Funding Societies collaborates with CGC to introduce SME Portfolio Guarantee for enhanced digital financing accessibility of Malaysian SMEs.

Funding Societies, a digital finance platform for small and medium enterprises (SMEs) based in Singapore, has joined forces with Credit Guarantee Corporation Malaysia Berhad (CGC) to sign an agreement that aims to help Malaysian SMEs grow by providing them with better access to finance. This agreement is called the SME Portfolio Guarantee (SME PG).

On Friday, Funding Societies and CGC released a joint statement announcing their partnership to help underserved and unserved but creditworthy micro, small, and medium-sized enterprises (MSMEs) through digital financing solutions. The first financing tranche for up to MYR10 million ($2.27 million) will be extended under the SME Portfolio Guarantee Scheme.

This partnership is the initial strategic alliance between CGC and a small to medium enterprise digital funding platform.

This program allows small and medium-sized businesses that meet the criteria to request a loan ranging from MYR50,000 ($11358) to MYR500,000 ($113,585).

Small and medium-sized enterprises (SMEs) that meet the requirements for the SME PG can receive extended funding with lower interest rates that are the most favorable compared to similar financing options from Funding Societies. This can help alleviate their monthly financial burdens as they expand their businesses, especially during the current post-pandemic period.

which will provide crucial access to funding for small and medium-sized businesses. This partnership allows us to continue supporting the growth and success of SMEs, which are the backbone of our economy. We look forward to working closely with CGC to make financing options more accessible and flexible for these vital businesses.” It is great news that we have reinforced our alliance with CGC through the SME Portfolio Guarantee agreement. This will enable small and medium-sized enterprises to get the necessary funding they need. Supporting the growth and triumph of SMEs is significant since they are the foundation of our economy. We anticipate working in close collaboration with CGC to make financing choices more obtainable and accommodating for these indispensable operations.

Kelvin Teo, the Co-founder and Group Chief Executive Officer of Funding Societies | Modalku, affirmed that the implementation of PG would offer broader opportunities for financing facilities to SMEs that are ignored and segregated in Malaysia, which is our prime market.

He believes that small and medium-sized businesses (SMEs) might have a profitable strategy but do not have the necessary assets to secure funds through conventional funding sources.

Our funding would assist small and medium enterprises with the ability to either grow and diversify their businesses or maintain their current operations. It is especially crucial as these enterprises increase their resilience and rebuild post-Covid.

He stated that the SME PG decreases the likelihood of SMEs failing to pay back their loans, which is beneficial for our investors.

Funding Societies | Modalku stands as the biggest, combined SME digital finance platform found in Southeast Asia.

The company is officially recorded with the Securities Commission Malaysia (SC) and has obtained permits to operate in Singapore, Indonesia, and Thailand. Additionally, they are running their business activities in Vietnam.

SoftBank Vision Fund 2, SoftBank Ventures Asia, Sequoia Capital India, Alpha JWC Ventures, SMBC Bank, Samsung Ventures, BRI Ventures, Endeavor, SGInnovate, Qualgro, and Golden Gate Ventures are among the supporters.

The company specializing in financial technology offers financing options to small- and medium-sized enterprises. The funds are sourced from both personal and organizational investors.

Over the span of eight years, it has successfully facilitated the financing of more than 5 million business transactions, resulting in funding amounts totaling MYR13.39 billion ($3.04 billion).

On July 5th, 1972, CGC was founded. The Malaysian Central Bank holds a majority ownership of 78.65%, while the remaining 21.35% is owned by commercial banks in Malaysia.

The goal of CGC is to help smaller businesses (MSMEs) that don't have enough collateral or good track records secure loans from banks. They do this by providing guarantee cover on those loans.

Since its inception, CGC has provided more than 522,075 guarantees and funding to MSMEs worth more than MYR90 billion ($20.45 billion) as of December 2022.

CGC revealed imSME on February 9th, 2018, which is considered to be Malaysia's initial platform for SME online financing and loan recommendations.

The imSME provides MSMEs with another option to find financing products, which helps them save time and avoids the inconvenience of dealing with lengthy procedures.

Since it first started until December 2022, the imSME website has been visited over 2.41 million times and currently has over 66,608 MSMEs registered.

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