Funding Societies Teams Up with Lazada to Provide Financing for Online Merchantsby Fintech News Malaysia July 2, 2019
Funding Societies Malaysia, the largest digital Peer-to-Peer (P2P) financing platform in the country, announced today its partnership with Lazada Malaysia to offer short-term financing, e-commerce financing, for merchants selling on Lazada platform.
A reflection of Funding Societies and Lazada’s mutual efforts in empowering Malaysia’s micro, small and medium enterprises (SME) sector, the short-term financing is aimed at addressing a common need for growing businesses.
The business financing offered by Funding Societies connects SMEs with investors through an online marketplace and helps merchants on Lazada platform in need of working capital to increase revenue growth, bridge any short-term liquidity gap and overcome seasonal revenue fluctuations.
As an alternative financing option that is gaining much traction in the recent years, P2P financing helps to narrow the funding gap by providing an attractive alternative source of capital for local SMEs alike to fund business expansions and meet other financial requirements.
Its collaboration with Lazada Malaysia as the largest e-commerce platform in South East Asia will provide more opportunities for online businesses to receive tailor-made financing products more conveniently.
Wong Kah Meng, co-founder and Chief Executive Officer of Funding Societies Malaysia, said,
“We hear and understand the struggles e-commerce merchants face when it comes to securing financing to grow their online business, oftentimes overlooked by traditional financial institutions. Our partnership with Lazada will enable such merchants to gain greater access to financing via Lazada’s platform. This is made possible by leveraging on alternative data from Lazada, with consent, as part of our risk assessment. As one of the emerging pillars of our economy, P2P financing will enable greater growth within the e-commerce industry and ultimately contribute to a stronger e-commerce ecosystem.”
Leo Chow, Chief Executive Officer of Lazada Malaysia, commented on the partnership,
“SMEs play an instrumental role in further developing Malaysia’s economy and we are in the right position to help them succeed. As part of our commitment to create a healthy and sustainable e-commerce ecosystem, we are further reducing the entry barriers for sellers to build their own brands on Lazada. Providing merchants with business financing through our collaboration with Funding Societies will further add value to our already comprehensive solutions including our logistics capabilities, technology and extensive network of shoppers.”
Eligible merchants will be able to enjoy the following financing benefits from Funding Societies:
● Lower interest rate
● Retention sum requirement waived
● Flexible tenure between 3-12 months
● Minimum documents required
● Fast disbursement, approval within 5 working days
As the largest P2P financing platform in Malaysia, Funding Societies connects creditworthy local SMEs with individuals and institutional investors through a digital marketplace, thereby significantly increasing access to financing for the SME sector.
The response for the new e- commerce financing has been overwhelming as Funding Societies has received more than 500 applications with the number expected to further increase. Regionally, it has reached RM2 billion in total disbursed working capital to SMEs across Southeast Asia since its establishment.
Applications for business financing through Funding Societies can be made at: http://bit.ly/2LdxXwo