First Circle targets SMEs for financing

Financing firm First Circle is targeting to more than double its small and medium enterprises (SME) client portfolio by 2017 through the use of technology that provides easy access to collateral-free loans.

First Circle President and Chief Executive Officer Patrick Lynch said the firm currently had 200 SME clients, and targeted to reach over 400 next year.

Lynch said clients included those in small manufacturing, wholesale and distribution businesses, engaged in selling of electronics or textile goods online, and exporting coconut products around the world.

“Our rates are higher than bank rates. Our products are much more flexible. Overall, we are looking to fund every business,” he said.

Lynch said companies applying for loans should be located within Metro Manila, operating for at least three years, and must have clear and verifiable information about its trading history.

“Our goal is to reach a lot of SMEs in Metro Manila; then plan to expand,” he said.

Loan amount ranges from P100,000 to P5 million, he added.

“We realized that what we needed to do in order to empower small businesses was to reduce the amount of time it takes to open an account with us and also reduce the time it takes for them to avail of finance,” he noted.

What takes 14 hours an average to complete for manual applications to traditional institutions takes only two to three minutes with First Circle’s propriety-built secured system.

“We’re using online distribution to get access to the whole Philippine market. Small businesses have huge opportunity, but they’re not able to take advantage of these opportunities because of the lack of financial resources,” Lynch said.

He also bared the company’s plan to expand overseas.

“Next stop is most likely Indonesia, and then we think Vietnam is also a very interesting (market),” he added.