A new credit registry for micro, small and medium enterprises (MSMEs) is underway to help small entrepreneurs secure financing from a broader pool of lenders.
Officials of the Department of Trade and Industry (DTI) and private credit bureau Advance.CBP inked a memorandum of agreement (MOA) which aims to allow the latter to establish a credit registry for businesses registered with DTI Negosyo Centers.
In a reply to e-mailed questions from the Philippine News Agency, Advance.CBP country manager Michelle Ann Chan said the MOA allows the private firm to get the information or entrepreneurs’ data needed for the registry through the Negosyo Centers.
“Advance.CBP already has the technology, framework and implementation plan in place to begin the program, which is designed to be simple and accessible for MSMEs,” she said.
Chan said the program’s first phase involves launching a secure digital platform where Negosyo Center staff will encode small business details.
The system will then integrate Credit Information Corporation (CIC) and alternative data to generate predictive credit scores, making MSMEs more visible to credit providers.
“Our goal is to help bridge the information gap that prevents many otherwise viable MSMEs from accessing affordable financing. By making MSMEs more visible, verifiable and credit-assessable, we aim to support the broader national agenda of empowering entrepreneurs, expanding economic opportunities and accelerating inclusive growth across the Philippines,” she said.
MSMEs account for 99.6 percent of business in the Philippines and employ over 60 percent of workers.
However, MSMEs contribute only around 40 percent to the country’s annual economic output. This has prompted a government push to help small businesses expand their operations and increase their contribution to the gross domestic product.
“Success will be measured not only by the number of businesses onboarded, but by the quality, completeness and usability of the information that can help MSMEs become more visible to lenders and other ecosystem participants,” she said.
“Given the Philippines’ millions of MSMEs and DTI’s nationwide reach, we see significant long-term potential for the registry to become an important piece of the country’s financial inclusion and enterprise development infrastructure.” (PNA)
