the software development lifecycle (SDLC). Our teams undertake combinations of dynamic application security testing and manual penetration testing to identify and remedy potential security vulnerabilities in applications, products, or enhancements. Rigorous security testing is performed on external-facing interfaces and APIs.

Security testing

We monitor external security vulnerability awareness sites. As part of the routine vulnerability management process, our security team evaluates exposure to these vulnerabilities and takes swift action as necessary.

Monitoring

We maintain vigilant security monitoring to prevent, detect, and respond to vulnerabilities and security events. A range of security tools monitor environments, providing defence-in-depth and ensuring that security is monitored and managed at multiple tiers of the architecture.

Immutable logging

We adopt an immutable architecture, for accurate logging and auditing in all system processes. Immutability provides a tamper-resistant hardening of comprehensive Identity and Access Management policies and procedures.

Deployment segregation

Software deployed is segregated on a per-client basis in client-dedicated cloud projects and client-dedicated infrastructure, so there is no data co-mingling. Each deployment is designed to be fully independent and specifically configured for the client, their jurisdiction, and their compliance framework.

Data access

Access to databases and file storage is only accessible to internal services and an explicit whitelist of computers for support and management. Access control levels are set to explicit for authorised management users. Any other attempts to access the data from different computers or users is blocked. Firewall rules are used by both the server and the database to reject connection attempts from IP addresses that have not been explicitly whitelisted.

Data in transmission

All connections to web applications and databases require transport-level encryption.

Data in storage

Customer data is stored in a database that employs data encryption to help protect against the threat of malicious activity. This technology performs real-time encryption and decryption of the database, associated backups, and transaction log files at rest. Transparent data encryption protects data and helps meet compliance requirements by encrypting databases, associated backups, and transaction log files at rest.

Data loss protection

Data is backed up at frequent intervals and distributed across multiple servers and data centres to prevent or minimise loss in disaster scenarios.

Security

The public is encouraged to report security vulnerabilities by emailing security@staging-3f72-kreditherocom.wpcomstaging.com.

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