Asialink Finance Corporation is set to expand support for women-owned small and medium enterprises (SMEs) through a new $115 million funding from the Asian Development Bank (ADB), HSBC and Security Bank Corporation.

From the total fund, ADB and HSBC are contributing $50 million each while Security Bank is lending $15 million.

With this financing package, ADB said Asialink’s funds for SME loans increased to P13 billion from P8.8 billion. Asialink aims to mobilize more than half of the funds for growing women-owned SMEs through customized loans.

Wider financial services

“We are optimistic that with this collaboration, we can continue to expand our presence nationwide, introduce personalized loan products, digitize and innovate our loan processes, and ultimately ensure that entrepreneurs have access to reliable financial solutions,” Asialink Finance Corporation chief executive officer Robert Jordan Jr. said.

Based on data gathered by ADB, Filipino SMEs seek around P67 billion to P180 billion in business loans to sustain and expand their operations.

ADB said lenders usually require borrowers’ formal financial records in the form of bank accounts.

However, it found only 24 percent of Filipino women entrepreneurs conduct business using bank accounts compared to 50 percent of men.

“This project showcases ADB’s strong commitment to advancing financial inclusion and growth of SMEs, which are key drivers of the Philippine economy,” ADB vice president for Market Solutions Bhargav Dasgupta said.

Women-owned businesses made up 44.1 percent of the total 55,432 borrowers of Asialink in the first quarter.

A chunk or 32.6 percent of all borrowers were engaged in trade, followed by food and support services (27 percent), and transportation and communication (19.6 percent).