Major Philippine banks usually require personal guarantees, business assets, and sometimes real estate or inventory as collateral for acquisition financing. Microfinance institutions can assist smaller deals by offering flexible loans with lower collateral requirements, often suited for small or first-time business buyers.

In the Philippines, major banks usually require strong collateral for acquisition financing think real estate, company assets, personal guarantees, or sometimes a combination because they want to be sure they can recover their loan if things go south. For smaller deals, microfinance institutions can step in with more flexible lending, often focusing on cash-flow-based loans or smaller asset-backed facilities. It’s a bit like having a safety net versus a trampoline: banks are strict but secure, while microfinance offers agility and accessibility, helping buyers take that first step into business ownership without being weighed down by heavy collateral.