KUALA LUMPUR: Peer-to-peer (P2P) financing platform, Funding Societies Malaysia is cooperating with Lazada Malaysia to offer short-term and e-commerce financing, specifically for traders on Lazada e-commerce platform.
In a joint statement today, they said P2P platform is an alternative option for financing which has been gaining tremendous interest over the years.
The platform it explained, has managed to decrease the financing gap by providing an attractive source of funding for local micro, small and medium enterprises (SMEs) to finance their business expansion as well as in meeting other financial needs.
Co-founder and chief executive officer of Funding Societies, Wong Kah Meng said his company understands the difficulties faced by e-commerce traders in securing financing to build their online business, where they are often neglected by traditional financial institutions.
“Therefore, our partnership with Lazada will allow traders to gain access to financing more easily through the Lazada platform.
“This is made easier by the use of alternative data from Lazada with consent, as part of our risk assessment process. As one of the more prominent economic pillars, P2P funding will enable rapid growth of the industry and contribute to a stronger e-commerce ecosystem,” he said.
Meanwhile, Lazada Malaysia’s chief executive officer, Leo Chow said SMEs play an important role in developing the Malaysian economy and the e-commerce platform is well-positioned to drive their success.
“As part of our commitment to creating a healthy and sustainable e-commerce ecosystem, we are now reducing the barriers for traders to build their brand in Lazada.
“By providing business financing through co-operation with Funding Societies, it will further enhance the value of our comprehensive solutions including on the logistic, technology and buyers network,” said Leo on the collaboration.
As a P2P platform, Funding Societies connects local creditworthiness SMEs with individuals and institutional investors through the digital market, thereby enhancing the SMEs’ access to financing.
The joint statement added that the response to the latest e-commerce financing has been encouraging with Funding Societies receiving over 500 applications within three days of the launch.
The number of applications is expected to increase further.
Funding Societies has disbursed a total of RM2 billion in working capital to SMEs across Southeast Asia since its inception. – Bernama
