First Circle, a financial technology company, has extended its partnership with the Department of Trade and Industry (DTI) to offer loans to small and medium enterprises (SMEs). This collaboration aims to enhance the competitiveness and growth of the underfunded sector.
The renewed memorandum of understanding between First Circle and the DTI, signed on July 13, strengthens their commitment to supporting SMEs, which was initiated in 2018.
Since its inception, First Circle has provided a total of P8.5 billion in business loans to over 3,450 companies. Notably, 1,743 of these SMEs availed themselves of loans during the pandemic, which helped sustain their operations amid the economic downturn caused by COVID-19, global supply chain disruptions, and high inflation.
First Circle’s flagship product, the revolving credit line, does not require collateral. Borrowers only pay when they use the credit line, making it a flexible financing option. With their proprietary underwriting processes, First Circle offers SMEs financing up to P20 million at a monthly interest rate as low as 0.99 percent.
Unlike traditional lenders, First Circle also caters to new businesses. SMEs operating for one year or less face fewer financial barriers when seeking financial support from First Circle.
“Evaluating SMEs based on their operational age rather than merit will only push them to borrow from predatory lenders,” said Alan Smyth, Head of Acquisitions at First Circle.
The timing of the partnership renewal is opportune, as it coincides with the ratification of the Regional Comprehensive Economic Partnership Agreement. This agreement will enable local SMEs to enter larger overseas markets, promoting their growth and development.
READ: Fintech firm taps DTI to address MSME funding needs
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
