PhilGuarantee and Visa collaboration for MSMEs
Visa, a global leader in digital payments, has signed an agreement with the Philippine Guarantee Corporation (PhilGuarantee) to support the growth of micro, small, and medium enterprises (MSMEs). The partnership aims to improve credit access, strengthen financial inclusion, and equip MSMEs with digital and financial skills.
The collaboration will focus on developing credit guarantee schemes that allow MSMEs to secure loans through partner banks and lending institutions. It will also introduce programs under Visa Government Solutions, including digital disbursement, payment acceptance, and financial education. PhilGuarantee, under the Department of Finance, is tasked with ensuring efficient guarantee systems that empower critical economic sectors.
MSMEs are the backbone of the Philippine economy, making up over 1.2 million businesses and employing more than 66 percent of the workforce. Despite this, they receive less than 10 percent of corporate loans, leaving many without access to much-needed funding. A Visa study showed that 44 percent of MSMEs face cash flow problems, while more than half admit their reserves can only last for less than six months.
To address these challenges, Visa’s global initiatives are already in motion. The Visa Foundation’s $100-million small business accelerator supports digital inclusion, job creation, and SME financing across Asia Pacific. In addition, Visa’s Practical Business Skills program helps entrepreneurs manage cash flow, adopt digital payments, and strengthen business planning.
“Partnering with PhilGuarantee is a step toward enabling more Filipino MSMEs to thrive,” said Jeffrey Navarro, Visa Country Manager for the Philippines. “Our goal is to support the government’s financial inclusion agenda and ensure small businesses have access to products and solutions that fit their needs.”
This agreement signals a stronger commitment to empowering MSMEs, bridging financing gaps, and driving long-term economic growth.
