The collaboration brings together PNB’s scale, financial strength, and institutional experience with DCFC’s specialized, SME-focused lending expertise.
Both parties said the facility is designed to help close long-standing funding gaps that continue to constrain the growth of many small businesses, particularly those operating outside major urban centers.
Boosting working capital
Under the agreement, as detailed in a press release, PNB will provide DCFC with additional funding capacity that the finance company will deploy to offer more flexible and accessible financing solutions to its expanding SME client base.
The facility, PNB said, will primarily support working capital requirements, allowing businesses to finance inventory, fulfill large orders, acquire equipment, and better manage cash flow.
The partnership underscores PNB’s sustained commitment to the SME sector, which accounts for more than 99 percent of registered businesses in the Philippines and is widely regarded as the backbone of the domestic economy.
Despite their economic importance, SMEs continue to receive a disproportionately small share of formal bank lending.
“Our agreement with PNB is a clear signal of Discovery Capital Finance Corp.’s commitment to financial inclusion for the underserved business community,” said DCFC president Diosdado Chua Salang Jr.
“By partnering with institutions like PNB, we can effectively amplify our reach beyond our branches, ensuring that crucial capital flows into regional economies where it is needed most.”
Banks and non-banks financial institutions
Industry observers said the loan facility is expected to improve access to financing for SMEs in provincial areas, where traditional bank credit can be more difficult to secure.
DCFC’s localized presence and sector-specific knowledge, combined with PNB’s funding support, are seen as key to extending credit to businesses with limited collateral or short credit histories.
The partnership also reflects a broader trend in the Philippine financial sector, where large banks increasingly collaborate with non-bank financial institutions (NBFIs) and finance companies to reach niche markets more efficiently.
Such arrangements allow banks to scale their impact while leveraging the agility and specialization of smaller lenders.
Inclusive financial ecosystem
For DCFC, the facility serves as a vote of confidence from one of the country’s largest and most established banks. The funding support is expected to help lower DCFC’s cost of funds, enabling it to offer more competitive rates and terms to SME borrowers.
Both institutions said the initiative is expected to contribute to broader economic benefits, including increased business activity, job creation, and stronger local tax bases.
The signing of the loan facility marks a step forward in building a more inclusive financial ecosystem for Filipino entrepreneurs and their communities. —Ed: Corrie S. Narisma
