MANILA -GoTyme Bank and PayMongo Philippines Inc. have launched loan products targeting small and medium enterprises (SMEs), which they can utilize to grow operations.
Entrepreneurs may avail themselves of loans of up to P500,000 in two minutes without a collateral required.
Under the deal, GoTyme will offer flexible loan terms for the applicants. A flat fee will be collected from SMEs.
Merchants may then set up a flexible pay schedule or even base it on their daily sales. Payments will be tracked through PayMongo’s dashboard.
“By making the process easier and less intimidating, merchants are better empowered to make the best choices for their business,” GoTyme Bank co-CEO Albert Tinio said.
“This collaboration is a game-changer for PayMongo merchants, unlocking additional capital to propel their online enterprises toward unparalleled success,” PayMongo CEO Jojo Malolos added.
A study by the Bangko Sentral ng Pilipinas noted that borrowing was the primary way for Filipinos to meet their financial needs.
A TransUnion report for the fourth quarter showed, however, that only 40 percent of Filipinos believed they have adequate access to credit lines, a drop from 45 percent a year ago.
SMEs usually find it difficult to secure loans from banks due to lack of credit profile.
Financial technology players are trying to address demand from SMEs by offering alternative sources of financing.
Based on 2021 Global Findex Database, Filipino adults owning an account with a bank or an e-wallet rose to 51 percent in 2021 from 34 percent in 2017. INQ