Consumer finance platform Billease has secured a ₱1-billion credit facility from Philippine National Bank (PNB), expanding its local banking support through an over-collateralized lending structure.

AlphaPrimus Advisors acted as the transaction advisor for the debt facility.

The agreement utilizes the Personal Property Security Registry (PPSR), established under Republic Act 11057 (the Personal Property Security Act). Through the PPSR, PNB holds a registered first-rank claim over a selected pool of Billease’s consumer loan receivables.

Structure of the Credit Facility

The framework provides PNB with secured exposure to the retail consumer credit market while mitigating institutional risk through three specific mechanisms:

Over-collateralization: Billease pledges customer loans exceeding the total borrowed amount to ensure collateral value constantly stays above the outstanding balance.
Monthly Pool Refreshing: Repaid or delinquent loans are routinely removed from the pool and replaced with active, new loans.
Priority Repayment: Cash flows from customer loan repayments tied to the facility follow a strict priority waterfall, directing payments to the PNB facility first.

The structure takes advantage of Billease’s operational cost efficiencies in handling high-volume, small-denomination loans, distributing risk across numerous short-term borrowers.

“Billease has demonstrated strong portfolio quality across different market cycles. This track record gave us confidence to establish this relationship at a meaningful scale. We see this as the beginning of a broader partnership and look forward to exploring additional opportunities to work together,” said Executive Vice President and Head of Institutional Banking Sector Roberto Fo. Abastillas, Philippine National Bank.

Financial Performance and Balance Sheet

The credit facility comes on the heels of sustained growth for the platform. According to its audited financial statement for FY 2025, Billease reported:

Revenue: Expanded by over 80% to ₱8.7 billion.
Net Profit: Reached ₱782 million, marking its third consecutive year of profitability.
Gross Loan Book: Increased by more than 77% to approximately ₱12.5 billion.
Total Assets: Grew to ₱13.7 billion.
Monthly Operations: Onboards over 200,000 new customers and disburses more than ₱5 billion monthly.

As of December 31, 2025, Billease held approximately ₱6.4 billion in total consolidated equity against total borrowings of ₱7.1 billion. This roughly 1x debt-to-equity ratio provides substantial headroom for additional debt financing.

Operations and Strategic Expansion

The platform’s growth is backed by user retention data. An independent behavioral study conducted with Ateneo de Manila University, consisting of 30 in-depth customer interviews, found that Billease has developed strong organic trust among users. Researchers attributed this finding to consistent user experience across the company’s mobile application, customer service, and collection practices.

“We are deliberately expanding our local funding base here at home, with the country’s leading banks, because that allows us to keep serving more Filipinos with affordable, responsible credit. PNB coming on board is a strong signal, it says the largest institutions in the market are ready to fund this kind of lending when it is done with discipline. We have built a profitable business that scales without compromising on underwriting standards, and relationships like this let us fund that growth locally, on improving terms,” said Georg Steiger, co-founder and CEO of Billease.

The PNB facility advances Billease’s broader capital strategy to increasingly tap domestic financial institutions alongside its existing international funding sources. The move coincides with Billease’s entry into traditional banking following its acquisition of a rural bank, an integration planned to expand its product offerings into savings and deposit accounts while optimizing its cost of capital.

“The strongest funding relationships are built on transparency and track record, not promises,” said Garret Go, CFO of Billease.