Rizal Microbank, Inc. (RMB), a subsidiary of Yuchengco-led RCBC, has introduced an innovative financing mechanism with coconut suppliers of Franklin Baker, one of the largest global suppliers of desiccated coconuts. The new scheme seeks to streamline and expedite loan application process for coconut suppliers and farmers.
The partnership enables Franklin Baker suppliers to have access to a reusable source of funds for their business through the Revolving Credit Line (RCL) product offering under the framework of RMB’s Agricultural Value Chain Financing (AVCF) Program. RCL enables verified suppliers and borrowers to loan up to Php10 million.
Loan processing time for Franklin Baker suppliers has been significantly reduced to just one to two working days from the previous one to two weeks. Requirements for loan application have been simplified to include the following: one form of identification for credit report access, a barangay clearance or mayor's permit where applicable, and a statement of account (SOA) for existing loans and/or deposits if available.
“Our commitment goes beyond partnerships. It's about serving the underserved and making banking truly inclusive for all. By forging collaborations like this one with Franklin Baker suppliers, we're breaking barriers and ensuring that financial opportunities are accessible to every micro and small business, fostering a more inclusive and vibrant economic landscape,” said RMB President Raymundo Roxas.
Roxas added that through RMB's proactive approach, underpinned by its core value of malasakit or "compassion," the bank aims to be closer to the market and the realities faced by small entrepreneurs in the coconut farming industry.
“By prioritizing empathy and understanding, the bank fosters a financial inclusion initiative in the coconut industry, ensuring that the benefits of the partnership extend to the underserved,” Roxas said.
As of December 2023, RMB has successfully approved 32 suppliers in Franklin Baker’s Mindanao plants under this program. This year, RMB is expanding the initiative’s reach to Luzon to provide a similar level of financial assistance to coconut suppliers in the region.
RMB is a thrift bank of RCBC and a financial partner of micro and small entrepreneurs. It is focused on making financial services accessible and convenient for the unbanked and underserved communities. To learn more, visit www.rizalmicrobank.com.
