Deskera, Asia’s leading Cloud-based platform, and Funding Societies, Southeast Asia’s largest Peer-to-Peer (P2P) financing platform, is entering into a partnership with the aim to support underserved SMEs by providing alternative financing solutions. With the two organisations working together, SMEs will also be able to take a step into the digitisation of financing. In using such digital methods, businesses are able to apply for funds without the inconvenience of paperwork. This partnership will be the first of its kind, where one of the largest P2P financing platform (in the region), and Asia’s leading cloud-based platform will come together to provide innovative financing solutions for small and medium enterprises (SMEs) in Singapore to optimise their cash flow.
For SMEs, cash flow is a constant concern. In particular, 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. According to the 2018 SME Development Survey conducted by DP Information Group (now known as Experian), 34% of SMEs were facing external finance-related challenges, of which a staggering 84% of these SMEs quoted delayed payments from customers as the key finance-related issue. Additionally, smaller and younger SMEs lack assets and capital, and therefore often face challenges in obtaining funding from banks and financial institutions compared to their larger counterparts.
The push for partnerships and a stronger economy in Singapore has encouraged Deskera and Funding Societies to collaboratively join forces and provide a better funding solution to help enhance the growth of SMEs. This partnership will provide a fast and effective financial solution that many SMEs are seeking as a way for their businesses to strive. Deskera’s platform will incorporate Funding Societies’ Invoice Financing feature, whereby 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 SGD1 million with funds disbursed as early as within 5 days. Funding Societies’ SME clientele ranges from startups, micro-SMEs, to listed companies looking for short to medium term financing.
On this partnership, Shashank Dixit, CEO, 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. This partnership makes the entire process a lot easier and safer for SMEs.
Deskera’s cloud-based product suite will provide extensive integration with Funding Societies’ platform. The platform 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 uses 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.
Kelvin Teo, CEO and co-founder of Funding Societies said, “We’re excited to partner with Deskera who share the same mission of serving SMEs. By integrating our financing solution into the SME ecosystem, we hope SMEs will enjoy faster and more seamless financing to fuel their growth.”