In the early days of launching ARQ Capital, Edmund Solilapsi was driven by a bold vision: provide flexible, non-traditional capital to help Philippine SMEs grow. But while the mission was clear, the execution brought a humbling lesson.
“We learned the hard way that not all businesses are ready for structured financing,” Solilapsi tells Financial Adviser PH. “Focus and client qualification are key.”
That insight didn’t come from a textbook—it came from experience.
Why Not All SMEs Are the Same
When Solilapsi co-founded ARQ Capital, the idea was to fill a financing gap for SMEs that banks and equity investors often overlooked. These were businesses too small for institutional deals and too large for microloans—growth-stage companies that needed smart, strategic capital.
But in trying to help as many SMEs as possible, ARQ quickly hit a wall.
“Some businesses weren’t ready in terms of governance, financial systems, or growth mindset,” Solilapsi explained. “We realized that structured capital only works if the business is also structurally prepared.”
The Turning Point: Choosing the Right Clients
Instead of continuing to cast a wide net, Solilapsi and his team made a strategic pivot: they narrowed their client focus. By refining their qualification criteria and aligning with entrepreneurs who had both ambition and operational readiness, ARQ began to see better outcomes.
This shift helped reduce defaults, improve portfolio performance, and build stronger relationships with investors who valued the firm’s disciplined approach.
“We stopped trying to serve everyone,” he said. “Instead, we focused on businesses that could truly benefit from what we offered—and that changed everything.”
A Lesson for Every Entrepreneur
For Solilapsi, the lesson applies beyond finance. Whether you’re building a startup, launching a product, or serving clients, not every opportunity is the right one.
“Saying no is hard at first. But over time, focus becomes your biggest asset,” he told Financial Adviser PH. “It allows you to deliver better value, build deeper trust, and grow sustainably.”
Redefining SME Capital—One Qualified Deal at a Time
Today, ARQ Capital is known not just for providing capital, but for being a selective, strategic partner. The firm continues to grow its footprint across the Philippines, supporting SMEs that are ready to take the next step—with the right financing model behind them.
As Solilapsi puts it, “We’re not just in the business of lending money. We’re in the business of helping the right businesses grow.”
