Limited access to reliable credit data continues to prevent many Philippine small and medium enterprises (SMEs) from securing financing, according to CIBI Information Inc. (CIBI), even as the sector accounts for 99.6% of businesses and 67% of employment in the country.
The credit bureau said gaps in business information make it difficult for banks and lenders to accurately assess the creditworthiness of SMEs. As a result, many businesses face slower loan processing, lower approval rates, and fewer opportunities to expand operations, hire workers, or invest in growth.
“Many lenders still face challenges in assessing SMEs due to fragmented data and manual onboarding processes,” said Edith Roberto, head of Individual and Business Credit Solutions and Partnerships, CIBI, at an industry event on positive credit awareness and discipline. “Limited visibility into SME operations makes it difficult to accurately assess creditworthiness, contributing to higher perceived risk and lower loan approval rates despite strong demand for financing.”
The issue extends beyond individual lenders. According to the World Bank’s 2025 Philippines Economic Update, the share of businesses using banks, nonfinancial institutions, and supply chain finance for investments remains among the lowest in the region. Filipino companies are also more likely to be denied credit than their counterparts in neighboring countries.
The report attributed these challenges to the lack of a comprehensive credit registry, limited use of alternative credit scoring methods, and the inability of many businesses to provide collateral.
CIBI said stronger and more structured business data can help address these issues by giving lenders a clearer picture of an SME’s financial health and business performance. More banks and financial technology firms are now adopting data-driven credit assessment processes to improve underwriting decisions and speed up approvals.
The company said access to reliable data enables lenders to identify promising borrowers, perform due diligence more efficiently, and monitor potential risks throughout the life of a loan.
“Every decision enabled by trusted data helps expand access to credit for more Filipinos, strengthen trust across businesses and institutions, promote responsible lending and hiring practices, and ultimately, support a more resilient and inclusive economy,” Roberto said. “When decisions are powered by trusted data, opportunities become more accessible for everyone.”.
Credit bureaus such as CIBI provide lenders with business profiles, financial trend analysis, and risk insights designed to support lending decisions. The company said improving the country’s data infrastructure and credit evaluation systems will be essential to expanding financing access for viable SMEs that are often overlooked by traditional lending processes.
For Philippine SMEs, better access to financing could translate into faster growth, more jobs, and greater contribution to the country’s economic development.
[…] CIBI says better credit data can unlock SME financing […]