Globe-backed startup offers MSMEs loans up to P100 million

MANILA, Philippines — A startup backed by Globe Telecom Inc. is extending up to P100 million in loans to micro, small and medium enterprises (MSMEs) that require additional capital to expand their business.

Loan aggregator FundSpace is tying up with MSME lender Esquire Financing Inc. for a program that seeks to provide one of the highest amount of borrowings for small-scale companies.

FundSpace and Esquire Financing are extending loans to MSMEs ranging between P50,000 and P100 million, considered to be one of the largest lending available for the segment.

The loans are placed with an interest rate of as low as 1.5 percent to a maximum of 3.5 percent. Borrowers may also seek payment arrangements of up to 12 months.

Likewise, FundSpace and Esquire Financing process the loans 12 times quicker than traditional methods to support MSMEs in need of emergency financing. On the other hand, disbursement is eight times faster than usual.

FundSpace serves one of the startups being developed by 917Ventures, the corporate incubator of Globe, while Esquire Financing offers MSMEs loans with minimal requirements.

917Ventures entrepreneur in residence Martin Luchangco said the objective of the partnership is to open a loan facility that MSMEs may access to fund their expansion projects.

“With our newest partner in Esquire Financing Inc., FundSpace continues to offer additional and flexible loan options, empowering MSMEs in the Philippines to realize their full potential, as our platform’s competitive interest rates and efficient application process ensure that local businesses have a more accessible avenue to secure funding,” Luchangco said.

To qualify for FundSpace’s loan, applicants must be a Filipino residing in the Philippines with a business registered with the Department of Trade and Industry and a local government unit. They must also be aged between 21 and 70 at the time of the maturity of the loan.

If qualified, they have to go to FundSpace’s website to input their loan details and choose a loan partner. Requirements vary depending on the loan partner, but the common are bank statements, business permit, proof of billing and valid ID.

Upon the approval of the loan, the amount is disbursed directly to the borrower’s bank account.

As a startup, FundSpace works with financing institutions in coming up with loan platforms that cater to the different needs of every MSME.