First Circle, DTI renew partnership to promote SME growth
MANILA -Financial technology company First Circle has renewed its partnership with the Department of Trade and Industry (DTI) to provide loans for small and medium enterprises (SMEs), aiming to promote competitiveness and growth of the underfunded sector.
First Circle said it had signed a memorandum of understanding with the DTI on July 13, which renewed its commitment with the government agency that began in 2018.
According to the company, it has disbursed a total of P8.5 billion in business loans to more than 3,450 businesses.
Of these SMEs, First Circle said 1,743 borrowed during the pandemic period, with the loans providing much-needed support during the economic downturn brought about by the COVID-19 pandemic, as well as the resulting global supply chain issues and high-inflation environment.
Under First Circle’s no-collateral flagship product, the revolving credit line, borrowers only pay when they use the credit line.
The company said that with its proprietary underwriting processes, SMEs can get up to P20 million in financing for as low as 0.99 percent monthly interest.
Its credit line is also open even to new businesses, which means that SMEs operating for one year or less will have fewer financial barriers to overcome.
“Evaluating SMEs based on their operational age rather than merit will only push them to borrow from predatory lenders,” said First Circle head of acquisitions Alan Smyth.
“With First Circle, any business owner qualifies for a credit line as long as they have an annual business revenue of at least P5 million, is a bona fide Philippine resident, and has their business registered with (Bureau of Internal Revenue) and the DTI or the (Securities and Exchange Commission,” he added.
The company added that the renewal of the partnership is timely with the ratification of the Regional Comprehensive Economic Partnership Agreement, citing that it will help local SMEs participate in bigger, overseas markets.
READ: Fintech firm taps DTI to address MSME funding needs
