GoTyme Bank has partnered with TikTok to launch TikTok Shop Loans, a financing programme designed for micro, small, and medium enterprises (MSMEs) in the Philippines.

The initiative aims to provide prequalified sellers on the social commerce platform with fast and flexible access to working capital to help them scale their businesses.

The programme uses a data-driven approach, assessing a seller’s transaction history on TikTok Shop rather than relying on traditional credit checks to determine eligibility.

Based on their sales performance, prequalified sellers receive customised loan offers, with funds disbursed within one business day. Loan terms range from three to 12 months, with monthly interest rates between 1.5% and 2.5%, depending on the seller’s business profile.

The partnership seeks to address the financing gap faced by many MSMEs who find it difficult to secure capital from traditional banks.

“We want to give sellers a quick and easy way to access funds while they focus on growing their business,” said GoTyme Bank CEO Nate Clarke. “By using real-time sales data to power pre-qualified offers, we’re helping entrepreneurs get access to the business capital they need, right when they need it.”

GoTyme Bank Co-CEO Albert Tinio added that small businesses “deserve financial solutions that not only empower their business but are also thoughtfully designed around their needs.”

The programme has already onboarded an initial 16 merchants since its soft launch.

GoTyme stated it aims to scale the service, with a target of eventually extending loan offers to up to 20% of the TikTok Shop seller base in the Philippines.

Featured image by zinkevych on Freepik.