MANILA – First Circle, a Philippine-based financial technology (fintech) firm, is allotting PHP3 billion as revolving credit for small-scale businesses, a company official said on Thursday.
In a statement, First Circle vice president for external relations Benedict Carandang said they target to help at least 10,000 micro, small, and medium enterprises (MSMEs) access its revolving credit offer, which was only available before to large companies.
This works like a credit card, wherein a user can borrow up to the set credit limit.
The company said MSMEs who were previously underserved by financial institutions can now avail a credit limit of up to PHP5 million and can draw down from anytime for a term of up to six months.
“This challenge in financial inclusion inspired and pushed the team to innovate and find ways to deliver financial inclusion to those who need it the most using technology,” Carandang said.
First Circle said it recognizes the challenge for MSMEs to access loans from banks as most of them cannot provide formal documentation and collateral requirements.
In 2018, First Circle partnered with the Department of Trade and Industry to provide loans for MSMEs.
To date, the fintech firm has provided PHP4.5 billion worth of loans to 6,000 small and medium enterprises. (PNA)