The agreement provides Discovery Capital with additional funding capacity to expand its lending operations and deliver working capital solutions to businesses, particularly those in underserved and underbanked communities.
The company said the facility will support its efforts to address financing gaps that often prevent SMEs from growing, investing in equipment, and managing day-to-day operations.
Funding boost
Backed by UnionBank, one of the country's largest banking institutions, Discovery Capital plans to scale its operations nationwide and expand its physical presence beyond major urban centers.
The financing company said it intends to establish additional satellite offices across the Philippines to better serve entrepreneurs and business owners who have limited access to traditional banking services.
SMEs account for the vast majority of businesses in the Philippines and play a critical role in job creation and economic activity. However, many continue to face challenges in securing affordable and accessible financing.
Discovery Capital said the new credit line will allow it to provide more flexible and non-collateralized financing options to help businesses meet their funding requirements.
Growth strategy
The company attributed its growth to a combination of governance standards, risk management practices, and its expanding presence in provincial markets.
According to Discovery Capital, its lending model combines traditional banking channels with digital networks to facilitate faster capital deployment, particularly in rural and provincial areas.
The company also highlighted its localized operations, which it said enable closer engagement with clients and a better understanding of financing needs at the grassroots level.
Industry observers have noted that strong institutional partnerships are becoming increasingly important as financing companies seek to expand their reach and serve more businesses outside major economic centers.
Expansion plans
For Discovery Capital, the partnership represents a key milestone in its growth ambitions.
“Our ultimate goal is to become the definitive top-of-mind choice for any entrepreneur or business owner seeking financial support in the Philippines,” Discovery Capital president and chief executive officer Diosdado C. Salang Jr. said in a statement.
“When clients look for a reliable partner to sustain and scale their dreams, we want Discovery to be the very first name they think of,” he added.
The company said the collaboration with UnionBank is expected to support long-term business growth while contributing to broader financial inclusion efforts.
By increasing access to capital, Discovery Capital aims to help strengthen provincial economies and support the expansion of local enterprises nationwide. —Ed: Corrie S. Narisma
