Funding Societies unveils virtual card 'Elevate' for SMEs

  • Card entitles qualified MSMEs to interest free credit for up to 55 days
  •  No personal guarantees are required for limits under US$22,000

Funding Societies unveils virtual card 'Elevate' for SMEsFunding Societies announced that it has launched Elevate, a virtual card solution for micro, small and medium enterprises (MSMEs) in Singapore. 

In a statement, the SME digital financing platform said the card is available on a credit line on its website and mobile app, and entitles qualified MSMEs to interest free credit for a period of up to 55 days. 

Unlike bank alternatives, no personal guarantees are required for limits under US$22,000 (RM92,000), it added.

Funding Societies said Elevate will close the 80% corporate credit card gap in the country’s MSME sector, which currently sees many business directors take on personal liabilities on their own credit cards in order to unlock cash flow for the company. 

This launch comes on the back of the company’s recent US$294 million Series C+ fundraise, some of which it has channeled to such new strategic products, solidifying its position as a one-stop shop for the region’s MSME banking needs, it said.

Elevate, a free-to-apply credit line that comes with an opt-in virtual card, is enabled by banking-as-a-service provider, MatchMove, and developed in partnership with Mastercard.

It offers small businesses rapid access to credit limits, where approvals of applications are given within one business day, Funding Societies said

Business owners can easily apply for the card and credit line via Funding Societies’ website using Myinfo Business, and thereafter begin tracking and managing all spendings within the platform’s dedicated mobile app, it said.

According to Funding Societies', Elevate is an expense card for growing businesses and entails Mastercard privileges such as a Corporate Liability Waiver feature that protects MSMEs against unauthorised charges being made to their business card accounts.

This is in line with the organisation’s expansion into financial offerings for MSMEs beyond lending, like expense management, it said.

The introduction of Elevate comes at the right juncture as MSMEs still face difficulties in obtaining a corporate credit card from traditional financial institutions due to their substantially lower spending and the need for customised credit terms, it said.

This is despite being the largest contributor to Singapore’s economy, comprising 99% of total enterprises and contributing 70% of total employment in 2020, it added.

Funding Societies unveils virtual card 'Elevate' for SMEsShrawan Saraogi (pic,), Funding Societies group head of strategy, new business said in an environment where traditional providers issue corporate lines to only large businesses with a strong credit track record, or offer debit cards with deposit accounts, Funding Societies’ Elevate serves an urgent and important need of micro and small businesses in Singapore who need flexible credit to pay for their expenses. 

“Our SMEs are able to create such an impact on regional economies largely because we work with them to develop financing solutions they really need.

“This product is a business card designed specifically for SMEs to take their businesses to the next level,” he said.

Furthermore, it said Elevate closes the loop for the 83% of MSMEs in Singapore who are increasingly digitising their operations, by compacting all company transactions and expenses onto a single-view online dashboard. 

Since this financing solution launched in January, Funding Societies said ithas approved over US$737,000 (RM3 million) in credit limits to small businesses across the nation.

Within two months, almost one quarter of that limit has been used by its clients for company purchases and supplier payments, it claimed.

Elevate serves enterprises across all verticals, including the F&B, retail, e-commerce, logistics, and technology sectors.

MSMEs interested in applying for Funding Societies’ Elevate virtual credit line and card can do so here.

 

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