In the world of finance, capital is king—but not all capital is created equal. For Abigail Tan, co-founder of ARQ Capital, the key to unlocking small business success lies in rethinking how capital reaches SMEs.
“Small and medium enterprises power our economy, yet they remain underserved,” Tan tells Financial Adviser PH. “Traditional financing models—bank loans and equity investments—often don’t work for them. What SMEs need is capital that grows with them, not against them.”
After over a decade in investment banking and private equity, Tan saw the same pattern repeat: strong businesses with limited access to the right kind of funding. That led her to launch ARQ Capital, a firm providing alternative, structured financing for SMEs ready to scale but lacking traditional options.
The Gap in SME Financing
Tan explains that banks require hard collateral and equity investors often demand control, both of which are roadblocks for growing companies. “It’s a broken system for SMEs. We wanted to fix that,” she says.
With ARQ Capital, Tan and her team offer what she calls “smart capital”—a hybrid between traditional debt and equity that aligns with the growth trajectory of the business. “We design financing solutions based on what the SME needs to grow—not just what’s convenient for us as investors.”
A Platform Built for Growth
Tan didn’t come into the space blindly. Her years of experience structuring billion-peso deals gave her insight into what truly helps businesses scale.
“We realized the problem wasn’t just lack of funding—it was lack of the right kind of funding,” she tells Financial Adviser PH. “So we built ARQ to be more than just a lender. We’re a partner in growth.”
That partnership includes access to mentorship, strategic planning support, and connections to other businesses in ARQ’s growing ecosystem. “SMEs don’t just need money,” she adds. “They need people who believe in them and who can walk with them through their scaling journey.”
Shifting the Narrative Around Capital
One of the biggest challenges ARQ faced in its early days was educating the market. Many SME owners were unfamiliar with alternative financing and skeptical of non-bank options.
But with consistent outreach, transparency, and real-world case studies, ARQ has built trust. “We’ve seen businesses go from survival mode to thriving mode,” says Tan. “And that’s when people really begin to understand the power of alternative capital.”
The Future Is Flexible
For Tan, the future of SME financing is rooted in flexibility and alignment. Instead of forcing founders to give up equity or pledge hard assets, ARQ creates financing plans tailored to their cash flow and growth plans.
“It’s time we stop treating SMEs as high-risk outliers and start designing systems that actually support them,” she says.
Her advice to aspiring entrepreneurs and SME advocates? “Add value beyond capital. Listen, customize, and partner for the long run.”
