HSBC Malaysia has extended its first social loan facility to CapBay to help more Malaysian SMEs secure funding.
The facility was issued through Bay Harbour Ventures, CapBay’s special purpose vehicle, and is designed to widen SME access to financing by helping the company connect smaller businesses to multiple liquidity providers.
The structure allows CapBay to use its portfolio of loan receivables to manage funding needs more efficiently, monetise receivables earlier and reinvest capital to support additional borrowers.
HSBC and CapBay can also monitor the performance and health of the receivables portfolio more proactively through this arrangement.
SMEs continue to face financing constraints, especially those without collateral or comprehensive financial records.
They remain a central part of Malaysia’s economy, and improving access to credit is viewed as critical to raising SME contribution to GDP from 38.4 percent to 50 percent by 2030.
Christina Cheah, Head of Global Corporates and International Mid-Markets HSBC Malaysia said,
“In a recent study by the Institute for Capital Market Research (ICMR), market-based financing plays a pivotal role, facilitating the allocation of capital that empowers SMEs to thrive and make significant contributions to Malaysia’s socio economic development.
The social loan provided by HSBC to CapBay is an example of an innovative solution which opens up access to capital liquidity for SMEs to fund their working capital requirements in a more efficient manner,” added Christina.
Ang Xing Xian, Co-founder and CEO of CapBay said,
“At CapBay, we complement the financial ecosystem by focusing on these SMEs — leveraging alternative data from the financial supply chain and our AI driven, proprietary credit-decisioning model to underwrite these businesses more effectively and provide broader, faster access to financing.
We strive to provide smart and inclusive financing to businesses across Southeast Asia and are proud to partner with HSBC Malaysia through this social loan facility, which enhances access to funding for SMEs that are key drivers of Malaysia’s economic growth and socio-economic development.”
Hear CapBay’s founding story in our interview with Ang Xing Xian here.
