Funding Societies, the largest small and medium-sized enterprises (SME) digital financing platform in Malaysia and Southeast Asia, announced Monday its latest enhanced product BizFund, to support creditworthy underserved Malaysian SMEs returning to their full economic potential as markets recover following the outbreak of the Covid-19 pandemic.

Funding Societies said in a statement that its zero-collateral BizFund provides Malaysian SMEs with financing up to RM300,000 ($67,355) with repayment up to 18 months.

The simple, hassle-free submission process is fast and initiated through Funding Societies’ online platform. The product is offered for SMEs that have been in operation for at least 12 months, with a minimum of 30 percent local shareholding by Malaysians.

“BizFund caters to SMEs with annual revenue from RM1 million ($224,517) who are looking to grow their business by quickly raising sufficient capital to manage cash flow. They can leverage on BizFund’s zero collateral, hassle-free submission process with disbursement within seven days to enhance their capital fueling business operations and time-sensitive expansion,” said Chai Kien Poon, Country Head of Funding Societies Malaysia.

According to Funding Societies, one major challenge faced by SMEs when seeking financing facilities is the potentially long financing disbursement process. The application process is often complicated involving various documents which must be certified and submitted manually.

In addition to that, most SMEs find their application turned down because they lack the collateral needed. This places SMEs in a tight spot as without adequate financing, SMEs face insufficient cash flow to maintain operations or grow their business.

“BizFund is developed to address these challenges SMEs face when they seek financing to grow their business. By making this business financing facility zero-collateral with fast disbursement, SMEs can tap into the recovery market’s potential which would otherwise be hampered by the lack of business capital,

“Malaysia’s domestic economy is projected to grow between 5.3 percent to 6.3 percent; after a tough two years coupled with delayed payments as customers stretch their ringgit and supply chains are disrupted, access to funds is imperative for SMEs to benefit from that growth as well as contribute towards it,

“Funding Societies, staying true to our mission of enabling the growth of ASEAN SMEs through digital financial services, will continue to identify tailor-made opportunities meeting the needs of SMEs in each market we operate in,” he added.

Funding Societies | Modalku is the largest SME digital financing platform in Southeast Asia. It is licensed in Singapore, Indonesia, and Thailand, registered in Malaysia, and operates in Vietnam.

The firm is backed by SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, Samsung Ventures, BRI Ventures, Endeavor, SGInnovate, Qualgro, and Golden Gate Ventures amongst others.

The FinTech company provides business financing to SMEs, which are funded by individual and institutional investors. In seven years, it has helped finance over 5.1 million business deals close to RM11 billion ($2.47 billion) in funding.

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