First Circle has secured a PHP 300 million credit facility from Taiwan-based Cathay Bank.
The transaction marks the first financing partnership between the local digital lender and a Taiwanese financial institution.
Company representatives stated that the funding agreement was successfully finalised in April.
The new capital reinforces growing support for sustainable and inclusive business financing across the Philippines.
This partnership allows Cathay Bank to expand its participation in the local market by supporting a financial technology firm.
The Taiwanese institution currently ranks among the largest financial organisations in its home market.
The bank continues to strengthen its regional footprint across Asia through strategic partnerships and sustainable initiatives.
This new funding base will help the local lender meet the increasing demand for accessible commercial credit.
The digital lender focuses on providing quick and accessible solutions for entrepreneurs who face challenges securing traditional credit.
The company has also been expanding its financial products to support businesses pursuing renewable energy adoption.
This includes specialised solar loan products designed to help enterprises transition to clean energy through flexible options.
Josh O’Donnell of First Circle stated that the new capital enables them to expand credit access to high-quality enterprises.
O’Donnell noted that the traditional banking system often leaves these businesses behind.
The company expects the credit facility to broaden financial access for commercial entities across different industries.
Small and medium enterprises remain a key pillar of the local economy by employing millions of workers nationwide.
The transaction also highlights the strengthening economic ties between Taiwan and the Philippines regarding digital innovation.
Regional financial institutions are increasingly exploring opportunities in the local market amid rising demand for alternative credit solutions.
Featured image: Edited by Fintech News Philippines based on an image by First Circle via its website.
