Funding Societies Malaysia, the largest peer-to-peer (P2P) financing platform in the country and Southeast Asia, and Razer Fintech, the fintech arm of Razer and the region’s leading offline-to-online (O2O) digital payment network, has announced a partnership to offer short-term business financing solutions for merchants under Razer Merchant Services (RMS).
The partnership is a reflection of both platforms’ mutual aim to empower Malaysia’s micro, small and medium enterprises (MSMEs) with short-term financing to help expand their businesses, particularly extending their reach to 20,000 businesses under multiple segments including MSME retailers, F&B vendors and online sellers registered under the RMS platform.
Through this collaboration, eligible merchants will have access to quick and tailor-made short-term financing to help them meet business operations needs such as cyclical cash flow gap, urgent project expenses, unforeseen one-off expenses, and to overcome seasonal revenue fluctuations, especially in this challenging economic period due to the Covid-19 pandemic.
An Ernst & Young survey published in June detailing the impact of the pandemic and the Movement Control Order (MCO) on Malaysian businesses found that nearly half of the 670 surveyed SMEs urged the need for financing reliefs to cope with operations costs. The survey also made clear that financial relief and technology solutions are crucial areas of intervention to help companies survive, both of which are gaps that the two fintech firms are well-positioned to fill.
Wong Kah Meng, Co-founder and Chief Executive Officer of Funding Societies Malaysia, said, “Our partnership with Razer Fintech will allow greater access to financing for the RMS merchants in obtaining collateral-free, short-term financing solution with the added benefits of quick and seamless online application experience – thus providing shorter turnaround time and minimum documentation requirement. As the region’s largest P2P financing platform, Funding Societies has been at the forefront of driving financing inclusion amongst the MSMEs across the region, and this partnership with Razer Fintech will greatly help to fulfil our mission to reach out to many more underserved and unserved MSMEs.”
Lee Li Meng, Chief Executive Officer at Razer Fintech, commented on the partnership, “We are thrilled to partner with Funding Societies Malaysia as we leverage their extensive P2P financing platform to further grow our fintech offerings and digital payments ecosystem for our RMS merchants in Malaysia. We have established a strong market position in Malaysia and now, we are excited to expand our capabilities, together with Funding Societies Malaysia to support the underserved MSMEs by offering them access to more seamless financial solutions as they grow their businesses.”
As a preferred alternative financing solution that has been gaining traction in recent years, P2P financing addresses the common pain points around traditional financing applications, often faced by MSMEs. These include collateral requirements, onerous documentation requirements, slow turnaround time, and high minimum requirements. These result in more hurdles for smaller businesses to obtain quick financing in times of need to flourish their businesses.
Eligible businesses under Razer Merchant Services (RMS) will be able to enjoy the following financing benefits from Funding Societies:
- Waiver of retention sum
- Fast disbursement with approval as fast as within 3 to 5 working days
- Flexible tenure between 6 to 18 months
- No collateral requirement
- Minimal documentation requirement
As part of the partnership, Funding Societies will also be introducing a new product, the micro credit line, to eligible RMS merchants. Unlike its other business term financing products, the line facility enables SMEs to draw a short credit period (between 45 days to 90 days) anytime. The offering is set to be launched within the next coming weeks.