The state-controlled Development Bank of the Philippines (DBP) will launch a new marketplace this month for receivables of small- and medium-sized enterprises (SMEs) to banks and insurance companies-the first of its kind in the country.
DBP president Simon Paterno said Paterno said. "We will roll this out in end-April. It shall be open to all banks and insurance companies. It will create a competitive environment for SME receivables."
The facility, which intends to speed up lending to SMEs, shall create an electronic marketplace for SMEs' receivables from large companies.
Paterno noted that banks and financial institutions were in the business of factoring receivables, however, the processing would usually take a month to do so, as the buyer would still have to authenticate the receivables.
