JK Capital Finance locks in P300-million credit guarantee

JK Capital Finance, Inc. (JK Capital) entered into a credit guarantee agreement with the Philippine  Guarantee Corporation (PHILGUARANTEE) in late October of 2024. This partnership aims to channel credit to preferred economic sectors, ultimately fostering job creation, and supporting  MSMEs (Micro, Small, and Medium Enterprises).  

The agreement is a form of insurance for JK Capital, a pro-rata risk-sharing guarantee of losses on loans it extends to MSMEs — for up to P300M. “This is a milestone. With this partnership, we can  serve more clients and cover more industries by lowering our risk premium and consequently, the  rates we offer.” Jaskaran Singh President & CEO said. “Ultimately, this will benefit the local  economy and the small businesses we serve. We are happy and thankful for the government’s partnership,” he added. 

How Does This Benefit SMEs? 

Accessing reliable funding is a major hurdle for many SMEs in the Philippines, as they often face long processing times and complex documentation requirements. The ability to deploy funds quickly and efficiently can determine whether a business will merely survive or thrive in a competitive market. 

The latest data from the Philippine Department of Trade and Industry (DTI) reveals that MSMEs make up 99.5% of the country’s total businesses and employ over 5 million Filipinos. These enterprises not only drive employment but also contribute significantly to the economic vibrancy  of local communities, fueling development and nurturing an entrepreneurial spirit. 

JK Capital’s credit guarantee agreement marks a pivotal step for the businesses it serves. Securing  this guarantee was a rigorous process that highlights JK Capital’s commitment to supporting SMEs  and its expertise in managing risk. Let’s explore what this credit guarantee entails and how it stands  to benefit local businesses in the Philippines. 

A credit guarantee is a financial safety net provided by a third party, such as a government agency. This minimizes the risk for lenders like JK Capital, encouraging them to extend more credit to businesses. With reduced risk, lenders can lower interest rates and make financing more accessible nationwide. 

For many SMEs, traditional financing can be overwhelming due to high interest rates, strict credit requirements, and limited collateral. These barriers often hinder growth and development.  

Through its credit guarantee agreement with PHILGUARANTEE, JK Capital is now better equipped to offer SMEs more favorable loan terms. The added security of this guarantee enables  JK Capital to provide lower interest rates, making loans more affordable for small businesses.  

Additionally, this credit guarantee allows JK Capital to extend larger loan amounts, helping clients fund ambitious projects and expansions. SMEs with limited collateral or developing credit histories can now access loans more easily, opening doors to new growth opportunities. 

About JK Capital 

JK Capital is a leading financing company dedicated to supporting small and medium-sized  enterprises through accessible and affordable loan solutions. With a focus on growth and  innovation, JK Capital provides the financial resources businesses need to thrive in today’s 

competitive market. To learn more about how JK Capital is working to boost the Philippine  economy, visit its website here. 

JK Capital Products 

JK Capital offers business loans ranging from PHP 100,000 to PHP 10 million, with flexible  repayment terms from 3 to 24 months. With a broad risk appetite, JK Capital provides both secured  and unsecured loan options to suit diverse business needs. Explore JK Capital’s product offerings  in more detail here. 

Grow Your Business with JK Capital 

JK Capital guarantees a fast pre–screening process, providing clients access to essential cash flow  within just 2-3 business days. This quick turnaround allows businesses to cover operating costs,  address shortfalls, and meet their targets more efficiently. For SMEs, in particular, this support  accelerates growth without the need to rely solely on internal funds. 

Capital loans from JK Capital also create opportunities for businesses to expand operational  capacity. With flexible terms, businesses can invest in manpower, technology, equipment, or even  new locations without facing an overwhelming financial burden. 

Moreover, capital loans enhance business liquidity, encouraging businesses to leverage debt  strategically for growth while building a stronger credit profile. This improved reputation can lead  to access to credit lines and other long-term financing solutions from JK Capital. Financing  businesses in the Philippines has never been easier! 

Looking Ahead 

At JK Capital, the company lives by the mission: “We are here to help actualize the goals of small  businesses.” By providing essential financial support, JK Capital strives to foster innovation,  stimulate growth, and contribute to the Philippine economy. Ready to take the next step? Visit our  loans page to learn how to apply! 

The journey doesn’t stop here. JK Capital remains committed to enhancing its services, continuing  the partnership with PHILGUARANTEE, and closely monitoring the impact of the credit guarantee  program.  

JK Capital’s COO, Gursagar Singh, emphasizes, “We look forward to exploring new opportunities  with our clients and helping them achieve even greater success. The credit guarantee is a testament  to JK Capital’s dedication to empowering SMEs and a crucial step toward a more inclusive and  dynamic economy.” 

For more information, visit www.jkcapital.com.ph or contact us at [email protected] | 0917- 137-2847 | 0998-963-2466.

ADVT.

This article is brought to you by JK Capital Finance, Inc.