Asialink Finance Corp, a Philippine-based lender to small and medium enterprises (SMEs), has secured P4 billion in investment from Malaysian private equity firm Creador.
The investment gives Creador, which is in the market for its sixth flagship fund, an 18% stake in Asialink and a seat on its board of directors, the Malaysian investor said in a statement.
Asialink, established in June 1997, will use the fresh investment to expand its lending capacity and support the growth of SMEs, the backbone of the Philippine economy and a major generator of jobs in the country.
The financing company employs over 700 personnel and thousands of independent loan consultants. It has over 80 branches nationwide that serve the financing needs of businesses and individuals.
Asialink aims to provide “accessible, fast, and convenient” loans with competitive interest rates and fast processing time.
The fresh investment adds to the company’s coffers, which has previously raised funds from various banks to reach out to more customers across the country.
In 2022, Asialink raised P1.8 billion from banks to fund its “sangla” business, with cars and trucks as collateral.
Among the lenders that provided Asialink P1.8 billion were the Development Bank of the Philippines, Philippine Business Bank, Small Business Corporation, Philippine Veterans Bank, Cebuana Lhuillier Bank, CTBC Bank, EastWest Bank, UnionBank, Robinsons Bank, and China Bank.
For the latest funding, Creador said beyond the financial aspect of the investment, it will also help improve Asialink’s operational efficiency, introduce international banking partners, and support business innovation and automation.
“With our investment, hard working business owners will gain access to the financial system as the company expands geographically, launches new products and leverages data to digitalise its services,” said Omar Mahmoud, managing director and country head of the Philippines at Creador Private Equity.
Creador invests in countries such as Indonesia, Singapore, Vietnam, and the Philippines, besides its home market Malaysia.
MSMEs account for more than 99% of business establishments and 63% of the workforce in the Philippines, contributing 40% to the country’s gross domestic product.
Earlier, ProCredit, another lender to the country’s SME sector, announced raising about P299 million in its pre-Seed funding round.
The round was led by early-stage investor Integra Partners and participated by a host of investors, including the Menardo Jimenez Family Office, M Venture Partners, Cento Ventures, Gobi Partners, through the Gobi-Core Philippine Fund, and several local angels.