Since July 2020, Kaodim has been collaborating with Funding Societies, a digital peer-to-peer financial platform that offers alternative SME financing and investment opportunities. They provide a form of micro-financing, a banking service that aims to help those who are not privileged to have access to traditional financial services.
All business requires funding to grow. However, financing is difficult to obtain especially for smaller businesses. Over 50 per cent of SMEs in Malaysia require more capital to expand their businesses. Many of these SMEs have relied on traditional banking institutions but many do not meet the requirements of the banks. Several banks still find it risky to facilitate loans to them which stunts the development of their businesses.
We acknowledge that many of our vendors are SMEs and are facing this current problem. Thanks to our partnership with Funding Societies, our vendors can gain access to funding more easily. Our vendors can apply for a short flexible loan through Funding Societies’ online platform. The application process is extremely fast with very little documentation needed. Vendors will be able to receive their disbursements within five days of applying. Unlike traditional financing institutions, no collateral is needed and there are no hidden fees and upfront payments. Funding Societies has made the whole process seamless, fast and easy for our vendors. Our part in this process is we will be providing our partner with necessary information about our vendors to assist their approval process. This information includes the vendor’s activity records and payment history.
Micro-financing is the future of financing thanks to companies like Funding Societies. Today, there are more than 10 000 micro-financing institutes around the world that have helped over 130 million people. The impact of micro-financing has been tremendous and the future of micro-financing is positive as it continues to expand beyond the traditional banking institutions. Our partnership with Funding Societies has brought our vendors the opportunity to expand their business and better serve our customers. This partnership is currently ongoing and we are looking forward to the opportunity to expand this partnership further to help more of our vendors.