ASIALINK Finance Corp. has partnered with CIBI Information Inc. to assess the creditworthiness of small and medium enterprises (SMEs).
“We are on an expansion mode, and we need to be guided with credit scores to manage our risks in lending to these companies that banks do not lend to,” Asialink Chairman Ruben Lugtu said.
According to Asialink, it lends approximately P1.3 billion each month to SMEs.
In 2022, it experienced a 44-percent increase in total revenues, reaching P3.096 billion compared to P2.15 billion the previous year. The company’s asset value also rose by 39 percent to P11.369 billion.
To fund its lending activities to the unbanked sector, Asialink secured loans from banks and the capital market. The approval process for loans, often involving common collateral such as motor vehicles, takes just one day for established and returning clients.
Earlier this year, the company secured P2 billion in corporate notes from SB Capital Investment Corp. and RCBC Capital, serving as joint lead arranger and manager.
Moreover, Asialink Finance Corp. borrowed P1 billion from Yuanta Savings Bank and Small Business Corp.
Lugtu mentioned that their repayment performance surpasses that of banks due to the optimization of their business model. He then pointed out that they are adept at working with borrowers who are creditworthy but struggle to meet the more stringent lending criteria imposed by traditional banks.
“As our CIBI partnership unfolds, clients of Asialink can look forward to more accurate and transparent inclusive credit scoring solutions,” he said.