Covid-19 crisis to give rise to need based products in insurance industry

What we are witnessing is a refreshing and much-needed Consumerisation of Insurance where insurance products will be bought (versus being sold) on “use as needed” basis at key “moments of truth” and serviced remotely and seamlessly in the growing digital, virtual and remote e-commerce ecosystemin the post-Covid economy.

Read the original story here: Covid-19 crisis to give rise to need based products in insurance industry

The Covid 19 pandemic is exposing some of the structural opportunities in how insurance has been productised, priced, sold, and serviced to meet our personal and commercial protection needs, and galvanising the changes that have been long overdue. The risks associated with the pandemic are challenging the fundamental pillars of the insurance industry, and giving rise to new and unique need-based products that are here to stay.

Insurance has traditionally implied managing risks across large homogenous populations through products that have predominantly been sold through intermediaries and provided protection against a static set of risks regardless of individual exposure and needs over time. Claims have been settled through case by case assessment of damages and associated indemnity. In addition to resulting in adverse selection for some products (low risk consumers subsidising higher risk consumers within a population), these products have failed to address individual risk exposures and coverage needs when most needed by us. We pay for home insurance for a fixed policy period regardless of whether we occupy the property during that time or not. We pay for car insurance based on risk factors such as the routes we drive on and average mileage regardless of whether we drive the car during the policy period or not.

Many small businesses have gone out of business for lack of business interruption coverage in their standard SME policies during the pandemic. Similarly, traditional life and health insurance products are not only complex and difficult to understand by average consumers, they have failed to meet short-term emergency needs arising from hospitalisation, loss of employment, quarantine expenses, disability, and loss of a loved one, risks that are pervasive during pandemics such as Covid 19. GIG jobs that enable us to work on demand on part-time basis will continue to grow in the post-Covid economy and require on-demand insurance coverage.

Read the original story here: Covid-19 crisis to give rise to need based products in insurance industry

So, what does this mean for new need-based insurance products that are on the horizon?

First, we will see more pre-underwritten, fixed price and fixed benefit simple insurance products such as hospital cash, unemployment, and short-term disability benefits that are sold and serviced (claims settlement) directly through smart devices with the click of a button in real-time. Innovative technology companies such as Dubai-based Democrance are revolutionising how insurance companies can use plug-and-play platforms to deliver these products as well as services like telemedicine directly, digitally, and seamlessly to their customers.

Second, we will see insurance products that enable the growing need for mobility and social distancing (e.g., e-bikes, shared economy and GIG work) that address risks associated with the pandemic. Companies such as London-based Laka are providing innovative insurance policies for coverages needed by bikers in the UK and other European countries that are experiencing a massive growth in mobility via bikes.

Third, we will see new and innovative policies to meet short-term needs of micro-businesses and SMEs, the life and blood of most emerging economies. MariaHealth, a Philippines-based health insurance distributor is packaging and bundling short-term need-based health insurance coverages for individuals and SMEs, the first of its kind in SE Asia. VESL has launched a new per-invoice based trade credit insurance product to help SMEs in securing credit from financial lenders and banks.

Read the original story here: Covid-19 crisis to give rise to need based products in insurance industry

Fourth, we will see “on-demand, pay as you use” insurance products. PolicyPal has collaborated with FinTech firms Revolut and StashAway to launch a new programme called ‘Medical Energizer’ which offers insurance, financial and ride benefits to frontline medical workers to support their wellbeing during the COVID-19 crisis. Zego, which sells a range of cover to drivers and riders in the gig economy, is offering 14 days free insurance to any of its customers who have to self-isolate. Those affected can claim up to two weeks free insurance when they renew their policy.

Fifth, new products will focus more on helping us in preventing and mitigating adverse events, in addition to providing standard protection. Technology start-ups like Bangalore-based Gypsee are working with insurance companies to pilot innovative ways of measuring driving behaviour and vehicle health to help prevent auto accidents. We will also see more comprehensive digital health offerings, including remote diagnostics, tracing, monitoring, real time advice (telemedicine), pharmaceutical support, early response communication and international cover.

Finally, we will continue to see insurance products with remote claims visualisation, assessment, and on-the-spot settlement for auto, property and small commercial claims enabled by innovative claims technology providers such as Munich-based MotionsCloud.

What we are witnessing is a refreshing and much-needed Consumerisation of Insurance where insurance products will be bought (versus being sold) on “use as needed” basis at key “moments of truth” and serviced remotely and seamlessly in the growing digital, virtual and remote e-commerce ecosystemin the post-Covid economy.

Read the original story here: Covid-19 crisis to give rise to need based products in insurance industry

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The Covid-19 Construction Crunch: Are we prepared for what’s next?

Construction companies have reported the negative impact of the Covid 19 pandemic in a survey conducted on members of The Associated General Contractors (AGC) of America.

Of the 909 respondents in the survey, 28% stated that they have been asked to halt or delay working on projects that are currently active or supposed to start in the next 30 days. For projects which are supposed to start more than 30 days from the survey, 11% of respondents have been told that these will be delayed or halted. Major reasons cited for project delays or disruptions were a shortage of workers, including from subcontractors, as well as a shortage or materials and equipment. In fact, 22% of respondents were informed by their suppliers of delays or cancellations in deliveries.

While the survey was conducted in the US, Philippine contractors are most likely in a very similar plight. This is not surprising, given the contraction comes from both the demand and supply side. From the supply side, construction companies could face shortage both in workers, materials, and equipment as the quarantine creates logistical challenges for people and goods. Likewise, demand for private construction could constrict alongside the drop in tourism and commercial activities.

The next considerations then for those in the industry have to do with how well protected they are against force majeure. What happens when they cannot fulfill their contracts on time? How about if they are leveraged or have existing loans? Will companies who supply to contractors also be affected? Lastly, how could they protect themselves?


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COVID-19 and Its Unsung Domino Effect to SMEs

by Maureen Ledesma

We have been listening to news and social media sentiments about the problems this new coronavirus has brought our lives. The supply chain has definitely not been spared. Although the headlines we may see are those of publicly listed companies in a stock market bloodbath and laying off employees etc, the domino effect to SMEs have been unsung and the effects are quite alarming and we may only be in the early stages. 

In our info graphic below, we take a closer look at the Airlines industry whose stocks tumbled the worst as the corona virus spreads. China Airlines posted record breaking losses of USD3B incurred for a single month in February 2020. Locally, our Philippine Airlines (PSE:PAL) stocks dropped to P5.00 per share, its lowest since 2006. United Airlines warns of worker layoffs without government bailout.   

How about the supply chain? What do we hear about them? Is ABC Plane Food Inc, or XYZ Airplane Fuel Inc still receiving purchase orders from China Airlines, Philippine airlines, United Airlines, etc given that a big number of flights and routes have been cancelled?

SMEs not only see less purchase orders from their biggest clients. 

– Worse, they are eventually made ‘creditors of last resort’. What do we mean by that? It is when large customers (like the airlines for example) become momentarily insolvent and ASK FOR DELAYED PAYMENTS. As an SME with zero negotiating power against these large clients, there’s nothing they can do. Unlike the airlines, SMEs don’t get bailed out by governments. And often, SMEs cannot dictate to get paid right away even when their customers are bailed out of insolvency. 

What other supply chains and industries do you think are hit badly by the new corona virus and the resulting government lock downs? Keen to hear your thoughts. 

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3 Insurance Products We Need to Know as the Corona Virus Spreads

by Maureen Ledesma

The corona virus has put a strain in the global economy in the past 2 months. Offices have postponed meetings and events, governments have considered lock downs, tissue paper is running out!.

But what does this mean for you?

If you’re in the tissue paper and disinfectant industry, you are doing more than well. But if you’re in the events, travel and tourism industry, you are also down with the “slow-to-no-business” virus.

Aside from travel insurance that can refund your cancelled flight, what can other types of insurance do (have done) for you?

  •  Events and travel companies should have purchased comprehensive event insurance to refund disgruntled guests. This is to retain customer loyalty and brand reputation.
  • For businesses trading with countries badly hit by the virus, say for example you’re a local producer of plastic supplies for machines in Italy, your #1 concern is if that company in Italy can still pay you on time, or if they can pay at all. In this case, trade credit insurance will be your best friend, to help you confidently continue business with foreign counterparts. If the Italian company can’t pay or went bankrupt, insurers got your back.
  • If you’re a government, you can subscribe to the World Bank’s Pandemic Emergency Financing Facility (insurance linked securities) so it can provide your country or region with the needed liquidity and capital to help you in your response and recovery.

Do you feel bad for learning about these just now? It’s okay. It’s better late than never.  You’ll never know when epidemics like this hit, (And we’re sure this COVID-19 isn’t the last one) so having due protection is important. 

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Letters of Credit versus Trade Credit Insurance

Both Letter of Credit and Trade Credit Insurance are tools used by exporters to lessen the risk of selling to foreign buyers. But how are they different? Here is an infographic comparing Letter of Credit and Trade Credit Insurance.

by Jessica Manipon

If you are in the exporting industry, particularly selling goods to other businesses abroad, you might have come across an instrument called “Letter of Credit”. In the Philippines, this is one of the most common ways an exporter secures payment from their foreign buyers.

We have discussed in many ways how trade credit insurance can protect a business’ receivables from non-payment of their buyers, but comparing Letter of Credit (LC) and Trade Credit Insurance (TCI) can be confusing. Here is a visual guide showing the differences of TCI and LC.

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5 Best Habits of Competitive Businesses to Manage Credit

From timely payment due date reminders to trade credit insurance, here are the top five credit management tools for competitive business owners in the Philippines.

by Randolf Santos

An international study of 1,500 business owners revealed that most companies are slowly deviating away from Net 30 payments. Some of them have required one-week payment terms to reduce the chances of default, but one-week payment terms can be too short for some customers and can make you lose the client. Here are five credit management tools that business owners in the Philippines can use and not worry about straining their relationships with clients:

Automate Payment Reminders

An invoice with a three- or four-week payment due date becomes settled within a month, according to the study. An automated system for polite payment reminders should be helpful, but contemplate carefully about the frequency of reminders. You don’t want to appear pushy. Strike a balance by sending a reminder a few days before the payment deadline. Be ready to call the client if the invoice stays unsettled after a week from the due date.

Offer More Payment Options

Multiple channels make it more convenient for clients to settle outstanding invoices, which then require you to offer more payment options. Cash arguably remains the best payment method for business owners. Some of your clients, however, may refuse to carry large amounts of money. You don’t necessarily need to start accepting credit cards, which can affect your profit margin anyway.

An alternative involves opening an account from a bank that has several branches nearby your clients’ offices. You can also include cheque pick-up service, bank transfer and online payment options. Be sure to list all the possible payment methods in the invoice.

Update Receivables Aging Summaries

Competitive businesses, particularly in the import and export, manufacturing and retail sectors, use accounts receivable aging summaries. This document simply records each unpaid invoice and unused credit memo per client. It’s a nifty tool to track overdue payments but only if you regularly update it.

The ideal practice for updating receivables aging summaries should occur after payment has been made, although monthly updates to the report are acceptable too. The overdue ratio, which is the overdue amount divided by the total amount of receivables, should be between 0% and 5%.

Set a Limit for Buyers

Business owners should ask for their clients’ audited financial statements whenever possible. You can determine a credit limit based on the status of their cash flow, hence minimizing the risk of default due to delinquent or unpaid invoices. Late payment fees are possible as well, but you should explicitly inform buyers about additional charges in your invoice. A signed agreement before providing services or supplying products remains a good precaution.

Get Trade Credit Insurance Coverage

Insurance may be the best thing to cover your losses from unpaid invoices. Never discuss the terms of your policy to your buyers, whether or not they are curious about acquiring insurance for their own business. How long should you wait before filing a claim? Depending on your insurance policy, it can range from thirty to sixty days of non-payment after the due date seems an acceptable period to list the invoice as a loss.

Remember that you should have exercised every legally possible way to collect payment before contacting your insurer. Register on Vesl’s platform to know more about how business owners find the right insurance provider for them.


Unpaid invoices will continue to be a part of doing business with buyers, but this reality shouldn’t stop you from reducing your risk exposure. Credit checks on potential clients can complement these five management tools to avoid dealing with delinquent customers. Contact us today to find out more about our platform.

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Top 4 High-Profile Corporate Insolvencies in the PH

There’s an unnecessary sense of confidence that big companies are unlikely to become insolvent. Historical accounts serve as the best examples. Here are four of the high-profile corporate insolvencies in the Philippines.

by Randolf Santos

Corporate insolvencies still elicit discomfort among Filipino businessmen, especially for those who suffered significant losses from their investments. An insolvent business simply means that investors somehow feel that it’s their fault for being unprepared, and nobody likes to admit that they failed to foresee the unexpected.

Business owners should acknowledge that while insolvencies remain taboo in the corporate world, it can happen to any kind of company. There’s an unnecessary sense of confidence that big companies are unlikely to become insolvent. Historical accounts serve as the best examples. Here are four of the high-profile corporate insolvencies in the country:

ASB Group of Companies

The group of energy and petrochemical companies filed a petition for rehabilitation with the Securities and Exchange Commission (SEC) in May 2000. The SEC Hearing Panel granted a 60-day suspension of payments shortly after ASB Group filed the petition, due to the inability of paying their obligations within one year. This allowed the company to become technically insolvent and qualified for rehabilitation based on SEC rules.

ASB Group had P5.38 billion of assets at the end of 1999. They owed approximately P8 billion to five major banks and 700 unsecured creditors comprising contractors, individuals and suppliers in the Philippines. The SEC approved the company’s rehabilitation plan in 2001. Part of its plans to reduce debt involves the sale of their ongoing projects, payment in kind transactions and real estate divestments.

Uniwide Group

Uniwide became a household name in the late 1980s until the 1990s with their competitive prices for consumer goods. Sari-sari store owners flocked to their shopping malls for this reason. In fact, the company even had to curb foot traffic at their establishments during the peak shopping season in 1988.

The company’s troubles apparently began in 1998 with a poorly managed rehabilitation plan that ultimately led to liquidation several years later. The SEC already described the company as insolvent since 2003. Cash flow seemed to be the initial problem of Uniwide during the late 90s, as suppliers had decided to stop transactions with the company because of non-payment for previously delivered goods.

The situation became worse when creditors began to chase after the retailer. By 2013, the SEC issued a liquidation order after Uniwide’s liabilities exceeded its assets. It also didn’t help that the group already lost its market share to emerging competitors like SM. A court order in 2017 for liquidating Uniwide’s assets seemed like the proverbial nail in the coffin.

Victorias Milling

The company is the biggest sugar manufacturer in the Philippines, but the Asian financial crisis in the late 90s proved to be a bigger force. Victorias Milling sought debt relief in the midst of bankruptcy in 1995. Its dire financial situation can be attributed to the cheaply priced imported sugar, unmaximized production capacity, debt for expansion and repairs.

By 2013, the company bounced back after establishing a creditor-driven program to settle P4.4 billion of restructured debt and redeem issued convertible bonds. Victorias Milling agreed to a 10-year debt settlement in December 2018 to avoid further lawsuits from creditors, who were particularly after the company for roughly P1.2 billion of outstanding loan balances.

Hanjin Heavy Industries Corp-Philippines

Hanjin’s troubles started in 2009 when it lost US$1.1 billion from the global financial crisis, which also incurred US$15 billion of losses to the container shipping industry. In 2010, the Eurozone crisis affected the South Korean company’s trading activity between Asia and Europe. The regional business accounted for almost a quarter of its revenue in the same year. By April 2016, the Korea Development Bank took management control of Hanjin that signaled the severity of the company’s problems.

The embattled shipping company filed for receivership in August 2016 in South Korea, but its impact reached the Philippines due to five local banks that collectively lent US$412 million to the company. The company’s suppliers, however, filed for P48 billion (around US$923 million) of claims in February 2019.


Banks represent the major creditors of these companies that are insolvent or once filed for bankruptcy. If they struggle to collect payments, then it’s hard to imagine the plight of individual creditors and smaller businesses from recovering their losses due to unpaid invoices.

We emphasized the importance of credit management tools in another article, including trade credit insurance. It protects a company’s receivables from non-payment caused by insolvencies or bankruptcies. Vesl is an online platform that gives access to “pay per invoice” trade credit insurance for businesses. 


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US-China Trade War: Why PH Has Just as Much to Gain and Lose

An Asian Development Bank statistician believes that the trade war between China and the U.S. will be a boon for manufacturing companies in the Philippines.

by Randolf Santos

Manufacturing companies in the Philippines may gain more business because of the current trade war between China and the U.S., according to an Asian Development Bank (ADB) statistician.

Beijing and Washington may have held talks as of December 2019 to find common ground on the conflict, despite billions of tariffs already imposed on certain goods from both countries. The U.S. so far implemented US$550 billion of tariffs on Chinese goods, while China’s tariffs covered US$185 billion of U.S. imports.

How PH Manufacturers Will Benefit

ADB statistician Mahinthan Joseph Mariasingham predicted a higher manufacturing activity in the Philippines by up to 0.7%. Agriculture, automobile and technology trade comprise some of the hardest-hit sectors by the trade war.  Electronics manufacturers might acquire new business from companies in the Asia-Pacific region, as they don’t want to get caught in the middle of the trade war. Japanese companies like Kyocera, Nintendo and Sharp have decided to exit China and move some of their manufacturing operations into Vietnam.

The Trade War’s Beginning

The trade war between China and the U.S. seemingly began in July 2018 when the first round of tariffs affected 818 Chinese goods. U.S. President Donald Trump ordered a 25% tariff on US$34 billion of products at that time. Chinese President Xi Jinping responded with their own tariffs starting with an estimated US$50 billion of U.S. goods in the same year.

China and US Interests

Trump has been vocal about his plans of imposing tariffs since he was still running for the White House. According to him, the U.S. has been at a disadvantage in international trade stemming from China’s unfair trade practices. China has claimed that Washington only wants to gain the upper hand by intruding on the Asian country’s economic and industrial sovereignty.

The two superpowers have deeply intertwined economies with the exchange of goods from consumer goods and electronics to construction materials. In 2018, the U.S. imported approximately US$539.5 billion of Chinese goods. U.S. exports to China only reached US$120.34 billion in the same year. The U.S. may have more to lose from the dispute, but experts believe that there are no clear winners from the ongoing trade war.

Why Everyone Loses

The tariffs can affect demand for different products made in China. The components for manufacturing those products are imported from other countries. If enterprises and consumers buy fewer products to avoid paying a higher price, then the weaker demand will create a ripple effect in international markets. Suppliers and traders need to be more agile and clever in navigating these changes.


Manufacturing companies in the Philippines shouldn’t be too happy about the trade war, even if it seems that some multinational companies want to shift their production from China or the U.S. into the country. The long-term effects and implications of this trade war are clear: manufacturers, traders, and other suppliers in the industry need to be insured against the impact of the ongoing trade war. Contact us today to find out how you can protect your company’s business.


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As E-commerce Disrupts PH Retail Industry, Suppliers Should Prepare for the Inevitable

Suppliers of traditional retailers in the Philippines should rethink their fallback strategies against client bankruptcies, amid the constantly evolving global e-commerce market.

by Randolf Santos

Online shopping continues to disrupt the brick-and-mortar retail business worldwide, and it already has found its way into Philippine shores.

The e-commerce market in the country will generate more than US$1.4 billion in revenue by 2023 from US$743 million in 2017, based on Statista’s forecast for the industry. The report showed that revenue growth will streak upward in the next four years, hence slowly threatening the stability of business for traditional retailers.

What Contributes to Online Retail’s Growth?

There’s no doubt that Filipinos still love to shop at malls despite the advent of e-commerce websites such as Lazada, Shopee and Zalora. However, the convenience of buying consumer goods without ever having to leave home seems to be the main selling point of online retail. On a technical aspect, the so-called Industry 4.0 will propel growth for the country’s e-commerce market.

The fourth industrial revolution refers to disruptive trends and technologies that also include the Internet of Things and cybersecurity. The Association of Southeast Asian Nations (ASEAN) has begun to review Industry 4.0’s potential impact on the economies of ASEAN countries. For instance, the Regional Comprehensive Economic Partnership identifies e-commerce as an integral part of preparations for the next industrial revolution.

E-commerce Brought Down Retail Titans

Forever 21 Inc and Toys ‘R’ Us comprise some of the big-name global brands that filed for bankruptcies since 2017. Consumer preferences that swung in favor of online retail predominantly caused the companies’ downfall. The famous toy retailer nearly shut down all U.S. stores, while the fashion brand plans to close almost 180 stores in the country. What does this imply for Filipino retailers?

Mixed-use real estate projects that include shopping malls may still be plenty, but will foot traffic remain sustainable over the long term? In the case of Forever 21, the company’s operations in the Philippines will continue because of its business relations with SM Retail Inc. Other traditional retailers don’t have such luxury of partnering with a retail giant. If an established brand succumbs to the competition from e-commerce, then the likelihood of going bankrupt increases for small- or medium-size retailers.

Popular Market Segments for Online Retail

Consumer electronics and media will account for the biggest share of revenue in the e-commerce industry at almost US$258 million in 2019, according to Statista’s analysis. Revenue from fashion sales will amount to nearly US$227 million in the same year. These two segments will be the top two market niches for online retail through 2023, when both submarkets will contribute more than US$650 million in e-commerce revenue.

Suppliers for traditional retailers of electronics and fashion items may have noticed weaker business this year. Trade credit insurance prevents you from second-guessing the outcome of retail trends, even when your company continues to enjoy a steady flow of orders. What would you do if your biggest client fails to pay on time?


It’s never too early to consider how your business can cope with a growing online retail market in the Philippines. Insurance has now become more necessary than ever for suppliers to protect their businesses from the most at-risk customers. VESL connects you with lenders and reputable insurers who can protect and identify the vulnerability of your end-buyers and clients. Register now for free and discover how our pay-per-invoice deals have helped different companies to recover up to 90% of business losses.


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What Every Business Owner Must Know About SBC’s P3 Program

Here are five key takeaways about the SBC’s P3 program that should encourage micro, small and medium enterprises to be flexible when planning to raise capital through debt financing.

by Randolf Santos

Micro, small and medium enterprises (MSME) in the Philippines often struggle to raise capital through debt financing instruments. How many times did banks reject your loan application?

While some entrepreneurs want to borrow money from banks because of the low interest, several roadblocks await them once they submit a loan application. The difficulty of gaining approval for a bank-financed loan forces many business owners to choose the infamous “5-6 lending” scheme. The Small Business Corporation (SBC) has recognized this trend, which led them to launch the Pondo sa Pagbabago at Pag-asenso (P3) program in 2017. However, MSMEs should know that the initiative may not be for every business owner.

The Program Has Certain Restrictions

The national government formed SBC to support the growth of MSMEs through debt allocation. However, you won’t be eligible for financing assistance if your company’s asset size exceeds Php3 million. New MSME owners should also engage in business for at least one year before planning to borrow money.

Logistics serves as another impediment for some MSME owners. SBC’s Gabriel Ebanen advised that the businesses of loan applicants should be located within an hour of public transportation from an SBC office. This becomes particularly troublesome for MSME owners in regional areas.

You May Need Additional Sources of Debt Financing

MSMEs can borrow between Php5,000 and Php200,000 without collateral based on their size and financial capacity for repayments. Companies with at least one employee can borrow up to Php200,000. In other words, the P3 program won’t be the answer to your big-ticket acquisition or expansion plans.

If you prefer an alternative to bank financing, then VESL can help you with finding the right creditors from its network of lenders. Businesses can borrow up as high as Php30,000,000, depending on your loan history and your matched lender’s underwriting. Our platform has provided clients with access to finance and insurance products that used to be exclusive to large companies.

You Can Get the Same Interest Rate From Other Sources

SBC imposes an interest rate not higher than 2.5% every month for P3 loans. The monthly cap, which includes service fees, is the effective interest rate based on the principal amount’s diminishing balance. By contrast, 5-6 lenders charge at least 20% per month! The actual interest can be even higher because of the frequency of payment collection either on a daily or weekly schedule.

If you apply for a collateralized MSME loan with banks, the interest rates can range from 6.5% to 8% depending on your chosen tenor. Alternatively, when you sign up with VESL, the rates from matching lenders can be as low as SBC’s monthly cap. Registration is also free!

New Debt Means More Risk

Debt financing can ensure that your business passes through the gestation stage (usually three to five years), but it also means a higher risk for your financial profile. Business owners should start reviewing their clients and end-buyers’ probability of default to protect their bad debt reserves, which shouldn’t be used too early in a startup company’s development phase.

VESL can not only give you access to the right lender, but also to the right trade credit insurer to guard your receivables against delinquency. Trade credit insurance helps MSME owners to take care of their creditworthiness. Don’t let delinquent or delayed invoices ruin your relationship with lenders, unless you don’t mind borrowing money from unscrupulous 5-6 lenders.

The Program Needs More Certainty

Department of Trade and Industry Secretary Ramon Lopez suggested the enactment of a law to stabilize the P3 program. Lawmakers earmark a specific amount for the P3 program from the national budget every year, but Lopez believes that regulating the SBC project will ensure that it can last indefinitely.

As of July 2019, more than 89,000 MSMEs in the country have reaped the benefits of the P3 program. In 2018, the SBC released a total of Php3 billion in debt financing assistance for the sector.


SBC’s P3 program has supported thousands of MSMEs in just two years. Unfortunately, though, the initiative doesn’t suit every business owner. Financing technology companies in the Philippines have stepped in to bridge the financing gap, in which VESL has taken the lead since 2017. Contact us now to learn more about our services. Why not try today? Registration is free, and we offer a pay-per-invoice arrangement for new and old clients.


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