Asialink boosts SME lending by P1 billion

MANILA, Philippines — Asialink Finance Corp. boosted its lending by P1 billion for small and medium enterprises (SMEs) that are finding it hard to borrow from banks.

State-owned Small Business Corp. (SBC) provided P600 million to Asialink for relending to SMEs, while Yuanta Savings Bank (formerly Tongyang Savings Bank) extended P400 million.

Asialink CEO Roberto Jordan said small and medium companies are the backbone of economies. “They provide jobs in all corners of our country and help the economy grow. They are a strategic economic and social pillar and therefore should be supported,” he said.

While big as a sector, their relatively insignificant individual sizes are a hindrance to getting bank loans because of the tight lending policies and restrictions banks need to comply with.

“The big banks are also not designed to lend small amounts and work with hundreds of thousands of such small borrowers,” Jordan said.

Asialink lends about P1.3 billion per month to companies that find it hard to borrow from banks.

“Asialink fills that gap. We have more than 45,000 borrowers and our repayment rate is higher than that of banks. We charge higher than bank rates but we can approve a loan within a day for repeat clients and require fewer documentation. In the end, as their businesses grow, everybody is happy,” he said.

According to Jordan, there is still so much to be done in the sector that requires at least hundreds of billions of pesos each year to help these unbanked companies.

“Asialink will continue to grow with these corporations. The more funds we raise, the more we can lend to them for their businesses to prosper,” he said.

Asialink recently secured additional funding of some P2 billion from its credit lines with state-run Development Bank of the Philippines, Cebuana Lhullier, Small Business Corp., Philippine Trust Co. and Veterans Bank.

Last year, the earnings of Asialink jumped by 43 percent to P2.65 billion on the back of a 44-percent surge in revenues to P3.1 billion fueled by a post-COVID recovery and robust demand for second-hand cars.

Asialink opened additional branches, augmented its sales team and partnered with more car dealers, translating to a 27 percent jump in releases to P9.12 billion in 2022.

The financing firm is planning to increase its footprint to 160 branches by end-2023.