Stronger Asialink targets truck loans

After a $130-million investment from the International Finance Corp. (IFC) of the World Bank Group, financing firm Asialink Finance aims to expand truck loans for small and medium enterprises (SMEs).

The investment will also be shared with Global Dominion Financing Corp. and South Asialink Finance Corp.

Asialink Finance Group of Companies founder and chief executive officer Robert Jordan Jr. said the firm eyes over P7 billion in truck loans receivables amid the growing need for food across the country.

“Truck loans are still very low compared to the size of the related industry. this product is important especially in Visayas and Mindanao because they are used for transporting agricultural goods,” he said Tuesday during the contract signing of the investment deal with the IFC.

Asialink offers loans for secondhand trucks to SMEs with limited budgets, and loans tied with trucks as the collateral for borrowers who need immediate cash.

Jordan said the market for truck loans remains big as other lenders find this product risky.

“Not many players are in this space, especially for secondhand trucks.”

“Banks have financial concerns because the depreciation is very fast,” he shared.

“But that’s where we’re strong because we try to understand the product, the spare parts, and replacement of the engines,” Jordan continued.

With the government’s positive economic outlook for this year, Jordan expects Asialink’s total loan portfolio to expand by at least 30 percent.

The Asian Development Bank (ADB) reported Asialink’s funds for SME loans increased to P13 billion from P8.8 billion.