PNB, Discovery Capital partner to expand SME financing
PNB and Discovery Capital Finance Corporation formalize a partnership to scale up SME financing across the country. From left: Engr. Allan Yumul, Discovery chief technology officer; Trizza Anne Marie Martino, Discovery chief financial officer; Luigi Martino, Discovery chief operating officer; Diosdado Salang Jr., Discovery president and CEO; Sherlyn Nicolas, PNB head, South Luzon Commercial Banking Division; Mildred Alcantara, PNB head, Calabarzon Business Center; and Keith Joshua Dumpit, PNB relationship manager.
Photograph courtesy of PNB
Philippine National Bank (PNB) has entered into a strategic partnership with Discovery Capital Finance Corporation (DCFC) through the signing of a loan facility agreement aimed at expanding financing support for small and medium enterprises (SMEs) across the country.
PNB said the collaboration is expected to boost access to capital for SMEs, particularly those in provincial and underserved areas, supporting business expansion, job generation, and local economic growth.
Under the agreement, PNB will provide DCFC with additional funding capacity, which the finance firm will use to extend more flexible and accessible financing solutions to its SME clients. The initiative targets businesses that often face challenges securing loans due to limited collateral or short credit histories.
The partnership brings together PNB’s scale and financial resources with DCFC’s specialized SME lending expertise and localized market presence. PNB noted that the move aligns with its long-standing commitment to the SME sector, widely regarded as the backbone of the Philippine economy.
“Our agreement with PNB is a clear signal of Discovery Capital Finance Corp.’s commitment to financial inclusion for the underserved business community,” said Diosdado Chua Salang Jr., president of DCFC. “By partnering with institutions like PNB, we can effectively amplify our reach beyond our branches, ensuring that crucial capital flows into regional economies where it is needed most.”
The loan facility is expected to support working capital requirements of SMEs, enabling them to finance inventory, fulfill large orders, acquire equipment, and manage cash flow more efficiently. PNB said the added liquidity could help accelerate business growth and create additional employment opportunities in local communities.
Industry data show that SMEs account for more than 99 percent of registered businesses in the Philippines but continue to receive a disproportionately small share of formal bank lending. PNB said partnerships with non-bank financial institutions such as DCFC are critical in addressing this funding gap.
The collaboration reflects a broader trend in the financial sector, where banks work with specialized finance companies to penetrate niche markets and improve credit access. For DCFC, the loan facility also serves as a vote of confidence, potentially lowering its cost of funds and allowing it to offer more competitive rates to borrowers.