Alternative financing for SMEs
Kuala Lumpur, 28 March 2018 – The lack of business protection and capital constraints among Small and Medium Enterprises (SMEs) has been a concern for a while. To address this, AXA Affin General Insurance Berhad (AAGI) has joined hands with Peoplender Sdn. Bhd., a market operator licensed by the Securities Commission Malaysia to operate a peer-to-peer (P2P) financing platform known as Fundaztic.
AAGI offers SMEs flexible, affordable and trade specific protection to ensure their business continuity and sustainability, while Fundaztic supports their business funding needs through P2P financing by connecting them to mass retail investors.
According to Bank Negara Malaysia, SMEs are recognised as a critical component of the country’s economy contributing more than a third of gross domestic product (GDP) and providing job opportunities to more than four million workers in Malaysia.
“However, there is still a huge gap of financing for micro and small SMEs due to the size of their funding needs, internal banking policies, inability to provide the necessary collaterals required by banks and many other reasons. Funding is the key to drive growth and the lack of funding hampers the ability of many SMEs to scale their business,” said Kristine Ng, CEO, Fundaztic.
“Having AAGI on board is a promising support for the industry and believe our partnership will increase the visibility of P2P financing as an alternative funding vehicle among local SMEs,” she added.
“We know there are many underserved SMEs who are unprotected. They operate in a small or medium scale and do not usually take business protection as their priority,” said Rebecca Tan, chief marketing officer & bancassurance, AAGI.
“At AXA, we believe in empowering SMEs and providing them with complete peace of mind in their business ventures. We have gained insights on the SME industry, the insurance priority and mindset of SME owners to carefully identify their needs based on the specific trade they are operating in,” she added.
Fundaztic provides a fair and transparent online crowdfunding platform to all SSM registered SMEs, zero legal and documentation fees, fast and simple online application process and online acceptance of terms and conditions.
There are also no restrictions for purchase of motor vehicles as long as it is for the operation of the business.