12 Tips for Acquiring Working Capital in the Philippines

Working Asian Business Man

12 Tips for Acquiring Working Capital in the Philippines

The dynamic business environment of the Philippines requires that enterprises have access to sufficient working capital in order to survive. It’s essential for maintaining daily operations, covering short-term debts, and investing in growth opportunities. This guide provides practical tips for Filipino entrepreneurs seeking to acquire working capital.

Understanding Working Capital

The term “working capital” is described as the difference between a company’s assets and liabilities. It’s a measure of a company’s short-term financial health and its ability to cover day-to-day expenses.

The Working Capital Formula

The formula for calculating working capital is:

Current Assets − Current Liabilities = Working Capital

A positive result indicates sufficient funds to cover short-term obligations, while a negative result suggests potential cash flow issues.

Here are tips for Acquiring Working Capital

1. Save Up and Bootstrap

    Start by saving personal funds and reinvesting business earnings. Bootstrapping allows you to maintain control without external pressures.

    2. Secure a Bank Loan

      Banks in the Philippines offer various loan products. In order to increase the probability of approval, it is advisable to prepare a comprehensive business plan and financial statements.

      3. Explore Government Programs

        The Philippine government provides financing programs for SMEs, such as the Pondo sa Pagbabago at Pag-asenso (P3) program.

        4. Consider Online Lending Platforms

        Online lenders can offer quicker loan approvals with less stringent requirements than traditional banks.

        5. Utilize P2P Lending

        Peer-to-peer lending platforms connect borrowers directly with individual lenders, often resulting in competitive interest rates.

        6. Engage with Angel Investors and VCs

        It is essential to present a compelling business case to attract investment from angel investors or venture capitalists interested in high-growth opportunities.

        7. Apply for Business Grants

        It is recommended that research be conducted and that applications be made for grants from government agencies, non-profit organizations, and private institutions.

        8. Leverage Startup Incubators and Accelerators

        These programs can provide funding, mentorship, resources, and networking opportunities.

        9. Crowdfunding

        Crowdfunding platforms are used to raise small amounts of capital from many people, typically via the internet.

        10. Asset Liquidation

        Sell non-essential assets or inventory to free up cash.

        11. Invoice Financing

        Use outstanding invoices as collateral to get an advance on the amount due from a financing company.

        12. Reduce Outstanding Debts

        Work on lowering your debt levels to improve your creditworthiness and financial stability.


        Acquiring working capital in the Philippines requires a strategic approach and a thorough understanding of the available financial instruments. By exploring various funding sources and employing sound financial management, businesses can secure the capital they need to thrive.

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