For a higher line
Collateral-based business financing for a higher credit line
Ready for a bigger move? If you own an asset you're willing to pledge, collateral-based financing from Datung can support a higher credit line.
- One application for all 6 kinds of financing
- Just 3 things to apply
- Pre-approval usually within about 1 hour
- Final answer usually within 12 hours
Times are during business hours. Applications that come in at night start at 8 AM. Our aim, not a guarantee.
Collateral-based financing
What is collateral-based financing?
With collateral-based financing, you pledge an asset you own as security for your financing. Because the financing is secured by that asset, it can support a higher credit line.
Collateral isn't required to apply. It's an option for owners who want a higher line, for example to open a second warehouse or branch, or to take on a bigger product line.
How collateral-based financing works, in practice
- Apply with the same single application, and mention the asset you'd like to pledge.
- Your credit officer explains what we need to see, such as the collateral papers.
- We review the asset alongside your business.
- If approved, the terms, including how the collateral is held and released, are set out in your loan documents before you sign.
Collateral-based financing at a glance
- What it does
- Pledge an asset you own as collateral, which can support a higher credit line.
- Best for
- Owners ready for a bigger move who have assets to put up.
- To apply
- The same 3 things as every kind of financing: the online form, 1 valid ID and your last 3 months of bank statements.
Who it's for
Who collateral-based financing is for
Datung funds the established suppliers and distributors one level up the supply chain: the businesses that keep sari-sari stores, carinderias, talyers and contractors stocked on terms.
- Owners ready for a bigger move who have assets to put up
- Suppliers and distributors expanding into a new warehouse, branch or product line
- Businesses that want a higher line than their cash flow alone supports
- Built for established businesses (typically ₱6M+ in annual sales), in any industry.
How to apply
How to apply for collateral-based financing
One application covers all 6 kinds of financing. You don't need to get the product exactly right: tell us what the money is for, and we'll match you to the best fit.
Step 1: Apply once, online
About 10 minutes
Fill in the form with 1 valid ID and your last 3 months of bank statements. Under “What kind of financing do you need?”, pick collateral-based financing, and tell us what the money is for. No account, nothing to print.Step 2: Review and pre-approval
Usually within about 1 hour
A credit officer reviews your application. We aim to give you a pre-approval within about 1 hour, and we may ask to see the collateral papers.Step 3: Business visit
Within about 2 hours of pre-approval
A credit officer comes to see your business for themselves. We'd rather see it than judge it from paper.Step 4: Your final answer
Usually within 12 hours
We aim to give you a final answer within 12 hours. If it's a yes, the interest rate and all charges are disclosed in full before you sign. If it's a no, we tell you right away.
Times are during business hours. Applications that come in at night start at 8 AM. These are our aims, not guarantees.
Ready to apply for collateral-based financing?
Apply in about 10 minutes with 1 valid ID and your last 3 months of bank statements.
What we look at
What we look at for collateral-based financing
Every application is reviewed by a credit officer, who looks at the whole business, not just a checklist. What we can offer depends on that review, and we never promise approval.
- The asset you'd like to pledge, and its papers
- Your business's cash flow, from your latest bank statements
- What the financing is for
- Your ability to repay from the business itself, not just the collateral
- What our credit officer sees at the business visit
FAQ
Collateral-based financing questions
Straight answers about collateral-based financing and applying with Datung.
What kind of asset can I pledge?
Can I use collateral to get a higher credit line?
What documents do I need?
Will I be approved?
What interest rate will I pay?
Ways we can fund you
Other ways to fund your business.
You don't need to pick the right product first. Apply once with the same 3 things, tell us what the money is for, and we'll match you to the best fit.
- Confirmed orders
Purchase order (PO) financing
Funds to buy the goods for a confirmed customer order, so you can say yes to the big one.
Best for: Distributors, dealers and importers with orders bigger than their cash on hand.
Learn more about PO financing - Unpaid invoices
Invoice factoring
Get cash for invoices you've already issued, instead of waiting for your customers to pay.
Best for: Suppliers whose customers pay in 30, 60 or 90 days.
Learn more about invoice factoring - Post-dated checks
Check rediscounting
Turn your customers' post-dated checks into cash now, instead of waiting for them to clear.
Best for: Wholesalers and distributors holding their customers' PDCs.
Learn more about check rediscounting - Draw, repay, repeat
Revolving credit lines
An approved limit you can draw from, repay and draw again whenever the business needs it.
Best for: Suppliers who restock every month to keep their customers supplied.
Learn more about revolving credit lines - Working capital
Business loans
A lump sum for inventory, equipment, payroll or your peak season, repaid over 3 to 12 months.
Best for: Any established business that needs cash to keep moving.
Learn more about business loans
All 6 start from the same single application.
For some, we may ask to see the checks, purchase order, invoices or collateral papers during review. What we can offer depends on our review of your business.