FUNDING SOCIETIES, CURLEC TEAM UP
Direct Debit system to ease SMEs’ repayment process, says CEO
FUNDING Societies, the first and largest peer-topeer (P2P) financing platform in Malaysia, has partnered with financial technology company Curlec, which specialises in direct debit payments.
Through this partnership, repayment process for Funding Societies’ small and medium enterprises (SME) clients will be automated using Curlec’s Direct Debit integrated system, thus boosting customer efficiency and lowering processing time.
Funding Societies’ SME clients will have a choice to get rid of their cheques and paperwork to process their repayments as most repayment methods require clunky software and sizeable teams to manage the operational process.
Curlec’s Direct Debit system saves cost and minimises operational complexity.
Local SMEs will also benefit from a hassle-free customer experience when performing monthly repayments.
“We are proud to be the first P2P financing platform to use an online Direct Debit system for our SME users. Curlec’s system offers an option to automate SMEs’ repayment.
“With an efficient and practical process like this, we hope to enhance customer experience. If they no longer need to process paperwork for every repayment, our users can focus more on developing their businesses,” said Funding Societies Malaysia chief executive officer Wong Kah Meng.
Curlec co-founder and chief executive officer Zac Liew said he was delighted to be working with Funding Societies.
“Funding Societies will offer Curlec’s Direct Debit system for SMEs as an additional repayment method, and our Instant Pay FPX payment gateway for investor deposits.
“It is a great opportunity to collaborate with another local fintech company which is committed to supporting SME businesses. We share the same goal — to serve SMEs underserved by existing financial institutions.”
According to estimates by the Securities Commission, the local SME sector has a financing gap of more than RM80 billion but yet comprises 97 per cent of businesses and contributes 65 per cent to national employment.
Market-based, technologydriven financing options such as Funding Societies can provide alternative solutions to address the needs of local SMEs.
Funding Societies Malaysia holds the largest local market share in terms of crowdfunded amount.
The platform also holds a zero per cent default rate since it started operations.
“With Curlec’s automation technology, Funding Societies hopes to scale our business faster and more efficiently to achieve our goal of RM50 million in SME financing this year.
“We want to serve more underserved SMEs which require financing,” added Wong.
Funding Societies connects SMEs with investors through an online marketplace, thus increasing access to financing for the SME sector.
By financing SMEs, investors can earn returns up to 14 per cent per year, higher than fixed deposits, bonds and other traditional instruments.
SMEs also can obtain up to RM500,000 in working capital financing to expand their businesses through a fast and simple online-based process.