Supply chain finance will play a critical role in stabilizing the financial system to support small and medium enterprises. The space is forecasted to cover nearly 15 percent of the cost of the entire volume of goods and services produced by SMEs by 2024.

UnaCash Supply Chain Financing made the prediction following the examination of the Philippines Supply Chain Finance Market Development Report by International Finance Corp. (a branch of The World Bank), which stated that the Philippine market is estimated to have over US$20 billion in “readily available SCF assets to be taken up by banks and NDTLs (non-bank lending institutions that do not take deposits).”

Considering that the country’s gross domestic product is about $394 billion (2021), and MSME accounts for about 40 percent of this indicator, SCF schemes are ready to take on about 13 percent of the annual MSME production, with a level of 15 percent (in terms of about six percent of GDP in 2021) as a very realistic benchmark for SCF companies for the next year, given the high demand for the service and the expected rapid growth in its supply in the local market.

“Supply chain financing is steadily growing its presence in the country as short-term loans have proven effective in supporting small and medium scale businesses, and we are dedicated to covering operational expenses while making it as accessible as possible to business owners. UnaCash SCF is committed to enhancing the reach of its services and allocating proper channels to make disbursement more efficient for future partners,” said Joana Saplan-Mateo, the Head of Product of UnaCash Supply Chain Financing.

UnaCash, an app with a bespoke array of financing solutions for the underbanked, recognizes the potential of the MSME sector in the Philippines, which comprises at least 99.51 percent of the country’s market. Through one of its services, UnaCash Supply Chain Financing, a revolving credit line, and bridged financing facility, readily addresses the gap between suppliers and the market’s demands.