Consumer finance platform Billease has secured a P1-billion credit facility from Philippine National Bank (PNB), adding one of the country’s largest universal banks to its local funding base.

The facility, Billease’s first financing arrangement with PNB, uses the Personal Property Security Registry (PPSR), giving the bank a registered first-rank claim over a pool of Billease’s consumer loan receivables.

Growing confidence

Billease said the transaction reflects growing confidence among major Philippine banks in lending against consumer finance receivables as the company expands its business and increases its use of local funding.

“We are deliberately expanding our local funding base here at home, with the country’s leading banks, because that allows us to keep serving more Filipinos with affordable, responsible credit. PNB coming on board is a strong signal. It says the largest institutions in the market are ready to fund this kind of lending when it is done with discipline,” said Georg Steiger, co-founder and CEO of Billease.

“We have built a profitable business that scales without compromising on underwriting standards, and relationships like this let us fund that growth locally, on improving terms,” he added.

Alphaprimus Advisors served as transaction adviser for the facility.

More customer loans than the amount it borrows

Under the structure, Billease pledges more customer loans than the amount it borrows, ensuring that the collateral remains above the outstanding facility. The loan pool is also regularly refreshed, with repaid or delinquent loans replaced by new receivables.