JAKARTA - Funding Societies (also known as Modalku in Indonesia), Southeast Asia’s SME digital financing platform, is now live in Thailand. On Feb 2nd, 2021, it was awarded the Securities and Exchange Commission (SEC) debt crowdfunding license.
With this license, Funding Societies will be able to support Thai SMEs and startups in raising funds from retail and institutional lenders. The company is committed to providing access to investing to average lenders while also giving entrepreneurs access to alternative capital providers.
"SMEs contribute over 40% of Thai GDP but face numerous challenges in accessing finance from traditional sources due to lack of collateral, onerous document requirements and lengthy approval processes" says Varun Bhandari, Country Head of Funding Societies Thailand. “By leveraging technology, Funding Societies offers SMEs a new avenue for raising financing that is fast, affordable and convenient. Thai lenders will also get an opportunity to diversify their investments and earn attractive fixed income returns, while supporting local businesses and brands.”
Funding Societies offers a range of collateral-free financing to help SMEs with their business expansion, working capital needs, or up-front project costs. Enabled by our proprietary technology, SMEs can fill out an easy online application, submit basic documents, and receive an approval within three days. The company has also established regional partnerships with companies such as Lazada, Zilingo and CIMB Bank, thus serving SMEs within their ecosystem.
Thai lenders will soon be able to log in to the Funding Societies crowdfunding platform and have a range of debt investment opportunities at their fingertips. Crowdfunding bonds offer diversification benefits and can help enhance overall portfolio returns. Funding Societies’ strong risk management capabilities have restricted defaults to below 2%, even through the Covid-19 pandemic. With the debt crowdfunding license issued by the Securities and Exchange Commission, it will now bring its platform to Thailand to empower Thai SMEs and lenders. (LM)