With micro, small, and medium enterprises (MSMEs) finding difficulty accessing financing from traditional financial institutions due to challenges such as complex application processes, lack of collaterals, and being considered too small, GoTyme Bank and e-commerce platform Tiktok Shop formed a partnership to remove barriers faced by 77% of MSMEs in securing loans and announced the offering of TikTok Shop Loans for them.
MSMEs comprised more than 99% of enterprises in the country and employ 64.67% of the local workforce. They are the backbone of the economy and yet most of them still can’t access financing for them to grow.
With TikTok Shop loans powered by GoTyme Bank, MSMEs now have a solution to meet them where they are – using their sales performance on TikTok Shop to unlock funding opportunities. This initiative not only addresses a critical gap in access to capital, but also empowers sellers to reinvest in inventory operations and growth without the lengthy processes or rigid requirements of traditional loans.
“TikTok Shop’s mission is to empower Filipino MSMEs through social commerce, and with TikTok Shop Loans powered by GoTyme Bank, we’re taking that commitment one step further,” said Franco Aligaen, marketing lead of TikTok Shop Philippines. “We believe that fast and flexible financing enables sustainable growth and empowers MSMEs to thrive in the dynamic digital landscape.”
The GoTyme Bank-TikTok Shop partnership signals not more than just a new product. It represents a shift in approach for business support in the Philippines. For TikTok Shop, it is about giving support for the seller community and letting them succeed. For GoTyme Bank, it’s about making financial services more inclusive. For their valued sellers, it’s about giving access to the kind of capital that lets them move faster, and takes advantage of growth rates when it is right in front of them.
“It’s a collaboration that combines the strength of one of the top country’s fastest growing banks and the fastest growing digital e-commerce platform. Together, we build a financing solution designed specifically for TikTok Shop sellers, a product that makes funding more accessible and more flexible for them,” said Albert Tinio, co-CEO of GoTyme Bank.
Nate Clarke, CEO of GoTyme Bank, said “we want to give sellers a quick and easy way to access funds while they focus on growing their business. By using real-time sales data to power pre-qualified offers, we’re helping entrepreneurs get access to the business capital they need, right where they need it. This partnership brings us closer to building a more inclusive financial ecosystem for every Filipino business owner.”
Sellers who have a good track record and capable of repaying loans can apply for a loan using mobile applications. Loan offerings, with terms between three months and 12 months, are based on the seller’s transaction history on the TikTok Shop platform. Monthly interest rates on loans vary between 1.5% and 2.5%. Funds are available within a day after loan approval while repayment can be made through bank transfers.
