MSMEs Can Gain More Capital Using Crowdfunding Portals According to SEC
According to the Securities and Exchange Commission (SEC), during a Davao City roadshow on February 15, micro, small, and medium enterprises (MSMEs) can receive access to additional capital through crowdfunding portals.
SEC Chair Emilio Aquino discussed at the event set in the Pinnacle Hotel that crowdfunding platforms have easy requirements despite the measures implementing ensured capital flow and return of investments.
Aquino stated, “There are willing lenders (to provide funding to MSMEs),” indicating that these portals will assist borrowers in raising funds that they need to grow their small businesses.
Aquino added that using a crowdsourcing portal is a beneficial way to utilize technology. He also pointed out that the SEC will heavily regulate these platforms to ensure the legitimacy of borrowers and lenders and restrict scammers.
Aside from Aquino, the Philippine Chamber of Commerce and Industry area vice president for Mindanao Arturo Milan added that these portals are welcome options for the business sector looking for new methods of raising capital, especially MSMEs.
Milan said, “Our MSMEs have long been looking for access to funding. We hope that they can benefit from this new one.”
In addition, SEC Markets and Securities Regulation Department Director Vicente Graciano P. Felizmenio Jr. added that crowdfunding entities focus on relevant data they need so they can decide if funding seekers need capital to grow their businesses.
Felizmenio noted, “Even if you already raise the capital (you need to continue to provide information to the portal) until such time that your business matures.”
Furthermore, Investree Philippines relationship manager Maria Cecilia Rada discussed that they would handle supply chain financing and have non-collateralized loans.
Borrowers who want to have funds need to upload documents, such as sales voices and purchase orders, that show the potential growth of their enterprise. Once the loan application has been approved, an auction with investors will be held.