Biz loan provider reaches out to Cebu SMEs

CEBU, Philippines – A business loan provider has expressed interest to offer financing to small and medium enterprises (SME) in Cebu with the establishment of its first provincial branch here.

Esquire Financing Inc. (EFI) said it seeks to boost presence and service-base in the SME market in Cebu and in the whole Visayas region.

EFI President and Chief Operating Officer Navin Uttamchandani said yesterday the firm offers non-collateral loans from P100,000 to P10 million to SMEs.

Uttamchandani pointed out that SMEs are crucial for the country's economic growth, job creation and innovation.

However, their lack of access to financing, due to high minimum loan amount and extensive documentation requirements, has often been cited as one of the constraints affecting their growth, he added.

"The SME market has so much potential because it remains unserved," the COO told a press conference in Cebu City.

Citing government data, Uttamchandani noted that the SME sector is responsible for employment of 70% of the country's workforce and 99.6% of all registered Philippine enterprises.

However, because of collateral requirements, revenue-driven structure of banks and high minimum loan amounts, only 20% of these SMEs are served by formal banking institutions.

The COO explained the company is more focused on a borrower's goal, cash flow, capacity and financial health in approving a loan.

Approved  loans

In its one-month operation in Cebu since it started in September this year, the financing company had already released six loans totaling to P6 million to its clients here.

And its potential loans to businesses in Cebu and the region are seen to go up amid the growth of business expansion here, Uttamchandani said.

EFI has catered to various industries such as wholesale and retail trade, manufacturing, construction, accommodation and food service, and administrative and other support services.

Last year 95% of SMEs EFI served are located in Luzon, majority of which are in Metro Manila, while the Visayas and Mindanao regions accounted for the remaining 5%.

After four years since it started in 2011 EFI had already released a total of 17,849 loans worth P15.02 billion to 3,233 clients. From then on, it has since served over 5,000 businesses across the country.

In 2014 the company recorded a total of 5,590 loan releases, covering 1,821 clients.

The company also generated total revenue of P641.4 million, up P5.5 million from the 2013 revenue of P635.9 million, according to its 2014 annual report. (FREEMAN)