Adapting, thriving in the post-pandemic world

THE Covid-19 pandemic drastically impacted businesses worldwide, with small and medium enterprises (SMEs) in the Philippines bearing much of the economic burden. SMEs, which constitute over 99 percent of registered businesses in the country, faced immense challenges as the pandemic unfolded. Many had previously taken out loans to expand or maintain operations, but the economic downturn left them struggling to meet financial obligations.

For the leasing and finance industry, which plays a critical role in supporting SME growth, the pandemic was a turning point. As SMEs defaulted on loans and many stopped operations, leasing and finance companies faced a surge in non-performing loans (NPLs) and financial strain.