Asialink Finance Corp. is expanding its loan footprint in the fast-growing market for brand-new and used trucks by allocating P2.4 billion worth of loans that are essential to the growth of e-commerce and logistics.
“We are seeing the huge potential of this market as more and more people shift from brick-and-mortar stores to digital marketplaces,” said Asialink group head of truck loans Rufino Gomez Jr.
“When you buy something online, it mobilizes a vast network of factories, warehouses and logistics firms to get the product you want on your doorsteps. Trucks play a vital role in this supply chain,” he said.
Gomez said the recovery and growth following the crippling Covid-19 pandemic were fueling a construction and manufacturing boom that also relies on trucks to move raw materials and workers.
Asialink said it is earmarking more funds for lending to small and medium enterprises to serve this market.
The company has been lending to logistics, construction, hauling, freight forwarding and manufacturers over the past year.
Asialink is financing the purchase of vehicles from all-purpose vehicles, light duty trucks, heavy duty trucks to specialized trucks through partner dealerships.
Each borrower can secure up to P10 million in loans at competitive rates, Gomez said.
These loans carry interest rates of 1.1 percent to 1.3 percent per month, with terms of up to 60 months for new trucks and vans and 36 months for used ones.
Asialink requires that the borrower be in business and operating profitably for at least a year. Its goal is to lend up to P2.4 billion in truck loans by end-2024.
Asialink released over P12 billion in loans in 2023, underpinned by a growth in its customer base and key partnerships that provided funds for lending.
It had close to 27,000 new borrowers as 2023 drew to a close.