State-owned Philippine Guarantee Corp. (Philguarantee) has partnered with Discovery Capital Finance Corp. (DCFC) to widen credit access for small and medium enterprises (SMEs) across the country.
Under the agreement, Philguarantee will provide credit guarantees on loans issued by DCFC, sharing part of the credit risk. This support is expected to make it easier for DCFC to lend to smaller and growing businesses that often struggle to qualify for financing due to limited financial information.
DCFC president and CEO Diosdado C. Salang Jr. called the deal “transformational,” saying the guarantee helps protect the company from potential loan losses. “This significantly reduces our risk, which in turn allows us to lower our cost of funding and extend credit to a broader segment of the market,” he said.
The partnership aligns with Philguarantee’s mandate to support micro, small and medium enterprises and allows DCFC to direct more capital into the SME sector, considered the backbone of the Philippine economy.
DCFC said SMEs—especially those in provinces and underserved areas where the company has a strong presence—will benefit immediately. The guarantee is expected to encourage the lender to increase its loan volume to businesses it previously viewed as too risky, giving more entrepreneurs access to working capital and expansion financing.
Both organizations said the initiative supports national development goals by easing financing bottlenecks, helping create jobs, and stimulating economic activity across Luzon, Visayas and Mindanao.
Founded in 2020, DCFC has rapidly grown into one of the country’s leading financing companies, using technology to support more comprehensive credit assessments.
