As we approach the era of the new industry revolution, everything changes very fast. From buying our groceries and daily supplies from markets, today we have evolved into buying anything with a simple click on your phone or computer. This, in essence, is where our collaboration with Funding Societies ( P2P financing ) will make a difference to small and medium-sized enterprises (SMEs).
Cheng & Co and Funding Societies have the same vision to provide our clients a platform to invest and obtain short-term cash flow easily. Thus, both parties engaged in a strategic partnership to broaden and simplify access to business financing for creditworthy Malaysian SMEs. Funding Society is Malaysia’s first P2P financing platform regulated by Securities Commission Malaysia with operations across Southeast Asia. P2P financing platforms such as Funding Societies connect SMEs with investors through an online marketplace, thereby increasing access to financing for the SME sector.
Investors investing in SMEs through this platform could earn returns of up to 14% per year, which is higher than fixed deposits, bonds, and other traditional instruments.
Meanwhile, SMEs could obtain up to RM500,000 in working capital to expand their businesses through a fast and simple online-based process (able to gather funds in less than a day). SMEs do not need to provide collateral as part of the financing requirements, while interest percentages are minimised due to short financing tenures.
There are two types of financing provided by Funding Societies: Business Term Financing – Equal Installments of principal and interest (similar to hire purchase) and Invoice Financing – Immediate cash against sales invoice’s credit terms. SMEs can get the financing for the purpose of working capital needs, growth financing requirements, productive asset purchase (i.e. small capex).
Every SME registered in Malaysian be it a sole proprietor, partnership, private limited, unlisted public limited companies with minimum 12 months of operations, minimum annual revenue of RM300,000 and no pending or outstanding legal action bankruptcy settled for more than 24 months; litigation settled for more than 12 months, are eligible to apply for the financing facility.
Requirements
To get an invoice financing, there is an additional condition of a minimum 12 months of relationship with a minimum of six fully settled transactions with invoice debtors over the past 12 months.
The invoice debtor must be a Malaysian registered company operating for more than five years with a minimum annual revenue of RM3,000,000.
The invoice debtor also must also a be non-loss making company over last 2 years and bankruptcies settled more than 48 months prior to applying for financing.
Litigation, on the other hand, must be settled over 24 months ago.
To get investment, you will need to prepare the following documents:
| Business Term Financing (BTF) | Invoice Financing
(in addition to BTF criteria) |
| · Company registration documents;
· Latest Debtor/Creditor report; · NRIC of Directors; · Latest 6 months bank statement; · Latest Audited Accounts (2 years) & Management Accounts (1 year); and · Business Premise Tenancy Agreement; and · Latest business/operating license, if applicable |
·Copy of existing contract with Invoice Party (Client); · Copy/Copies of invoice(s) to be assigned for financing; · Copy of past 6 paid invoices & its corresponding payment record with the clients. |
For investors that signup with us now, we have a gift for you as a token of appreciation for growing together with us.
Please use the link https://goo.gl/Dbsnxs to sign up as investors to get the special bonus of RM50 for a minimum investment of RM1,000. We are looking forward to bringing in greater benefits and services to Cheng & Co’s clients as we move towards the future and enjoy success together.
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