Discovery Capital secures UnionBank credit line for SME lending

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June 7, 2026 | 12:00am

MANILA, Philippines — Discovery Capital Finance Corp. has secured a credit facility from Union Bank of the Philippines to expand lending to small businesses, particularly those in underserved areas outside major urban centers.

In a statement, Discovery Capital said the credit line would strengthen its capacity to provide flexible and non-collateralized working capital loans to small and medium enterprises.

However, the companies did not disclose the size, tenor or pricing of the facility.

Discovery Capital and UnionBank executives inked the credit facility agreement on June 2.

Discovery Capital president and CEO Diosdado Salang Jr. said the partnership marks a major step in the financing company’s push to become a larger player in business lending.

“Our ultimate goal is to become the definitive top-of-mind choice for any entrepreneur or business owner seeking financial support in the Philippines,” Salang said.

“When clients look for a reliable partner to sustain and scale their dreams, we want Discovery to be the very first name they think of,” he said.

Discovery Capital said the UnionBank facility would support its plan to expand its physical and operational presence nationwide through new satellite offices, with a focus on unbanked and underbanked clients in provincial areas.

The company said it aims to use the additional funding to bridge financing gaps that prevent small businesses from scaling up, improving operations or managing cash flows during periods of tight liquidity.

Discovery Capital said its lending operations are supported by risk management models, corporate governance structures and a mix of traditional banking channels and digital networks that allow it to deploy funds more quickly to rural and provincial areas.

It said its on-the-ground presence in the provinces gives the company greater visibility over the needs of local entrepreneurs and enables it to deliver credit support to grassroots clients.

The partnership also aligns with broader efforts to improve financial inclusion in the country, where smaller enterprises remain heavily dependent on internal funds, informal lenders or short-term credit to finance operations.

Discovery Capital said the collaboration with UnionBank would allow it to provide “a sustainable financial stimulus” to provincial economies and local enterprises across the Philippines.