Funding Societies, AMTC in partnership to support and empower MSME ecosystem
By Digital News Asia January 1, 2018
- Funding Societies becomes the first financing partner of the AMTC
- Trade opportunities created by the AMTC will be referred to Funding Societies for financing
FUNDING Societies, a Southeast Asian digital lending platform, and the Asia Pacific MSME Trade Coalition (AMTC) signed a memorandum of understanding (MOU) to bring opportunities of financing and business growth for local MSMEs (Micro, Small and Medium Enterprises).
This agreement makes Funding Societies the first financing partner of the AMTC. With the MOU, Funding Societies and the AMTC will co-create initiatives to encourage growth of MSMEs across the region.
The AMTC, a coalition of MSMEs across the Asia Pacific region, along with Funding Societies will create educative financing related workshops for small businesses with limited or no access to funding.
At the same time, trade opportunities created by the AMTC for the MSMEs will be referred to Funding Societies for financing. Additionally, businesses introduced by Funding Societies will receive free membership as well as access to the resources provided by the AMTC.
Funding Societies connects local MSMEs with investors through an online marketplace. Businesses can obtain up to S$1 million in unsecured loans and invoice financing, through a simple online process with fast approval.
Meanwhile, individuals and institutions can invest into these loans and earn returns of up to 14% per year, higher than typical deposits, bonds and traditional investment instruments.
According to a Visa and Deloitte study, four in 10 SMEs in Singapore are unserved by existing financial institutions when addressing their financing needs. Yet at the same time, 72% of Singapore SMEs require funds to better manage their working capital and cash flow.
The lack of access to financing faced by SMEs is an issue that needs to be addressed. Alternative financing providers like Funding Societies are addressing this gap by providing funding solutions for the growth of local businesses.
"Amongst the challenges an MSME faces throughout its journey, financing certainly tops the list. Funding Societies helps to bridge this gap for MSMEs in the region and is an ideal resource for members in our community.
“The AMTC is delighted to collaborate with Funding Societies, which is equally aligned in this commitment to bring resources and awareness to the MSME ecosystem," said Annie Fong, project director of the AMTC.
Kelvin Teo, co-founder and CEO of Funding Societies, added: "We work closely with the MSME ecosystem as we are committed to supporting the growth of local businesses. The AMTC is a valuable partner that shares the same vision as us. We believe our collaboration will offer more holistic solutions for businesses."
Funding Societies is a leading digital lending platform in Southeast Asia with operations in Indonesia (under the name Modalku) and in Malaysia.
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