Deskera and Funding Societies are entering into a partnership to support underserved SMEs by providing alternative financing solutions.
Asia’s leading cloud-based platform is working together with Southeast Asia’s largest Peer-to-Peer (P2P) financing platform so SMEs can apply for funds without the inconvenience of paperwork.
It will be a “fast and effective financial solution” for businesses, the statement read.
Deskera’s platform will incorporate Funding Societies’ Invoice Financing feature, where B2B SMEs will be able to pledge their invoices through an automated system and release funding in advance, rescinding their cash flow constraints.
Funding Societies Invoice Financing product provides SMEs fast and customisable financing of up to S$1 million with funds disbursed as early as within five days.
Both products will be integrated onto a platform that digitises and simplifies the process for businesses by linking information, users, and various processes to gain business productivity.
With the consent from Deskera’s customers, Funding Societies will use this information as one of the inputs in their proprietary scoring model to approve loans and help SMEs gain access to quick financing to facilitate cash flow.
Funding Societies’ SME clientele ranges from startups, micro-SMEs, to listed companies looking for short to medium term financing.
Noting that cash flow is important for SMEs, this first-of-its-kind partnership will provide innovative financing solutions for SMEs in Singapore to optimise their cash flow.
The statement highlighted that SMEs in the B2B sector face a cash flow crunch with payment terms between 30 and 90 days where there are delays beyond that as well.
34% of SMEs were facing external finance-related challenges, of which 84% of these SMEs quoted delayed payments from customers as the key finance-related issue, according to a 2018 SME Development Survey conducted by DP Information Group (now known as Experian).
On top of that, as smaller and younger SMEs lack assets and capital, it’s a challenge for them to obtain funding from banks and financial institutions compared to their larger counterparts.
Shashank Dixit, CEO of Deskera, said, “SMEs are in a transformative phase with evolved financial needs. Therefore, it is imperative for funding/financial lenders to evolve accordingly.”
“Our goal is to help SMEs gain smooth access to the required capital as per their business growth.”
Kelvin Teo, CEO and co-founder of Funding Societies, said, “By integrating our financing solution into the SME ecosystem, we hope SMEs will enjoy faster and more seamless financing to fuel their growth.”
Featured Image Credit: Tech In Asia, Nikkei Asian Review