Packworks, a Filipino startup offering a business-to-business (B2B) FMCG marketplace for sari-sari stores, partnered with 1Sari Financing Corporation to provide access to secure, reliable, and affordable inventory financing services to more than 270,000 unbanked sari-sari stores nationwide.
Under the partnership, sari-sari stores can access a starting credit line of PHP2500 through 1Sari’s inventory financing product, which will be available as an in-app service for Packworks’ partner stores. Sari-sari stores can use the credit to purchase goods and bolster their inventory, ensuring they’re well-stocked and ready for customer demands.
There will also be a prompt payment rebate scheme to promote good paying habits for borrowers. Stores can get a rebate of as much as PHP75 if they pay their dues on time and in full, which they can use for their next availment of inventory financing.
Packworks Co-founder and Chief Platform Officer Hubert Yap sees the partnership as another step forward to tapping the immense potential of over 1.3 million sari-sari stores nationwide.
“Our collaboration with 1Sari Financing Corporation ensures that even the smallest establishments have the tools and resources they need to thrive,” said Yap.
The partnership addresses the need for more access to financial tools and support for sari-sari stores. The World Bank has identified limited financing as a major obstacle to the growth and development of MSMEs, despite the Department of Trade and Industry (DTI) reporting that MSMEs comprise 99% of all businesses in the Philippines and are responsible for 65% of the nation’s employment.
As the Christmas season approaches, businesses experience a significant increase in demand. Sari-sari stores can benefit from the services offered by tapping into vital financial resources, which helps them proactively prepare and stock up for the festive period. This ensures they can meet customer needs and take full advantage of the commercial opportunities presented during this time.
“Collaborating with Packworks supercharges the expansion and funding of well-deserving, credit-worthy sari-sari stores. Through their cutting-edge tech platform, we gain the power to deliver inventory financing to previously underserved micro-enterprises with unparalleled efficiency, revolutionizing their financial prospects,” shared Dindo Velasquez, the Co-founder and Chief Finance and Risk Officer of 1Sari.