Is it benign neglect or conscious discrimination against a relatively small but fast-growing sector of the economy?
Whatever the case, a home-grown financial technology start-up is blazing the trail and shaming all and sundry by offloading a bundle of money to what may be called as the little League of business and industry.
The fin-tech start-up is Acudeen Technologist Inc. and the intended beneficiary of the massive emission of moolah is the medium, small, and micro-enterprises.
And these lucky MSMEs have a young aggressive, and visionary financial executive to thank for.
Singapore-based Filipino start-up Acudeen Technologies Pte Ltd. has earmarked more than P5 billion next year to provide the financing needs of small and medium enterprises.
Magellan Fetalino, Acudeen’s Founder and CEO, said the company has now financed more than P500 million worth of invoices for 1,000 SMEs in the Philippines this year.
Fetalino said Acudeen continues to grow since its inception in 2016 making financing accessible to SMEs in the Philippines through the use of technology.
Small and medium enterprises (SMEs) comprise 99.6 percent of all registered business in the Philippines and employ 70 percent of the workforce.
SMEs are major contributors to the country’s domestic output as measured by the gross domestic product (GDP).
However, more than 80 percent of SMEs in Southeast Asia including the Philippines lack access to credit that is needed in order to grow or sustain their businesses.
With the use of Acudeen’s online marketplace for receivables financing, business owners can now experience swift, secure and seamless financing all at the comfort of their home.
“SMEs anywhere in the world always have the biggest contribution to a country’s GDP, and yet this is the segment that is least supported by our financial institutions,” he emphasized.
Acudeen continues to gain global recognition as Factors Chain International welcomed Acudeen as its first ever member in the Philippines during the Southeast Asia Factoring and Receivables Finance Conference.
The ceremony held by the international representing body for factoring and supply chain financing with over 400 member companies in 90 countries was attended by 100 participants from banks, government, other financial institutions, and exporters from Vietnam, Indonesia, Singapore, Malaysia, India and the Philippines.
Gay Santos, Senior Financial Sector Specialist, at the International Finance Corp. (IFC), gave an update on the Personal Property Security Act (Republic Act No. 11057) which was just passed this year.
The law covering accounts receivables as means for lending will be a boon to factoring as it gives great certainty to assignment of receivables and established the right of assignment.
This is the first law of its kind in Philippines to help MSMEs have access to financing and will be a good example for other Asian countries to follow.
Behold God’s glory and seek His mercy.
Pause and pray, people.