Digital bank GoTyme Bank and video commerce platform TikTok Shop have launched TikTok Shop Loans, a new lending feature for Filipino MSMEs selling on the platform.
“(About) 77% of Filipino MSMEs report having difficulty accessing loans,” said Albert Tinio, co-CEO of GoTyme Bank. “That’s nearly 8 out of 10 small businesses facing barriers when trying to secure loans from traditional financing institutions, whether it’s because of complex application processes, lack of collateral, or being considered too small. Very often, these businesses are left behind. And these are not fringe cases.”
Tinio said traditional lending systems were not designed for small online sellers. He noted that many MSMEs face long lists of requirements just to qualify for financing, despite being active in the digital economy.
“The new partnership offers TikTok Shop Loans, designed to be more accessible and flexible for digital-first entrepreneurs. The initiative aims to support MSME growth and success in the digital economy,” said Franco Aligaen, lead of Marketing of TikTok Shop Philippines.
TikTok Shop Loans is integrated into the TikTok seller app. It uses seller data already available on the platform to assess eligibility, removing the need for financial statements or other documents often required by banks.
The product provides capital to help sellers manage sudden sales growth, address cash flow issues, and expand into new categories.
“The real disruptive power of this product is everything happens in that same app that they already run their business. It’s simple,” said Nate Clarke, CEO of GoTyme Bank. “We believe banking can unlock more opportunities; this is why we are so excited about this partnership because we believe TikTok Shop Loans has the potential to unlock these sellers and take them to the next level.”