SME digital financing platform Funding Societies has signed an SME Portfolio Guarantee agreement with the Credit Guarantee Corporation Malaysia (CGC) where eligible SMEs can apply for financing between RM50,000 and RM500,000.
Funding Societies and CGC are extending the first tranche of financing up to RM10 million with the aim to propel the growth of Malaysian SMEs by providing them easier access to financing.
SMEs that qualify for the scheme will have access to longer-term financing and get preferential interest rates, which is the lowest among Funding Societies’ existing portfolio of financing from similar segments.
Kelvin Teo, Co-founder and Group Chief Executive Officer, Funding Societies | Modalku said,
“With the PG in place, we would widen access to financing facilities for underserved and unserved SMEs in our key market, Malaysia. These SMEs may have a viable business model but lack the collateral to obtain financing via traditional financing channels.
Our financing would support SMEs to either expand or sustain their operations, particularly as SMEs bounce back post-Covid in resilience. As for our investors, the SME PG also lowers the risks of non-repayment by SMEs.”
President & Chief Executive Officer, Datuk Mohd Zamree Mohd Ishak said,
“CGC is pleased to launch this inaugural Portfolio Guarantee (PG) with Funding Societies, our first collaboration with an SME digital financing platform.
This RM10 million PG will enable Funding Societies to offer the lowest financing rate and the longest tenure up to 60 months compared to the current tenure of up to 18 months to unserved and underserved MSMEs.”
Source: https://fintechnews.my/35015/fintech-lending-malaysia/funding-societies-cgc-sign-rm10-million-guarantee-for-sme-financing/