What is the difference between a lending company and a financing company?
Last updated: 2026-07-11 · Educational content; not legal advice.
Short answer
Both are non-bank credit providers regulated by the SEC, but they are chartered under different laws: a lending company operates under RA 9474 (Lending Company Regulation Act of 2007) and typically extends smaller direct consumer loans, while a financing company operates under RA 8556 (Financing Company Act of 1998) and can also do leasing, receivables discounting, and installment financing on a larger scale. For a borrower the practical point is the same: whichever type it is, it must be SEC-registered AND hold a Certificate of Authority to lend, its online lending platform must be recorded with the SEC, and it is bound by the same interest ceilings (SEC MC 3, s. 2022) and anti-harassment rules (SEC MC 18, s. 2019).
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Frequently asked
Does the difference change my rights as a borrower?
No. Both are SEC-supervised and both need a Certificate of Authority; both are covered by the SEC MC 3 (2022) interest ceilings for covered small loans, the SEC MC 19 (2019) disclosure rules, and the SEC MC 18 (2019) ban on harassment. Your protections are the same either way.
Which one runs the loan apps I see?
Both can. Many popular apps are operated by financing companies, others by lending companies; a few consumer-credit brands sit inside banks (BSP-supervised) instead. What matters is that the specific app is on the SEC's recorded OLP list — see /answer/how-do-i-know-if-an-online-lending-app-is-registered.
Are banks the same as these?
No. Banks and their credit-card arms are supervised by the BSP, not registered as SEC lending/financing companies. Lending and financing companies are the non-bank credit providers under RA 9474 and RA 8556.
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