Secured Term Loan
We structure long-term debt with terms tailored to our client's needs.
We’d be glad to learn more about your company and discuss the best ways we can help.
A secured term loan is a long-term financing option that allows businesses to raise capital using commercial property or land as collateral.
In the Philippines, secured term loans are commonly used to fund the development or refinancing of income-generating properties such as office buildings, retail spaces, warehouses, and cold storage facilities.
This type of loan is ideal for companies looking to unlock value from real estate assets, manage large capital expenditures, or fund long-term business expansion.
To apply for a secured term loan in the Philippines, your company must pledge fully owned, income-generating properties such as:
Completed commercial buildings or strata units
Warehouses, logistics hubs, or cold storage assets
Vacant land with a clear development plan and government approvals
The bank evaluates the loan based on the property’s title, market value, rental income, and legal ownership. In most cases, borrowers are required to provide supporting documents including:
Property title and valuation reports
Lease agreements, tax declarations, and insurance policies
Rent roll and historical occupancy
Forecasted cash flow and repayment capacity
Loan repayment is typically made through property income, asset sale, or refinancing. Some loans may offer extended repayment timelines but most Philippine banks enforce a fixed term with little flexibility, especially if asset sale or refinancing is delayed.
Access to Large Capital – Raise significant funds by leveraging high-value real estate assets.
Long-Term Repayment – Enjoy structured repayments over multiple years, ideal for CAPEX-heavy or long-term business strategies.
Lower Interest Rates – Since the loan is secured, lenders typically offer more favorable interest terms compared to unsecured options.
Retain Ownership – Use your real estate as leverage without giving up equity in your company.
- Asset Ownership and Documentation – Borrowers must provide clean property titles and clear documentation on tenancy, valuation, and legal control. Properties with joint ownership or JV arrangements require careful legal review.
- Longer Processing Time – Banks require detailed credit evaluations and legal due diligence, often involving months of preparation and registration with the land registry office.
- Not for Specialized or Farm Land – Secured term loans are generally not suitable for farmland or niche assets that cannot be commercially valued or legally pledged.
A secured term loan is a strategic financing option for companies with strong real estate assets and long-term capital needs. While the process involves more documentation and due diligence than other loans, it provides access to large capital at better rates, allowing businesses to grow without compromising ownership.
At Bayfront Capital Advisors, we guide you through the entire process (valuation to structuring and bank coordination). Our expertise in the Philippine real estate and lending landscape ensures your secured term loan is done right from the start.
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