Digital Financing with Funding Societies, A Solution that Empowers Malaysian SMEs

How Digital Financing Boost Growth in Emerging Economies - iPay88

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In our rapidly evolving business landscape, small and medium-sized enterprises (SMEs) in Malaysia are facing numerous challenges, particularly when it comes to accessing capital for growth and sustainability. Traditional business financing has long been the primary avenue for SME financing, but in recent years, digital financing options have emerged offering an alternative avenue.

Let’s explore why SMEs in Malaysia could potentially benefit more from digital financing solutions compared to regular business financings and how Funding Societies Malaysia’s SME Micro Financing/-i presents a promising solution to your SME financing needs.

How digital financing benefits your business?

1. Optimised accessibility

One of the key advantages of digital financing is its enhanced accessibility.

Unlike traditional business financings, which often require extensive paperwork, collateral, and a long approval process, digital financing platforms streamline this application process. SMEs can submit their applications online, eliminating the need for physical visits to financial institutions. With this simplified process, digital financing makes funding more accessible, especially for time-sensitive business opportunities or unforeseen expenses.

The elimination of paperwork and physical visits not only saves SMEs valuable time and effort but also reduces the barriers to entry for financing.

2. Fast approval and disbursement

Delays in securing financing can hinder the growth and competitiveness of any business. Digital financing offers a faster approval and disbursement process compared to traditional financing.

As a leading digital financing platform, Funding Societies Malaysia leverages technology to expedite credit evaluations and decision-making. This enables SMEs to receive funds swiftly, sometimes within days, allowing them to seize business opportunities promptly or address urgent financial needs. Their SME Micro Financing/-i and Micro Credit Line offer application and approval processes within 1 week, so you can stay on track with all your payment requirements.

3. Flexible financing options

Digital financing platforms often provide SMEs with a wide range of financing options tailored to their specific needs. Traditional business financings usually follow a one-size-fits-all approach, but digital financing allows for greater flexibility. With Funding Societies, SMEs can access various types of financing, from one-off working capital injection to revolving credit facilities to suit the local SMEs’ business needs.

This versatility empowers SMEs to choose the financing solution that aligns with their unique requirements, providing the necessary capital for expansion, inventory management, or bridging cash flow gaps.

Since May of 2023, Funding Societies now also offers a slew of Islamic Financing solutions for SME owners who would like to enroll in a Shariah-compliant option.

4. Inclusive approach to credit assessment

Traditional banks often have stringent credit assessment criteria that may exclude many SMEs, particularly those with a limited credit history or unconventional business models. Digital financing platforms like Funding Societies Malaysia take a more inclusive approach to credit assessment.

One of the main advantages of this inclusive credit assessment approach is that it recognises the potential of SMEs beyond their financial track records. Traditional banks often rely heavily on historical financial data, which can disadvantage SMEs that are relatively new or have limited financial histories.

On the other hand, digital financing platforms like Funding Societies Malaysia take into account various alternative data points to assess an SME’s creditworthiness.

By considering a wider range of data, Funding Societies Malaysia can provide a more comprehensive evaluation of an SME’s business potential, enabling them to offer financing opportunities to a broader pool of SMEs.

5. Collaborative ecosystem

Digital financing platforms often foster a collaborative ecosystem by connecting SMEs with a network of investors and borrowers. Funding Societies Malaysia, for instance, operates as a peer-to-peer (P2P) financing platform, where investors fund SMEs in need of financing solutions with their investments.

This model not only helps SMEs access financing but also promotes relationship-building and networking opportunities. SMEs can benefit from the expertise and guidance provided by investors, potentially leading to valuable partnerships and mentorship, which are often lacking in traditional banking environments.

Aside from that, digital financing platforms like Funding Societies offer a secure tech-based ecosystem that allows Investors the freedom to choose the type of businesses they would like to invest into. All from the convenience of a friendly mobile app.

6. Tech-enabled convenience

The utilisation of technology by digital financing platforms goes beyond just providing financing solutions – it also brings a host of conveniences and efficiencies to SMEs. Through online portals and user-friendly mobile applications, SMEs can conveniently track and manage their financing needs in a streamlined manner.

One of the primary benefits of digital financing platforms is the ability for SMEs to monitor their financing applications online. Instead of dealing with lengthy paperwork and the need to visit physical branches, SMEs can easily submit their financing applications electronically, saving time and effort.

The online application process typically involves filling out a digital form and uploading the required documents, allowing SMEs to initiate the financing process from the comfort of their own offices or homes.

In addition to application tracking, digital financing platforms provide SMEs with convenient access to their repayment schedules. Through online portals or mobile apps, SMEs can view their upcoming payment dates, instalment amounts, and their remaining tenures.

This information allows SMEs to stay on top of their financial obligations and make timely repayments, avoiding late fees and maintaining a positive credit profile.

7. Online and offline support

There are unique challenges faced by SMEs in Malaysia and providing localised support to cater to their financing needs is something all digital financing vendors strive for.

Funding Societies Malaysia offers a comprehensive support system to all SMEs who partake in their ecosystem. By focusing specifically on the Malaysian market, they can offer personalised guidance and advisory services.

This local knowledge and expertise are crucial in addressing the specific industry dynamics, regulatory landscape, and cultural nuances that impact SMEs in Malaysia thus providing greater financing access to local businesses to grow and expand.

Comprehensive financing packages from payment gateway solutions to working capital injection can help elevate their business scale. Effectively closing the financing gap for underserved SMEs that are creditworthy to upscale.

iPay88 x Funding Societies

Funding Societies Malaysia has recently joined forces with iPay88 to provide an enhanced payment solution for businesses engaging with Funding Societies’ services.

iPay88, a leading payment gateway provider in Southeast Asia, offers a range of payment solutions to businesses of all sizes. With its user-friendly interface and secure payment processing, iPay88 has become a popular choice for online merchants looking to accept payments from customers around the world.

This secure payment solution offers multiple payment options, secure payment processing, a customisable checkout, and easy integrations.

How to get financing for a business?

To help more SMEs scale for expansion, iPay88’s partnership with Funding Societies allows for direct and seamless access to their SME Micro Financing/-i. This microfinancing solution, available in both conventional financing and Shariah-compliant financing, caters to a diverse range of businesses. SMEs can secure financing up to RM200,000 with no collateral requirement.

The application process is entirely online, eliminating the requirement for branch visits. Whether you’re at home, in the office, or even working from a home office, you can conveniently apply for business financing. The flexible tenures offer repayment options of up to 18 months, providing businesses with flexibility in managing their cash flow.

To apply for this financing, you can start by providing a copy of your NRIC and 6 months’ company bank statements.

If your financing application is approved, your funds will be disbursed to you within 48 hours of approval. The process for application and approval is further shortened if you are already an iPay88 merchant.

Click here to learn more about how you can apply for Funding Societies’ SME Micro Financing/-i to grow and expand your business.

Conclusion

Digital transformation is reshaping industries across the globe, and SMEs in Malaysia stand to gain significantly from embracing digital financing opportunities.

The advantages of digital financing over traditional business financing, make it an ideal solution for SME financing needs. Funding Societies’ SME Micro Financing/-i is a great example of a digital financing product that is both versatile and capable of providing a solution that will work for any SME in need.

By embracing digital financing, SMEs in Malaysia can pave the way for sustainable business expansion, foster innovation, and contribute to the country’s economic progress.

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