PHILGUARANTEE: the Philippine Guarantee Corporation
PHILGUARANTEE is the principal agency for state guarantee finance in the Philippines. It does not lend to you and it does not sell to you. It stands behind the Philippine bank that funds the factory making your order, and that is exactly why an overseas buyer should understand it.
One agency from five guarantee programs
Executive Order No. 58, series of 2018, signed on 23 July 2018, consolidated the country's scattered state guarantee programs into a single corporation. The Department of Finance declared the consolidation effective on 31 August 2019 under Memorandum Circular 001.2019. The surviving entity was the Philippine Export Import Credit Agency, renamed the Philippine Guarantee Corporation.
What PHILGUARANTEE does, and what it does not do
A state guarantee agency is not a shop front bank. It works behind the lender and behind the factory. Knowing the boundary keeps your expectations honest.
What it does
- Guarantees a share of a bank loan made to a Philippine enterprise, so the lender carries less risk.
- Works through lending institutions, such as banks, cooperatives and rural banks, not directly with the borrower.
- Covers sectors that include trade, exports, housing, agriculture, energy, infrastructure and MSMEs.
- Administers the Agricultural Guarantee Fund Pool and the Industrial Guarantee and Loan Fund.
- Encourages banks to lend to productive borrowers where the commercial market would hold back.
What it does not do
- It does not lend to the overseas buyer.
- It does not pay the overseas buyer if a supplier fails to perform.
- It does not replace your own letter of credit, contract or inspection.
- It does not guarantee product quality, delivery dates or the commercial terms you agree.
- It does not remove the need for your own due diligence on the supplier.
The guarantee programs that stand behind a supplier
PHILGUARANTEE publishes a family of guarantee facilities. Each one covers a share of a loan, never the whole amount, because the borrower and the lender keep skin in the game.
| Facility | What it covers | Why a buyer should care |
|---|---|---|
| MSME Credit Guarantee Facility (MCGF) | A share of a bank loan to a micro, small or medium enterprise. | A smaller supplier can accept your order and still fund fabric and trims. |
| Medium and Large Enterprises Credit Guarantee Facility (MLE CGF) | A share of a bank loan to a medium or large enterprise. | Larger production runs get the working capital they need. |
| Agriculture Credit Guarantee Programs, including the Agricultural Guarantee Fund Pool | Loans across agricultural and agri based value chains. | Upstream fibre, yarn and input supply stays financed. |
| Housing Guarantee Programs, from the former Home Guaranty Corporation | Housing and mortgage related loans. | Shows the breadth of the agency beyond trade and production. |
| Sustainable Energy Credit Guarantee Facility (SEGF) | Loans for sustainable energy projects. | Mill and factory power reliability supports steady output. |
Program names follow the published PHILGUARANTEE program list. A guarantee protects the Philippine borrower and its bank. It creates no direct claim for the overseas buyer.
Why a foreign buyer should care
The value of a state guarantee to you is indirect but real. A supplier that can borrow is a supplier that can buy materials, pay a workforce and hold a schedule.
Production is funded
A guaranteed loan gives the supplier cash for fabric and trims, so a large order does not stall while it waits for your deposit.
Delivery is steadier
A funded factory buys materials on time and holds its schedule, which protects your delivery window and your own customer commitments.
More suppliers can say yes
Guarantees persuade banks to lend where they might otherwise decline, which widens the pool of Philippine suppliers able to take your work.
Your contract is the real shield
No guarantee replaces a clear contract, an agreed inspection process and a payment instrument matched to the trust you have built.
Two dates that matter
- 23 July 2018 Executive Order No. 58, series of 2018, is signed. It orders the merger of the Home Guaranty Corporation and PhilEXIM, the transfer of the guarantee functions, programs and funds of the Small Business Corporation, and the transfer of the Agricultural Guarantee Fund Pool and the Industrial Guarantee and Loan Fund.
- 31 August 2019 The consolidation takes effect under Memorandum Circular 001.2019. The surviving entity, PhilEXIM, is renamed the Philippine Guarantee Corporation.
- Today PHILGUARANTEE operates from Makati as an attached agency of the Department of Finance, and reported a total guarantee portfolio of roughly 237 billion pesos by December 2023.
Related reading
Questions buyers ask about PHILGUARANTEE
What is PHILGUARANTEE?
The Philippine Guarantee Corporation, or PHILGUARANTEE, is the principal agency for state guarantee finance in the Philippines. It is a government owned corporation attached to the Department of Finance. It was created in 2018 by Executive Order No. 58, when five state guarantee programs and agencies were consolidated.
Is PHILGUARANTEE the same as PhilEXIM?
Yes, in succession. Executive Order No. 58, series of 2018, renamed the Philippine Export Import Credit Agency, known as PhilEXIM and also known as TIDCORP, as the Philippine Guarantee Corporation. The consolidation took effect on 31 August 2019.
Does PHILGUARANTEE pay me, the overseas buyer?
No. PHILGUARANTEE guarantees loans made by Philippine lending institutions to Philippine enterprises. It creates no direct claim for a foreign buyer. Your protection comes from your contract, your chosen payment instrument and your own due diligence on the supplier.
Which programs did PHILGUARANTEE absorb?
It consolidated the Home Guaranty Corporation, the Philippine Export Import Credit Agency (PhilEXIM), the guarantee functions, programs and funds of the Small Business Corporation, the Agricultural Guarantee Fund Pool and the Industrial Guarantee and Loan Fund.
Can a foreign buyer apply to PHILGUARANTEE directly?
No. PHILGUARANTEE works through partner lending institutions in the Philippines, not with borrowers directly, and certainly not with overseas buyers. You benefit indirectly, because your Philippine supplier can borrow against a guaranteed facility and keep production funded.
What does a state guarantee change for my order?
It widens the number of Philippine suppliers able to finance a large order and reduces the chance that a funded order stalls for lack of working capital. It does not change your own risk. Keep a clear contract, an agreed inspection process and a payment instrument matched to your level of trust.
Where is PHILGUARANTEE based?
Its head office is at the 22nd to 24th floors, BPI AIA Makati, 6811 Ayala Avenue, Bel Air, Makati City. It is an attached agency of the Department of Finance.
Source your Philippine apparel order with confidence
Tell us the market, the quantity and the target date. We make custom apparel in the Philippines and ship worldwide. We will confirm terms and line the order up with a funded production slot.