Finaxar, a Monk’s Hill Ventures-backed fintech lending company, Indovina Bank and Cathay Financial Holdings on Thursday announced a partnership to improve access to financing for small and medium enterprises (SMEs) in Vietnam where SMEs comprise 96-98 per cent of total enterprises.
The partnership aims to provide working capital to SMEs in an easier and streamlined manner.
“In our experience, small businesses in Vietnam face random demand fluctuations which require them to possess some form of capital flexibility. This is where the Finaxar Credit Line (FCL) comes in. FCL is part of Finaxar’s reinvention of traditional business financing to accommodate and support the growth of SMEs in the 21st century,” said Finaxar co-founder Vihang Patel.
FCL is an online, automated credit financing solution specifically tailored for Vietnam’s SMEs. Business owners can now access funds of up to VND500 million ($22,000) through FCL.
In contrast to traditional financing, FCL uses a simple model, charging a single percentage fee up front on the loan amount, with no hidden or processing charges. In-principle credit approval can be granted within 30 minutes of an online application.
Finaxar claims to offer innovative, data-driven financing solutions tailored to SMEs in Southeast Asia.
Headquartered in Singapore and operating in Vietnam and Hong Kong, the firm is backed by Monk’s Hill Ventures, 500 Startups, Cathay Ventures – the venture arm of Cathay Holdings, alternative asset funds and leading family offices from Singapore, USA, and Europe.
Cathay Financial Holdings is one of the largest financial holding companies in Taiwan. The company’s primary subsidiaries include Cathay Life Insurance, Cathay United Bank, Cathay Century Insurance, Cathay Securities Investment Trust and Cathay Securities. As of March 31, 2019, the company had total assets of over $309 billion and over 13 million customers.
