Esquire Financing offers non collateral & Biz Loans to SMEs

Esquire Financing Inc. opens its first branch in Cebu City in its bid to boost presence and service-base in the SME market in the region. EFI President and Chief Operating Officer Navin Uttamchandani said recently that the firm offers non-collateral loans from Php100,000 to Php10 million to SMEs.

With 99.6% share of about one million registered businesses and employing 64.9% of the workforce, according to the Department of Trade and Industry, strengthening the competitiveness of the small and medium enterprises (SMEs) is critical to the Philippines’ inclusive economic growth. However, due to collateral requirements, revenue-driven structure of banks, and high minimum loan amounts, only 20% of these SMEs are served by formal financing institutions.

Esquire Financing Inc. (EFI) is a direct response to the need of the underserved SMEs for a trusted financing partner. EFI provides fast, hassle-free non-collateral business loans tailor made to each SME’s needs, goals, cash flows, capacity, and financial position.

Uttamchandani pointed out that SMEs are crucial for the country's economic growth, job creation and innovation. However, their lack of access to financing, due to high minimum loan amount and extensive documentation requirements, has often been cited as one of the constraints affecting their growth, he added.

Approved  loans

In its one-month operation in Cebu since it started in September this year, the financing company had already released six loans totaling to Php6 million to its clients here. And its potential loans to businesses in Cebu and the region are seen to go up amid the growth of business expansion here, Uttamchandani said.

EFI has catered to various industries such as wholesale and retail trade, manufacturing, construction, accommodation and food service, and administrative and other support services.

Last year 95% of SMEs EFI served are located in Luzon, majority of which are in Metro Manila, while the Visayas and Mindanao regions accounted for the remaining 5%.

After four years since it started in 2011 EFI had already released a total of 17,849 loans worth P15.02 billion to 3,233 clients. From then on, it has since served over 5,000 businesses across the country.

In 2014 the company recorded a total of 5,590 loan releases, covering 1,821 clients.

The company also generated total revenue of Php641.4 million, up Php5.5 million from the 2013 revenue of Php635.9 million, according to its 2014 annual report.