- A majority of MSMEs (67%) in the Philippines and the rest of world continue to rely on personal savings and debt from family and friend to start or grow their businesses;
- 917Ventures, the largest corporate venture builder in the Philippines, has introduced loan aggregator platform FundSpace to address this financing gap;
- FundSpace offers MSMEs an easy to use and accessible platform to apply for loans and credit lines ranging from as low as P5,000 to as high as P100 million.
Addressing the persistent challenge of fund sufficiency for MSMEs, especially in emerging markets, 917Ventures’s loan aggregator Fundspace is introducing a swift, user-friendly, and easily accessible digital solution to bridge the financing gap in the Philippines.
Recognizing the significant impact of micro, small, and medium enterprises (MSMEs), which contribute 40% to the country’s gross domestic product (GDP) and employ 63% of the local workforce according to the United Nations Development Programme, Fundspace aims to tackle the underfunding issue hindering the growth of these crucial businesses.
Martin Luchangco, Entrepreneur-in-Residence at 917Ventures, emphasized, “Despite their substantial contributions, many MSMEs continue to be underfunded. This hinders the growth of these businesses, and in turn may hinder the growth of the economy.”
FundSpace offers a straightforward application process, catering to enterprises of all sizes. The platform ensures easy access to funding, facilitating business growth and sustainability. By connecting borrowers with various lending partners and their diverse loan products through a mobile-friendly platform, FundSpace strives to empower MSMEs and local entrepreneurs in their financial journey.
Entrepreneurs can start their financing journey in four simple steps:
1. Visit the FundSpace website
2. Specify the loan amount
3. Submit necessary business documents (such as Barangay and Mayor’s Permits, DTI Permits, valid IDs, and the latest three months bank statements), and;
Wait for its dedicated account managers to get in touch.
- The platform has a quick 14-day loan approval timeline, a significant improvement over the typical 60-day timeline seen in traditional banks.
In collaboration with esteemed lending partners such as Alon Capital, iGlobal, Mt Fuji Lending, BPI Business Banking, First Circle, Zenith Capital, and Esquire, FundSpace offers a wide range of loans, starting from P5,000 and reaching upwards of P100 million.
Martin Luchangco emphasized the importance of providing flexible loan amounts to cater to the diverse needs of MSMEs, ranging from those in the initial stages to those aiming for aggressive business growth.
Since its inception, FundSpace has successfully facilitated loans across various industries, including retail, construction, food and beverage, services, and software. This highlights its pivotal role as a valuable partner to MSMEs, supporting them on their journey toward sustainable growth and success.
Recognizing the challenges faced by more than half of Filipino MSMEs (67%) in securing funding, as reported by the United Nations Development Program, FundSpace aims to address these obstacles. Many entrepreneurs resort to personal savings or loans from family and friends due to the tedious and document-heavy processes of traditional financial institutions, coupled with stringent collateral requirements and high-interest rates.
In response to these challenges, FundSpace was developed to simplify the borrowing process, offering inclusive access to businesses of all types.
Looking ahead, FundSpace plans to launch a credit scoring feature later in the year. This innovative feature aims to streamline the application process by reducing required documentation, facilitating quicker assessments for lenders, and delivering higher-quality leads for the platform.
Martin Luchangco expressed that “empowering MSMEs with easy financial solutions is both an investment in their growth and in fostering economic resilience.” FundSpace’s commitment to innovation not only enhances the user experience for borrowers but also strengthens the efficiency and effectiveness of the lending process for its network of financial partners.
To learn more about FundSpace, visit fundspace.ph.
