- A majority of MSMEs (67%) in the Philippines and the rest of the world continue to rely on personal savings and debt from family and friends to start or grow their businesses;
- 917Ventures, the largest corporate venture builder in the Philippines, has introduced loan aggregator platform FundSpace to address this financing gap;
- FundSpace offers MSMEs an easy-to-use and accessible platform to apply for loans and credit lines ranging from as low as P5,000 to as high as P100 million.
As fund sufficiency remains a major challenge for MSMEs, particularly in emerging markets, 917Ventures’s loan aggregator Fundspace is offering.
MSMEs and local entrepreneurs need 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 funding to ensure business growth and sustainability. It connects borrowers to 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 including 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 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 in 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 the cost of business for these enterprises.
FundSpace was developed to simplify the borrowing process in response to these challenges.
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 enhances the user experience for borrowers and strengthens the lending process's efficiency and effectiveness for its valued network of financial partners.
"Empowering MSMEs with easy financial solutions is an investment in their growth and fostering economic resilience. By removing financial barriers for these enterprises, we are contributing to their success and the sustainable development of communities and the Philippine economy,” Luchangco added.
Learn more about FundSpace by visiting fundspace.ph.
