Boost offers fast tracked shariah-compliant financing for MSME
By Digital News Asia February 4, 2022
- Offers financing from as low as US$239 up to US$23,900
- Claims application takes less than 10 mins, funds within 48 hours
As part of its efforts to continue supporting micro small and medium enterprises (MSMEs) in their recovery journey, Boost is making available financing that offers MSMEs up to US$23,900 (RM100,000) through ‘Capital Plus,’ financed through its market leading digital lending subsidiary Boost Credit (formerly Aspirasi).
In a statement, the fintech arm of Axiata said ‘Capital Plus’ is a Shariah-compliant micro-financing facility based on 'Commodity Murabahah,' which is ideal for MSMEs.
It offers financing from as low as US$239 (RM1,000) up to US$23,900 (RM100,000) over a 15-month tenure at a low profit rate of 1.2% per month, with no repayment of principal for the first three months, Boost said.
[RM1 = US$0.239]
Additionally, MSMEs do not need any guarantor or collaterals to apply for this financing, it added.
For the merchants on the Boost platform who apply for Capital Plus, they will enjoy a seamless application process not taking more than 10 minutes and funds being disbursed within 48 hours, which the company claimed has become the hallmark of the Boost Credit offering.
According to the SME Association of Malaysia, as the country progresses into the endemic phase, cash flow remains a pressing concern for MSMEs as businesses recover and resume operations.
Sheyantha Abeykoon, CEO of Boost, said the pandemic has posed many challenges for MSMEs to continue running their businesses.
“For most MSMEs, the challenge of maintaining steady cashflow weighs heavily on their minds.
“We are committed to being a reliable partner for our merchants and underserved MSMEs in the country in easing their financial burdens by increasing access to affordable financing,” he said.
Abeykoon said one of the key aspects we have incorporated into Capital Plus is a three-month moratorium for MSMEs, which they will will find this micro-financing facility helpful in giving a boost to their recovery journey and provide them the much-needed capital to re-start their businesses.
The company claimed Boost Biz merchants can conveniently apply in under 10 minutes through the Boost Biz merchant app by tapping on 'Do More' followed by the 'Financing' tile.
Alternatively, merchants can contact their assigned Boost representatives to find out more about Capital Plus.
If eligible, MSMEs who apply will receive approval with funds disbursed within 48 hours (two working days) directly into their bank account, Boost claimed.
In conjunction with the Lunar New year, from now until Feb 28, the first 100 Boost Biz merchants who successfully apply for and receive a minimum financing amount of RM10,000 with Capital Plus will earn an extra RM100 cashback under the 'Huat More with Boost Biz’ campaign.
This cashback will be credited directly into the merchant’s registered bank account. Terms and conditions apply.
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