MSMEs funding gets P1-B credit guarantee

‘It’s a credit guarantee that allows us to open up the funnel to a wider pool of MSMEs on a subsidized basis’

Esquire Financing Inc., or EFI, will be expanding its loans to micro, small and medium enterprises or MSMEs with its new P1billion credit guarantee from the state-owned Philippine Guarantee Corp. or PHILGUARANTEE.

“It’s a credit guarantee which allows us to open up the funnel to a wider pool of MSMEs on a subsidized basis,” EFI chairman and chief executive officer Rajan Uttamchandani said in an exclusive interview with DAILY TRIBUNE.

EFI and PHILGUARANTEE signed the agreement for the MSME credit guarantee on Thursday in the latter’s office at BPI-Philam Life Building, Makati City.

As an MSME-centric financing company, he said EFI has helped 25,000 enterprises in the past 13 years.

100,000 client base

Moving forward, Uttamchandani said the firm aims to broaden its client base to 100,000 in the next five years.

EFI has been able to serve more clients partly due to its affordable interest rates of as low as 1 percent per month or lower than those of traditional banks.

Uttamchandani said EFI also continues to maximize technology to reach out to clients online through its desktop and mobile user-friendly website.

“We only have three branches. All lead generations and closing are done online,” he said.

“A lot of our clients came through referrals. As we expand our lending base, more and more clients will be happy with our service and continue to refer us to other clients,” he added.

Credit approvals in three days

EFI offers a maximum of P10 million in unsecured loans and P100 million for secured loans. On average, Uttamchandani said its borrowers request P250,000. He added credit approvals can be made in just three days.

Uttamchandani believes MSMEs will prosper further this year due to “strong” consumer demand and a “growing” population.

“It’s a consumer economy of 110 to 120 million people, and I think all MSMEs have a vision,” he said.

Thus, Uttamchandani said there will be continued growth in wholesale and retail trade and services, especially in restaurants, catering and medical firms.

A first for PHILGUARANTEE

EFI is PHILGUARANTEE’s first non-bank and Securities and Exchange Commission or SEC-supervised partner for MSME growth, PHILGUARANTEE senior vice president Celso Gutierrez told the DAILY TRIBUNE.

He said their partnership followed the state agency’s partnerships with 32 banks that are supervised by the Bangko Sentral ng Pilipinas, or BSP. As a financing company, EFI is supervised by the SEC.