Fintech opens P100 million credit facility for MSMEs

Elijah Felice Rosales – The Philippine Star
I show You how To Make Huge Profits In A Short Time With Cryptos!

September 17, 2024 | 12:00am

MANILA, Philippines — Salary-on-demand startup Advance has signed a P100-million agreement with Cebuana Lhuillier to open a credit line for small businesses in need of capital.

Advance is partnering again with Cebuana Lhuillier for the launch of a credit facility that seeks to provide financing to micro, small and medium enterprises (MSMEs) for salary advances.

Advance CEO Jaime de los Angeles said the P100-million deal ensures the startup can scale up its lending coverage for MSMEs, which are always on the brink of capital shortage.

Apart from this, De los Angeles said bringing in another credit line for MSMEs ensures that their segment has access to immediate capital in times of emergency. Advance hopes that through this, it can contribute to the push for financial inclusion in the Philippines.

Cebuana Lhuillier chief financial officer Cliff Cabungcal said the pawnbroker decided to expand its collaboration with Advance to support the funding needs of small businesses. It believes that the credit program would also help MSMEs speed up their growth.

“With this signed loan facility agreement solidifying our partnership, we, at Cebuana Lhuillier, are excited to see how Advance would unlock the growth potential of businesses across industries,” Cabungcal said.

In 2022, Advance and Cebuana Lhuillier teamed up for the launch of Cebuana Lhuillier Advance for the provision of on-demand loans for employees.

The product enabled companies to extend salary advances to their employees without cost or liability to them.

Advance, as a salary-on-demand company, offers an option for employees to access a portion of their earned wages before payday. This removes the need for workers to wait until the end of the month to receive their pay, allowing them to get and spend whatever they have earned so far.

This is where Advance enters the picture. For MSMEs who manage just minimal resources with no room for early payouts, Advance can integrate its system with their payrolls and shoulder the salary demands for the meantime.

In 2023, Advance raised $16 million in capital through a pre-Series A funding round from Ho Chi Minh-based investor Do Ventures and debt provider Lendable.

Advance offers its salary-on-demand services in the Philippines and Vietnam, and has its eyes set on growing further across Southeast Asia.

Be the first to comment

Leave a Reply

Your email address will not be published.


*