Finance firm sets loan portfolio target

MANILA, Philippines - Negosyong Pinoy Finance Corp. (NPFC), one of the fastest growing financing companies in the country, is eyeing to grow its loan portfolio to P1 billion in the near term.

NPFC president Rico Coligado, in an interview with The STAR, said they are planning to raise in the next three to five years about P700 million of the P1 billion portfolio through borrowing and P300 million from equity.

He said they have recently received an approval from the Landbank of the Philippines for a P15 million loan facility.

“Our projection is that it will reach P120 million by the end of the year. The company is relatively young. We are only on our third year in operation.” he said.

NPFC, an SME- focused financial company which provides loans and other services to entrepreneurs and small businesses, has a portfolio of only P90 million as of end-October 2013. Aside from the Philippines, NPFC also operates in Colombia.

Coligado said they expect to serve some 300 new SMEs in 2014.

He said they are hoping to expand the operations in other areas in the country such as in Davao.

“We call it Three Three Three in 2014. Basically,we would like to disburse Three Hundred Million in 2014.We would like to help 300 new SMEs in addition to what we have now and hopefully although this will be a challenge, I can convince the board to put up another lending office in Davao. Right now we are already in Cebu,so Manila and then Cebu and hopefully we can add Davao maybe in the middle of 2014, depending on what conditions the board will impose before we put up the third office.So its project 333 in 2014,” he said.

In March 2011, NPFC started operations, piloting SME loans in Rizal province.

The company was conceptualized by Coligado and George Petty, who were good friends for over a decade, upon the realization that no one is servicing the “Missing Middle” and that the microfinance industry is already over-served.

“George and I both understood the industry well and knew that by setting up NPFC, given its more refined business model, it would have a greater impact on SME development and that the effect will trickle down to the grassroots of the community where it is operating,” he said.

NPFC was set-up as a private stock corporation authorized by Securities and Exchange Commission to operate as a financing company.

The company is an affiliate member of Venture South International (VSI) which is located in Geneva, Switzerland. VSI also owns similar companies in Columbia (VSI Columbia) and Uganda (VSI Uganda), NPFC being the biggest among the three.

Its head office is located in Pasig City with clients in Metro Manila, Region 2, Region 3, Region 4A and Region 7.

Currently operating with 20 employees, majority of whom handle credit operations, NPFC which is classified as a non-bank financial institution (NBFC), aims to be different from other traditional lenders by focusing more on supporting the “missing middle” with emphasis on businesses which could provide more jobs, promote gender equality, produce greater economic wealth and generate taxes for the government.