How P2P (Peer-to-peer) Financing Can Help Malaysian SMEs
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
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
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 email@example.com and we shall get back to you at the earliest.