Financial technology company First Circle opened up an additional P1.5 billion in funding for small and medium enterprises.
The financing product is a partnership between the Department of Trade and Industry and First Circle, according to co-founder and chief technology officer Tony Ennis.
“The product will be available to all Go Negosyo members nationwide as we also expand our services to cover the entire Philippines,” he said.
Loans are expected to incur 1.99 percent to 2.49 percent interest per month depending on the creditworthiness of the borrower, on top of the 1.99-percent processing fee.
“With the partnership of First Circle and DTI, we will be able to tap into the 900+ Go Negosyo Centers of DTI to help promote to SMEs the availability of First Circle loans,” said company vice president Benedict Carandang. Borrowers are given one to six months for loan repayment.
The fintech company is still in the process of being accredited as a wholesale lending partner of SB Corp.
First Circle co-founder and chief executive Patrick Lynch said the company thrived in the empowerment of business owners who were willing to expand their businesses.
“It is because of our mission alignment that the we have been selected by the Trade Department as their official partner. We can leverage the educational tools and other resources of the department and use our capabilities in distribution to reach more businesses than ever before,” Lynch said.
The company created a simple application process that allows SMEs to avail of the financial service that is fast, convenient and flexible.
First Circle grew its client base in just a span of two years and monitored more than 10,000 invoices.
The total value of application was estimated at P3.4 billion, showing the demand exceeded supply, according to the company.
