Credit Surety Funds Benefits for Small Businesses

Micro, small and medium enterprises (MSMEs) can now hope to get a bank loan without the necessary presenting acceptable collateral. The very first provincial Credit Surety Fund was launched in Trece Martires City in Cavite. And this program will be replicated in other province like Aurora province and Bohol, and in Calabarzon and Mimaropa region.

Access to credit of small businesses such as market vendors, handicraft makers and backyard farmers, the true backbone of the economy that comprise 99% of enterprises in the country, is very limited due to lack of acceptable collateral that is usually required by banks. But with the Credit Surety Fund, banks will lend more comfortably to MSMEs.

The Credit Surety Fund aims to encourage more lendings to small businesses by facilitating bank’s collection from a fund in the event of borrower default. The CSF will ensure that in such eventuality the lending banks can draw from the surety fun within 14 calendar days after submission of needed documents.

Credit Surety Fund democratizes access to bank credit and helps level the playing field for micro, small and medium enterprises. I’m looking forward the CSF program succeeds and open a lot of windows for micro, small and medium enterprises.