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Wednesday, March 08, 2017

Funding Societies Aims to Help Malaysia SMEs through Crowdfunding

Feb 22, 2017 -

Funding Societies, a Malaysian-founded regional Peer-to-Peer (P2P) financing platform, today launched its debt crowdfunding platform in Malaysia to provide SMEs and investors with trusted alternative financing and investment opportunities.

L - R : Kelvin Teo (Co-Founder), Kah Meng Wong (CEO)

Funding Societies aims to uplift businesses where financing is the most difficult, in particular the small and medium-sized businesses. New businesses are often faced with stifling restrictions when it comes to applying for financing. Funding Societies addresses these challenges head-on by providing an easy and viable option for SMEs looking for short-term financing between 1 and 12 months. Funding Societies also meets the needs of SMEs which require small financing needs (between RM 50,000 and RM 500,000), fast disbursal (1-week disbursal), and a simple hassle-free application process (less than 15 minutes).

Funding Societies is funded by global and regional venture capital firms, Sequoia India and Alpha JWC. By leveraging on their network, Funding Societies strives to incorporate the best practices in Technology and P2P financing regionally and globally, and tailoring them to the local Southeast Asian market.



As one of the only six trusted P2P operators recognized and regulated by the Securities Commission Malaysia (SC), Funding Societies Malaysia continues to work closely with the SC and strictly abides by its regulatory framework to protect SMEs and investors, while allowing room for growth and innovation.

Kah Meng Wong, CEO of Funding Societies Malaysia added, “Funding Societies is driven to support the growth of the Malaysian economy by providing business term financing and invoice financing solutions to SMEs across various industries including manufacturing, wholesale and retail trade, construction and food & beverage. By serving a large variety of sectors, investors are also able to better diversify their investment portfolio and minimize risk.

FACT SHEET:

1.) SMEs
  • Short term financing (1 - 12 month tenors)
  • Small quantum (as small as RM 50,000 and up to RM 500,000)
  • Quick disbursement (1-week disbursal)
  • Simple application process (15 minutes)
  • Flexibility (early prepayment and partial prepayment options)
  • Tailor financing products to needs of SMEs (term financing, invoice financing / factoring)

2.) Investors
  • One of the lowest default rate for P2P financing across Southeast Asia
  • Rigorous credit assessment prior to approving any SMEs for crowdfunding
  • Skin-in-the game philosophy (eligible team members personally co-invest in SMEs along with investors)
  • Low barriers of entry with low minimum investment of RM100, and also enable small investors to diversify effectively
  • Risk based pricing (lower returns for safer investments and vice versa)
  • International and regional experience from existing operations in Singapore and Indonesia, as well as shareholders (Sequoia India, Alpha JWC)
3.) Regulation
  • Recognized and regulated by Securities Commission (SC) in Malaysia and Monetary Authority of Singapore (MAS) in Singapore
  • Appointed by the National FinTech Association of Indonesia to lead the national P2P lending taskforce to promote the development of financial technology in Indonesia (including the regulatory environment)
  • Licensed trustee agent for monies handling to ensure security and transparency of funds

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