U Mobile, Funding Societies collaborate to offer P2P financing for SMEs
Malaysian telco U Mobile announced a partnership with Southeast Asian P2P financing platform Funding Societies to offer business financing solutions for Malaysian micro, small and medium enterprises (SMEs) as well as SOHO customers. This will be done through U Mobile’s digital payment acceptance solution, GoBiz.
U Mobile as well as GoBiz customers can access GoBiz’s website to tap into Funding Society’s P2P financing assistance platform, which comes in flexible loan terms and arrangements. Loans offered go from US$706 to US$235,000 (RM3,000 to RM1 million).
“Through U Mobile’s collaboration with Funding Societies, we will be making business financing accessible to micro, SMEs and SOHO Malaysian business owners. This is particularly beneficial for businesses finding it hard to secure a conventional bank loan and especially relevant in these challenging times due to the global pandemic,” says U Mobile chief marketing officer Jasmine Lee.
“The new service is also extremely seamless and convenient as the entire process will be conducted online via our GoBiz website and it takes less than a minute. We hope this service will also help SMEs and SOHO Malaysian business owners to be less bogged down by admin and have more time and resources to grow their business.”
Eligible businesses that submit their applications via the GoBiz platform will be able to tap into a range of Funding Societies services, which include financing amount of up to RM100,000 for micro financing and up to RM1 million for business term financing.
Disbursement approvals here can go as fast as within two working days, with flexible tenure between 3 to 18 months. Retention sum requirement is also waived, with no collateral requirement.
Digital financing has been gaining traction in recent years, points out Funding Societies Malaysia’s cofounder and chief executive officer Wong Kah Meng. P2P financing can help narrow the SME funding gap as an alternative source of capital.
“Whilst SMEs play an instrumental role in contributing to our nation’s economy, a large number are still under-served by traditional financial institutions. Our mission is therefore to help these SMEs to grow,” Wong adds.
“Our partnership with U Mobile will enable their customers to gain greater access to a variety of financing options via the GoBiz platform. This is made possible by leveraging on our proprietary technology infrastructure to seamlessly connect with U Mobile, thereby digitising and simplifying the application process by SMEs, leading to greater access to financing.”