Visa and PhilGuarantee Team Up to Boost Credit Access for Filipino MSMEs

Visa, a global leader in digital payments, has signed a strategic agreement with the Philippine Guarantee Corporation (PhilGuarantee) to support the growth of micro, small, and medium enterprises (MSMEs) across the country.

This new partnership aims to open more doors for MSMEs by improving access to credit and expanding financial inclusion through a combination of credit guarantee programs, lending partnerships, and digital capacity-building initiatives.

Through Visa Government Solutions, the collaboration will introduce tools such as streamlined disbursement systems, merchant payment acceptance programs, and financial literacy resources, all designed to help MSMEs operate more efficiently and sustainably.

PhilGuarantee, a key agency under the Department of Finance, plays a critical role in strengthening the country’s guarantee systems for sectors that need it most, including MSMEs.

“Our collaboration with PhilGuarantee reiterates our support for the government’s goal to enhance financial inclusion. MSMEs are vital to the economy, and they deserve access to financial products and services that truly support their growth,” said Jeffrey Navarro, Visa Country Manager for the Philippines.

Supporting the Backbone of the Philippine Economy

There are over 1.2 million MSMEs in the Philippines, accounting for more than 66% of the nation’s workforce. Yet, many continue to face significant barriers in accessing capital. A recent Visa study found that 44% of MSMEs identified cash flow as a top challenge, and over half said their reserves would last less than six months. Shockingly, less than 10% of all corporate loans go to MSMEs.

Visa’s partnership with PhilGuarantee is one of several initiatives supporting the sector. The Visa Foundation previously launched a $100-million small business accelerator program across Asia Pacific to promote digital inclusion, enhance access to funding, and stimulate job creation. This includes support for Philippine MSMEs.

Additionally, Visa continues to roll out its Practical Business Skills program, offering SME owners essential tools in areas like cash flow management, digital payment adoption, and financial planning.

Looking Ahead

This alliance between Visa and PhilGuarantee signals a significant step toward empowering Filipino MSMEs, helping them secure the funding and digital resources they need to grow, compete, and thrive in today’s economy.