One in four of Tala’s five million customers in the Philippines uses loans for business purposes, highlighting how small-scale entrepreneurs are turning digital credit into working capital.
Tala said its borrowers include nano and microentrepreneurs such as sari-sari store (neighborhood store) owners, home-based food sellers, online entrepreneurs, and freelancers who use financing to support their livelihoods.
Tala is also helping borrowers track their financial progress through Grow with Tala, a new in-app feature that allows users to monitor milestones and preview future guaranteed credit limit increases.
The feature complements Tala’s Debt with Dignity advocacy, which promotes transparency and respect-based lending practices.
“Nano and microentrepreneurs are unseen economic engines that drive growth at the grassroots level,” said Moritz Gastl, president and general manager of Tala Philippines. “We aim to back their growth by providing access to convenient and flexible credit that they can use as capital to sustain or even scale their businesses, and ultimately, achieve their financial goals,”
For many Filipino entrepreneurs, starting a business can be a way to support their families, while others pursue a business based on a personal skill or passion. But keeping a small business running often requires working capital.
Ailyn, a housewife from Misamis Oriental, turned to selling home-cooked meals and snacks after her husband became seriously ill and could no longer work. She later used a Tala loan to support the business and eventually opened a sari-sari store.
“I used the loan wisely to keep the capital rolling. Even if I’m a housewife taking care of my children, I still want to have my own income,” Ailyn said.
Her sari-sari store now provides a steadier source of income for her family, while she has also started saving for her children’s education.
Kenniel, meanwhile, started selling cold brew coffee after noticing demand among BPO employees while working as a food delivery rider after office hours. His small cart eventually grew into Timpla Dough.
After setbacks depleted much of his business capital, he turned to Tala for additional funding to restart operations and continue investing in the business.
“Tala earned my trust because it became like a friend to me. It has been there through everything I’ve gone through and witnessed every step of my journey,” Kenniel said.
Tala said the experiences of Ailyn and Kenniel reflect those of many Filipino nano and microentrepreneurs who have the drive to grow but may lack access to financial support.
For these entrepreneurs, access to capital can help turn small business ideas into more sustainable sources of income for their families and communities.