Manila, Philippines, 30 January 2024– As fund sufficiency remains a major challenge for MSMEs, particularly in emerging markets, 917Ventures’s loan aggregator Fundspace is offering MSMEs and local entrepreneurs a swift, user-friendly, and easily accessible digital solution to bridge the financing gap in the Philippines.
“No one can deny the outsized impact of micro, small, and medium enterprises (MSMEs). According to the United Nations Development Programme, these businesses contribute 40% to the country’s gross domestic product (GDP) and employ 63% of the local workforce. Despite their substantial contributions, many MSMEs continue to be underfunded. This hinders the growth of these businesses, and in turn may hinder the growth of the economy,” said Martin Luchangco, Entrepreneur-in-Residence at 917Ventures.
Straightforward Application Process
FundSpace caters to enterprises of all sizes, ensuring easy access to the funding to ensure business growth and sustainability. It connects borrowers to different lending partners offering various loan products through an accessible mobile-friendly platform.
Entrepreneurs can start their financing journey in four simple steps:
- Visit the FundSpace website
- Specify the loan amount
- Submit necessary business documents (such as Barangay and Mayor’s Permits, DTI Permits, valid IDs, and the latest three months bank statements), and;
- Wait for its dedicated account managers to get in touch.
- The platform has a quick 14-day loan approval timeline, a significant improvement over the typical 60-day timeline seen in traditional banks.
Together with its lender partners that include Alon Capital, iGlobal, Mt Fuji Lending, BPI Business Banking, First Circle, Zenith Capital, and Esquire, FundSpace provides loans from P5,000 to upwards of P100 million.
“It’s important to provide flexible loan amounts to better serve MSMEs across the board–from those who are just starting out, to those who want to aggressively grow their businesses,” Luchangco explained.
Since launch, FundSpace has facilitated loans across multiple businesses, including industries like retail, construction, food and beverage, services, and software industries, underscoring its position as a valuable partner of MSMEs, helping propel them toward sustainable growth and success.
Inclusive Access to All Types of Businesses
Data from the United Nations Development Program showed that more than half of MSMEs (67%) in the Philippines face challenges when it comes to securing funding.
Many of these entrepreneurs rely on personal savings or loans from family and friends to start or expand their businesses, as banks and other financial institutions often subject entrepreneurs to a lengthy, tedious process, demanding extensive documentation. Rigid collateral requirements and high-interest rates pose additional barriers, limiting the accessibility of crucial financial resources and cost of business for these enterprises.
In response to these challenges, FundSpace was developed to simplify the borrowing process.
Features to look forward to
Beyond continuing to expand its loan offerings, FundSpace plans to launch a credit scoring feature later in the year. This feature is designed to streamline the application process for borrowers by reducing the required documentation. Simultaneously, for lenders, it will facilitate quicker assessments and enable the platform to deliver higher-quality leads.
FundSpace’s commitment to innovation not only enhances the user experience for borrowers but also strengthens the efficiency and effectiveness of the lending process for its valued network of financial partners.
“Empowering MSMEs with easy financial solutions is both an investment in their growth and in fostering economic resilience. By removing financial barriers for these enterprises we are contributing not only to their success but also to the sustainable development of communities and the Philippine economy,” Luchangco added.
Learn more about FundSpace by visiting fundspace.ph.
