P2P operators offer SMEs deferment plans, refinancing programmes

Peer-to-peer (P2P) financing platforms that raised a combined RM632.28 million for small and medium enterprises (SMEs), as of the end of 2019, are coming out with various solutions to help these businesses weather the Covid-19 crisis. 

The four platforms that Enterprise reached out to have either deferred the principal repayments for SMEs on a case-by-case basis or are introducing refinancing products to help ease their cash flow.

Funding Societies Malaysia, the largest P2P platform operator, which has disbursed about RM500 million to about 1,200 SMEs in the past three years, is offering deferment plans to provide cash flow relief to SMEs, especially for those operating in sectors adversely affected by the implementation of the Movement Control Order (MCO).  

Wong Kah Meng, CEO of Modalku Ventures Sdn Bhd (the company that operates Funding Societies Malaysia), says these deferment plans allow SMEs to delay their principal repayments for three months or less. Businesses are only required to make interest payments to investors during that period. 

“This deferment is aimed at sustaining the SMEs’ businesses, which in turn will safeguard jobs, particularly with offline-focused retailers, wholesale traders and manufacturers involved in the import/export business. 

“It also covers companies involved in the construction of new projects as well as those in the tourism and hospitality business,” he adds.

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