Singapore-headquartered cloud-based platform Deskera has partnered with peer-to-peer (P2P) lender Funding Societies, popularly known as Modalku in Indonesia, to support SMEs in Southeast Asia by providing them an alternative financing solution.
The partnership will enable SMEs to digitize their financing process, and help them apply for funding rather seamlessly without the hassle of paperwork. Besides, the partnership will also provide SMEs in Singapore an alternative funding scheme to optimise their cash flow.
Further, Funding Societies’ ‘Invoice Financing’ service will help B2B SMEs process their invoices through an automated system and release funding in advance, that will help manage their cashflow constraints.
The ‘Invoice Financing’ feature claims to provide SMEs fast and customized financing up to S$1 million, with funds disbursed as early as 5 days.
Softbank Asia Ventures and Sequoia India-backed Funding Societies’ SME clients include startups, micro-SMEs and publicly-listed companies looking for short to medium-term financing.
“The platform digitizes and simplifies the process for businesses by linking information, users, and various processes to gain business productivity. This partnership will provide a fast and effective financial solution that many SMEs are seeking as a way for their businesses to strive,” Deskera chief executive Shashank Dixit said in a statement.
SMEs often face financing constraints, particularly in terms of their cash flow as payment disbursement typically takes 30-90 days.
According to a research conducted by consumer credit rating company Experian, at least 34 per cent SMEs are facing external finance-related hurdles, of which around 84 per cent have delayed their payments, citing finance-related issue.
Deskera, in the past, has partnered with a slew of organizations, government agencies, and educational institutions to support their businesses, using a built-in cloud product and technology. The company also empowers firms to ease access to their accounting information, finances, projects, payrolls, customers and logistics.
Meanwhile, Funding Societies has been empowering SMEs in the region by creating a crowdfunding scheme, in which high-net-worth individuals and companies can help finance SME businesses.
In the past four years, the company has disbursed financing to at least 500,000 SME, with $600 million in total funds.