ProCredit

ProCredit is a tech-enabled lending firm targeting the significant credit gap for small and medium-sized enterprises (SMEs) in the Philippines. Founded in 2023 by banking veteran Adnan Agha, the company positions itself to address a market where an estimated 67% of local SMEs face credit constraints and traditional bank loans are often inaccessible. The founding team, including CEO Adnan Agha and Chief Lending Officer Mitra Dwaipayan, possesses over 50 years of combined experience in emerging markets SME lending, with senior roles at institutions like Citigroup, Standard Chartered, ANZ, and the Asian Development Bank. Agha's 34-year career has focused on operations and risk management in numerous emerging markets, while Dwaipayan has a history of scaling lending businesses in South and Southeast Asia.

The company operates a credit-first, high-touch business model, differentiating itself from purely online lenders. Instead of online applications, ProCredit's process begins with direct, face-to-face meetings between business owners and the firm's senior decision-makers. This approach allows for a rapid in-principal decision on financing terms. The company emphasizes on-site client visits to properly underwrite loans and mitigate risk. ProCredit's revenue is generated from the interest on loans it provides. The business model combines this direct engagement with a proprietary back-end technology platform designed for rules-based underwriting, data analytics, and portfolio management, which aims to reduce operational costs and increase decision-making accuracy.

ProCredit offers flexible financing solutions tailored to the specific needs of SMEs, including flexible repayment options and risk-based pricing. The firm serves a broad range of SMEs that are typically underserved by large commercial banks, which control the vast majority of lending assets in the Philippines. In February 2024, ProCredit secured a significant US$4.1 million in a pre-seed funding round. This capital is intended to expand its loan book and explore a potential move into the banking sector to offer a wider array of services.

Keywords: SME lending Philippines, business financing, Adnan Agha, SME credit gap, tech-enabled lender, Philippine fintech, small business loans, corporate lending, emerging market finance, commercial credit, business loans, financial services, risk-based pricing, debt financing, venture capital, Integra Partners, working capital loans, asset financing, trade finance, business expansion loans, ProCredit Financing Corp