Supply chain finance fintech company, CapitalBay has announced a major strategic collaboration with Privasia’s e-procurement platform ProcureHere, setting a new milestone in SME financing. Through this collaboration, registered suppliers on ProcureHere will be given access digital financing for transactions made via the platform. This means that registered suppliers get paid earlier for their invoices and buyers have the option to pay later.
ProcureHere platform is a cloud-based procurement platform that facilitates efficient and seamless processes for procurement. Since the first version of ProcureHere, the e-procurement platform has facilitated over RM5 billion worth of corporate purchases. Privasia has a portfolio of over 50 clients including government agencies as well as notable blue-chip corporations such as Westports, Malaysia Airports Holdings Berhad, DRB-Hicom Berhad, and University Sabah Malaysia.
With the collaboration. ProcureHere’s users can bridge their cash flow gap using CapitalBay’s service, in which a buyer that orders to a supplier via ProcureHere will be able to apply for supply chain finance from CapitalBay.
Instead of just assessing the creditworthiness of a business based on collateral, CapitalBay’s credit risk-scoring engine, powered by machine learning technology, also takes into consideration the data available on ProcureHere such as trade history, relationships and performance – truly a gamechanger for SME financing in Malaysia.
“We are pleased to be launching this collaboration with Privasia – a company that shares much of our DNA in finding new ways to help Malaysian businesses accelerate their growth. The new partnership is a key part of CapitalBay’s ambition to broaden its reach across Malaysia and provide meritocratic financing to businesses of all sizes,” said Ang Xing Xian, Chief Executive and Co-founder of CapitalBay.
On the other hand, Puvanesan Subenthiran, Chief Executive and Managing Director of Privasia comments that, “This collaboration allows us to reach a common goal in helping to ease the supply chain process for both the buyers and suppliers. All parties stand to benefit from this collaboration as the digital financing option will now be offered on the ProcureHere platform. On one hand, buyers would be able to receive goods faster, while suppliers enjoy early payment on deliveries. Both parties would also benefit from the improved cashflow through this option.”