For more than a decade, Abigail Tan navigated the high-stakes world of investment banking, private equity, and infrastructure investing. But despite her success in corporate finance, something didn’t sit right.
“I kept seeing small and medium enterprises—many of them promising, innovative businesses—being left out of the capital conversation,” she tells Financial Adviser PH. “They weren’t being served by banks or traditional equity investors. There was a clear gap.”
That realization led Tan to co-found ARQ Capital, a business development company focused on empowering Philippine SMEs with alternative, strategic financing—not just money, but actual support to help them grow sustainably.
Why Traditional Financing Wasn’t Enough
In her previous roles, Tan saw how rigid lending requirements and control-heavy equity structures stifled the very businesses that fueled economic growth. “SMEs are the backbone of our economy,” she explains. “But when you ask them what’s holding them back, the answer is almost always: access to the right capital.”
Banks demand hard collateral. Equity investors want control. In contrast, ARQ Capital offers flexible, structured financing solutions tailored to the specific needs of growing SMEs. It’s a model built on alignment, not just terms.
“We work closely with founders to structure capital in a way that supports—not suffocates—their business vision,” Tan says.
From Excel Sheets to Ecosystem Builder
ARQ Capital didn’t start with flashy tech or massive funding rounds. “We began with personal savings, a few off-the-shelf tools, and a deep understanding of SME pain points,” Tan recalls.
That lean beginning helped the team stay grounded. From Excel-based systems and GSuite-powered workflows, ARQ gradually evolved into a full-fledged growth partner for SMEs—offering not only capital but also connections, strategic advice, and community support.
According to Tan, early traction came in the first year, but the real breakthrough happened as more SME clients began thriving and scaling with ARQ’s help. “That’s when we knew we weren’t just providing money—we were building something that actually worked.”
Rewriting the Rules of Growth Capital
What sets ARQ apart is its focus on non-dilutive growth capital—funding that doesn’t require founders to give up control. The goal is to help businesses graduate to the next level and become “investable” in more traditional markets, without compromising their independence or vision.
Tan admits it hasn’t always been easy. “One of the hardest parts was shifting mindsets. A lot of SMEs viewed alternative financing as a last resort,” she shares. “We had to prove—through education and transparency—that it could be a powerful tool for strategic growth.”
Advice for Aspiring Entrepreneurs
For those considering a similar path, Tan’s advice is simple but powerful: “Know your market deeply, align with the right partners, and never offer just capital—offer value.”
She also emphasizes the importance of resilience and adaptability. “Not every deal is a good deal. And not every client will be a fit. The key is to stay true to your mission.”
Today, Tan runs ARQ full-time. Her days are filled with strategic planning, mentoring SME founders, and pushing for innovation within the team. But despite the hustle, she says it’s all worth it.
“When you see a business hire more people, serve more communities, or expand into new markets because of the support you gave—that’s the real ROI.”
