Philippine National Bank (PNB) has entered into a strategic partnership with Discovery Capital Finance Corporation (DCFC) to scale up financing access for micro, small, and medium enterprises (MSMEs) across the Philippines — addressing one of the sector’s most persistent challenges: access to working capital.
The partnership was formalized through the signing of a Loan Facility Agreement, which will provide DCFC with additional funding capacity to extend more flexible and accessible loans to its growing base of MSME clients, particularly those operating outside major urban centers.
For many small businesses, limited collateral, short credit histories, and uneven cash flow have long restricted access to traditional bank financing. The PNB–DCFC collaboration seeks to bridge that gap by combining PNB’s balance sheet strength with DCFC’s localized, SME-focused lending model.
PNB: Boosting capital access for underserved businesses
Under the agreement, DCFC will deploy the facility primarily toward working capital loans — helping MSMEs finance inventory, fulfill purchase orders, acquire equipment, and manage day-to-day cash flow. The goal is to enable small businesses not just to survive, but to scale.
“Our agreement with PNB is a clear signal of Discovery Capital Finance Corp.’s commitment to financial inclusion for the underserved business community,” said DCFC President and CEO Diosdado Chua Salang Jr. “By partnering with institutions like PNB, we can amplify our reach beyond our branches and ensure that capital flows into regional economies where it is needed most.”
PNB, one of the country’s largest and longest-established banks, has consistently positioned MSMEs as a priority segment, recognizing their role as the backbone of the Philippine economy. Through partnerships with specialized finance companies like DCFC, the bank is able to support smaller enterprises that may fall outside traditional lending models.
Addressing the MSME credit gap
MSMEs account for more than 99 percent of registered businesses in the Philippines, yet they continue to receive a disproportionately small share of formal bank lending. Industry observers note that partnerships between banks and non-bank financial institutions (NBFIs) are becoming increasingly critical in closing this financing gap.
By working with DCFC, PNB is effectively extending its reach into niche and regional markets, while DCFC benefits from a lower cost of funds — allowing it to offer more competitive and responsive financing to borrowers.
The collaboration also reflects a broader shift in the financial services sector, where ecosystem partnerships are being used to improve credit distribution efficiency, reduce risk, and support inclusive growth.
Driving local growth and jobs creation
Photo shows (from left:) Engr. Allan Yumul, Discovery Chief Technology Officer; Trizza Anne Marie Martino, Discovery Chief Financial Officer; Luigi Martino, Discovery Chief Operating Officer; Diosdado Salang, Jr., Discovery President &
CEO; Sherlyn Nicolas, PNB Head, South Luzon Commercial Banking Division; Mildred Alcantara, PNB Head Calabarzon Business Center; and Keith Joshua Dumpit, PNB Relationship Manager.
Beyond individual businesses, the expanded access to capital is expected to have a ripple effect across local economies.
With improved financing, MSMEs are better positioned to expand operations, increase production, and generate employment — strengthening local supply chains and contributing to community-level economic development.
As the Philippines continues to push for inclusive and sustainable growth, initiatives like the PNB–DCFC loan facility underscore the role of collaborative finance in empowering Filipino entrepreneurs and unlocking the growth potential of small businesses nationwide.
