GrabFinance has recently started offering Quick Cash, a low-interest cash advance program exclusive to qualified Grab merchant-partners. Quick Cash adds to the range of financing options available to Filipino entrepreneurs in the increasingly diverse and dynamic credit market.

With the country easing into the new normal, Filipino business owners and startup founders now have access to an incredible array of financing options. Most of these business loans are offered through traditional or non-traditional channels. In the Philippine setting, traditional loan channels are generally understood to be loans offered through banking institutions. Non-traditional channels, on the other hand, include lending firms, finance technology (fintech) companies, small business associations, and other smaller lending institutions.

Loans from family members arguably comprise another loan category. While business loans between friends and family are private matters that are seldom formalized, they are nonetheless common in the Philippines.

Here are some of the pros and cons of these types of loans:

Traditional Bank Loans

Banks are generally regarded as the traditional channel for business loans. These institutions can offer small businesses loans for substantial amounts, making them a good source of funding when starting a new business.

• Banks usually offer lower interest rates than other lenders.
• You can often negotiate the terms right at the beginning of the loan process.
• You can keep full control of your business. You aren’t required to give a percentage of your profits to the bank or offer shares in the business.
• You can borrow large amounts of cash, which often makes banks the best choice for covering the purchases of expensive assets or for covering forecasted deficits in operating income.
• Accredited banks are stable and come with a good reputation.

• Not all small businesses are eligible for bank loans. Because of the high rates of small businesses failing, many are not considered acceptable risks for banks.
• A lot of paperwork is needed for even the smallest bank loan amounts.
• Some loans have to be secured with collateral. This could be the assets of your business or your personal possessions.
• You may be charged for repaying loans before the end of their term, especially if the loan has a fixed interest rate.
• Most bank loans are not flexible. You may have to pay interest on unused funds.
• Loan processing fees can make them impractical for small loan amounts.
• Bank loans may take months to process. In most cases, they can’t be approved in time to cover unexpected liquidity shortfalls that need urgent resolution.

Non-Traditional Loan Channels

In the Philippines, small business owners are not limited to banks as a source of loans. A variety of small financial institutions, fintech companies, investment groups, professional associations, and lending services also offer loans that are specifically intended for small businesses.

Many of these services are on the cutting edge of finance, offering business owners a degree of flexibility and customization not available through most mainstream banks.

• Getting a loan from a small business lender is usually easier than getting a similar-sized loan from a bank.
• Small business lenders usually require less paperwork compared to banks offering similar loans.
• Relatively fast disbursement, making them suitable for unexpected cash shortages.
• A growing number of services allow online applications.

• Interest rates for these services tend to be much higher than comparable bank loans, reflecting the bigger risks made by small business lenders.
• Admin fees can be high relative to the loan amounts, making them expensive in many situations.
• May require collateral or a business stake in some instances.

Family Financing

The most common source of startup funding for Filipino entrepreneurs is the 2Fs —friends and family members. Whether presented as an informal grant with an option to pay or as a formalized contract with defined terms, family funding plays a huge part in the beginnings of many Filipino businesses.

As ubiquitous as it is, most mainstream finance experts will advise against family financing except as a last resort. However, if all parties come into a loan with realistic expectations, then these loans can be a viable option for some entrepreneurs.

• Minimal paperwork is usually needed.
• Can be much easier than borrowing from other businesses and institutions.
• Terms are often highly flexible.
• Most family loans will not require collateral.
• Lenders tend to seek much lower rates of return compared to banks and other lending institutions.
• Can be interest-free in many cases.
• Friends and family already know you very well, so a business plan is not usually necessary.
• Disbursement is often immediate, allowing for cash crunches to be addressed immediately.

• Potential unwanted interference from lenders.
• Money matters can ruin close relationships.
• The informal nature of these loans can complicate both business and personal matters.

What Is GrabFinance’s Quick Cash?

As an alternative to bank loans and existing non-traditional loan options, you may also check out GrabFinance’s Quick Cash program. Quick Cash is a small business cash advance service exclusive to GrabFood merchant-partners.

Quick Cash has been developed with the needs of Filipino owners of small- and medium-sized businesses in mind, offering merchant-partners a hassle-free way to cover operational cash shortages and stay on the road to growth. Through Quick Cash, qualified Grab merchant-partners can take out cash advances of between PHP 15,000 and PHP 300,000 with no collateral needed. Quick Cash cash advances are also flexible, with repayment terms from 6 to 12 months.

True to the name, GrabFinance’s Quick Cash is also fast, with cash disbursements being made in less than 7 days. Even better, merchant-partners only need to go over and confirm their merchant details with Grab, with no additional paperwork required.

When Should You Use GrabFinance’s Quick Cash?

While cash advances from Quick Cash can be used in many ways, many GrabFood merchant-partners use it as a preferred solution to easily make up for unexpected cash shortages and to keep their operations running. After all, it’s not unusual for new businesses to experience cash shortfalls a few times a year. Although this is not a problem for businesses managed by more experienced founders, cash crunches can still happen due to unexpected events such as emerging market trends and supply chain issues.

While most cash shortages are not especially serious, they can impact a business’s ability to cover operational expenses such as employee salaries, equipment maintenance, and rent. If these shortfalls happen frequently enough, they can potentially put the business’s long-term stability at risk.

What’s more, even though paying off operational expenses is important, most cash shortfalls are not big enough to merit a bank loan. Even in cases where a bank loan would be possible, providing the documentation would often be tedious and not worth the effort.

Grab Quick Cash offers Grab merchant-partners a simple way to cover these common cash crunch issues. With its hassle-free application process, fast cash disbursement, easy payments, and interest rates lower than the usual bank alternatives, Quick Cash gives your small business the flexibility it needs to keep growing.

What Are the Benefits of GrabFinance’s Quick Cash?

GrabFood merchant-partners can expect the following benefits when they use GrabFinance’s Quick Cash:

Cash flow emergencies are a common issue for startups, especially in the foodservice business. Quick Cash offers GrabFood merchant-partners an easy, low-interest alternative to bank loans and most non-traditional loan channels.

With interest rates lower than most other standard business loan options, Quick Cash is an affordable way for merchant-partners to survive and thrive during cash supply emergencies. Quick Cash ensures your food business can continue operations and pursue growth even in difficult market conditions.

Applying for a cash advance through the Quick Cash program couldn’t be easier. The entire process can be done online, with no additional documents required. To complete your application, all you need to do is confirm your Grab Merchant details. Our team will then check your business’s data and give you a personalized cash advance amount that you can easily afford.

With fewer forms to fill out, you can immediately work on the other things that matter to your business.

From submitting your application to cash disbursal, the entire process of taking out a cash advance only takes less than 7 days. This makes GrabFinance’s Quick Cash cash advances the perfect way to cover any unexpected cash flow issues.

Cash advances through the Quick Cash program are paid for through automatic micro-deductions from your daily earnings. Because you’ll only get cash advances that you can easily afford, you can stop worrying about payments and focus on delivering customer satisfaction.

What Else Can You Do with a Cash Advance from Quick Cash?

Cash advances from Quick Cash aren’t just for covering cash flow issues. They’re a great way for your business to get the liquidity it needs to seize opportunities as they arise.

You can use Quick Cash cash advances to do the following:

• Hire urgently needed employees
• Pay for urgent equipment repairs, replacements, or upgrades
• Expand your operating hours
• Re-open outlets
• Revamp your website
• Quickly bring your store up to code
• Buy critical inventory items
• Launch time-sensitive or seasonal marketing campaigns
• Engage in product research and development

Grab Puts Your Success First with Quick Cash

Cash advances from the Quick Cash program give GrabFood merchant-partners a safe and efficient way to cover unexpected shortfalls and take advantage of rare market opportunities.

Thanks to their accessibility, hassle-free application process, fast processing, and easy automatic payments, these exclusive low-interest cash advances are a great way to boost a business’s liquidity right when it needs it the most.

Grab is constantly developing ways to provide its merchant-partners new ways to grow and reach more customers. Apply to be a GrabFood merchant-partner today to access GrabFinance’s Quick Cash and other exclusive benefits. Check out our Grab Help Centre to learn more about how Quick Cash works.