FUNDING Societies Malaysia is entering a strategic partnership with foodpanda to offer short-term digital financing solutions for about 30,000 registered merchants under the foodpanda network.
The collaboration has collectively disbursed RM1 mil in financing, enabling local micro, small and medium enterprises (MSMEs) to facilitate common business operation needs, business expansions and ensure sustainability through the pandemic-hit economy.
“Our partnership with foodpanda enables the merchants under its large network to obtain collateral-free, short-term financing solutions with the added benefits of quick and seamless online application experience,” Funding Societies Malaysia CEO and co-founder Wong Kah Meng explained.
He added that the RM1 mil disbursement that has been given so far is a testament of the MSMEs’ confidence in digital financing being a viable financing option.
Meanwhile, foodpanda managing director Sayantan Das admitted that the partnership established with Funding Societies was just the push that was needed to help foodpanda’s vendors.
“The feedback received from our vendors to date has been nothing but positive and we are delighted to have been able to play a small part in their success story,” Sayantan said.
In Malaysia, the digital financing option is becoming more prevalent due to its ability to address common pain points revolving around the traditional financing application process, such as collateral requirement, arduous documentation requirement and slow processing time.
With those requirements being some of the biggest setbacks for MSMEs to apply for financing aid from traditional banks, it is no wonder that digital financing is gaining traction among these underserved groups.
Eligible merchants under the foodpanda network will be able to enjoy the following financing benefits from Funding Societies:
- Full online application experience
- Minimal documentation requirement
- Fast disbursement with approval as fast as within three (3) working days
- Flexible tenure between of up to 18 months
- No collateral requirement
As part of the partnership, Funding Societies is also offering one of its newest products, the Micro Credit Line, to eligible foodpanda merchants. The Micro Credit Line facility enables MSMEs to draw
a short credit period of between 30 days to 90 days at any given time that can be used for a variety of business purposes such as inventory purchase, payment to suppliers, or as an emergency fund. – May 28, 2021
