Funding Societies*, an SME digital financing platform in Southeast Asia with presence in Singapore, Indonesia and Malaysia, Funding Societies has facilitated more than 1 million business loans to SMEs through a base of more than 150,000 individual and institutional investors in the last 4 years since inception in 2015. Funding Societies expanded its loan volume by 3 times in the last 12 month stating a default rate of 1.5%. Funding Society claims this to be the highest amount given out by any SME digital financing platform in Southeast Asia.
Funding Societies Founders Kelvin Teo and Reynold Wijaya
The growth in SME loans with Funding Societies is reflective of the increasing openness amongst businesses towards new generation funding options. As per the EY, UOB and Dun and Bradstreet report â€˜Asean SMEs – Are you transforming for the futureâ€™, 67.8% of the SMEs are now open to non-traditional lenders including lending platforms. Alternative financing providers like Funding Societies are addressing this segment by providing technology backed funding solutions for the growth of local businesses.
Kelvin Teo, Co-Founder and Group CEO of Funding Societies, commented, ‘What SMEs need is not subprime banking, but a different banking. Weâ€™re honored to have partnered with many SMEs in their growth journey. It hasnâ€™t been easy, as SME financing is a patient business. We hope to work even closer with SMEs in 2020, in line with our belief of â€˜stronger SMEs, stronger societiesâ€™ since 2015.’
Funding Societies specialises in all forms of short-term unsecured financing up to 2 million SGD, with funds disbursed as early as the next day. Funding Societiesâ€™ SME clients ranges from micro businesses and SMEs to small listed companies looking for working capital financing. For platform investors, the minimum amount is low starting from 20 SGD per investment. Other than individuals Funding Societies also has regulated financial institutions and funds who invest into loans on the platform.
Funding Societies is backed by Sequoia India and Softbank Ventures Asia Corp.