Micro, small and medium enterprises (MSMEs) are gaining wider access to collateral-free financing as government and private lenders expand credit programs for business growth, disaster recovery and investments in sustainable technologies.

Small Business Corp. (SBCorp) president and chief executive officer Robert Bastillo said the state-owned lender offers financing for business expansion, purchase orders and working capital, as well as rehabilitation loans for enterprises hit by calamities.

Supporting energy transition in the transport sector

“We also support those who are affected by calamities, we have an Enterprise Rehabilitation Financing (program), and we support the energy transition in the transport sector. For example, we provide franchise loans to those who want to shift to electric vehicles,” Bastillo said.

SBCorp is also financing conservation, recycling, waste reduction and environmentally friendly technologies. It gives priority to women, agri-aqua, indigenous, green and creative enterprises.

“A lot of these are very vulnerable to climate shocks, so we’ve been trying to expand our coverage and our services. Even though our resources are small compared to big banks, we try to stretch our resources as much as possible,” Bastillo added.

Lending program

Land Bank of the Philippines is also easing access to credit through its LIFTING MSMEs Lending Program, which offers up to P50 million at reduced interest rates.

Loan assessments now focus more on cash flow and project plans than physical assets.

“Right now, we already dropped the collateral as one of the (requirements) for credit. If you offer collateral, fine; but if there is no collateral, we still accept the loan,” Landbank-Visayas First vice president Allan Bisnar said.

Up to P2M through NegosyoKo Loan

BPI Direct BanKo offers micro-entrepreneurs up to P2 million through its NegosyoKo Loan, while BPI Business Banking provides collateral-free loans of P300,000 to P30 million.

Digital lender GCash also offers eligible merchants up to P2 million through GLoan Negosyo without collateral.