The Philippine Chamber of Commerce and Industry (PCCI) is spearheading an initiative to develop a credit rating index tailored for small businesses.
PCCI vice president Perry Ferrer said the initiative seeks to empower small enterprises by providing them access to loans from established financial institutions, addressing a pressing need exacerbated by the post-COVID digital transformation.
“We are brainstorming at the PCCI on how we could develop a credit score or credit rating for enterprises, whether you’re an online seller or a small, medium, or micro company. Once you have that credit rating or credit score, you can loan from legitimate sources with lower rates,” Ferrer said at the sidelines of the second PCCI Kapihan series Monday.
The proposed credit rating index would offer a standardized evaluation of creditworthiness, unlocking opportunities for these businesses to access loans at more favorable rates from reputable sources.
“Until we create that credit score or credit rating, it will be challenging for these entrepreneurs to get loans from legitimate sources,” Ferrer said.
The PCCI said it is focusing on small businesses in the initial phase of the initiative due to their growth potential and relative stability compared to micro enterprises.
Many of these businesses have transitioned to online platforms and function as sole proprietorships, further complicating their access to traditional loan avenues.
Ferrer also highlighted the PCCI’s commitment to assisting small businesses in venturing into international markets.
The organization is actively exploring avenues to improve product quality, packaging and certification to facilitate exports and create new income streams for Filipino entrepreneurs.
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