How P2P (Peer-to-peer) Financing Can Help Malaysian SMEs

Compared to bank loans, P2P financing (similar to business loans or working capital loans) provides competitive interest rates and requires no collateral. P2P financing is an ideal short-term credit solution for working capital needs, strengthening of business cash flows, expanding business operations, financing newly secured projects, equipment purchases and meeting operating expenses.


Despite their critical role in the economy, Malaysian SMEs face a major challenge in getting the financing they need to support their growth: Almost 50% of Malaysian SMEs are either unserved or underserved by banks and financial institutions. Access to working capital and business financing ranks as the number one need for Malaysian SMEs – no matter how capable or how promising an SME, it is near impossible to scale up without the necessary financing.

 

There is often a mismatch between the financing products offered by banks are and the needs of Malaysian SMEs. For example, SMEs lack the collateral to satisfy bank lending requirements, while the lengthy application and disbursement process is impractical for SMEs, who require fast access to financing to meet short-term cash flow needs. There is a dire need for an alternative financing, one that specifically targets the needs of SMEs. We have the answer, and it is P2P financing, or otherwise known as debt crowdfunding!

 

Compared to bank loans, P2P financing (similar to business loans or working capital loans) provides competitive interest rates and requires no collateral. P2P financing is an ideal short-term credit solution for working capital needs, strengthening of business cash flows, expanding business operations, financing newly secured projects, equipment purchases and meeting operating expenses. P2P financing is also an excellent option for younger, smaller, revenue-generating SMEs, but do not have the necessary collateral to apply for bank loans. The application process is simple and fast (usually less than 10 minutes); the P2P operator will assess your business and approve the financing (similar to business loan) before entering the crowdfunding process and cash disbursement. The end-to-end process usually takes less than a week (compared to 2 – 3 months for most banks)!

 

Funding Societies (Modalku Ventures Sdn Bhd) is one of the first P2P financing operators to be registered and regulated by the Securities Commission Malaysia. We are one of the leading P2P financing platforms in Southeast Asia and are committed to helping meet the business funding and working capital financing needs for SMEs in Malaysia. With a strong track record of already serving a large number of SMEs in Singapore and Indonesia (having extended almost RM 50 million in financing to more than 200 SMEs), we have deep knowledge and understanding of the specific funding needs of small businesses.

 

We will soon launch a suite of business financing products targeting the complete spectrum of SMEs – from the young to the more established as well as across industries. In the meantime, please visit our website at www.fundingsocieties.com.my and register your interest! We will also keep you posted on our developments and our launch in Malaysia!

 

Connect with us and follow us on Facebook, LinkedIn and Twitter. For further queries just email us at info@fundingsocieties.com.my  and we shall get back to you at the earliest.



November 02, 2016    Funding Gap: SMEs in Malaysia
July 01, 2016    Insuring Your Future




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