Small and medium-sized business (SMB) financing platform Funding Societies announced that it has teamed up with CGC Digital, the Fintech division of Credit Guarantee Corporation Malaysia (CGC) in order to support MSMEs operating across the Southeast Asian nation.
Via this collaboration, CGC Digital created a new digital credit guarantee product for CGC, which will be provided for financing as much as RM4 million (to start with).
This aims to benefit around 100 creditworthy micro and small enterprises in the country through Funding Societies’ supply chain financing service, taking advantage of alternative data for MSMEs’ credit risk assessment.
This update comes after Funding Societies signed an MoU with CGC back in April for an RM10 million SME Portfolio Guarantee scheme that aims to support business expansion efforts for SMBs.
Wong Kah Meng, Group Chief Operating Officer, Funding Societies | Modalku, stated:
“Following our entry into the SME Portfolio guarantee program of CGC in April this year, we are fortifying this collaboration with CGC Digital. The digital-first approach leverages alternative data, enabling MSMEs with broader and more affordable access of MSMEs to digital guarantee and transformative financing. CGC Digital’s innovation of CGC’s credit guarantee would mitigate risk for investors and reduce cost of financing for MSMEs. Combining it with our industry playbook for fast-moving consumer goods (FMCG), agriculture, telecommunications, and wholesale and retail trade segments, we would be able to serve more micro and small enterprises that make up these industry segments.”
Yushida Husin, Chief Executive Officer, CGC Digital, remarked:
“This MoU signifies our mutual dedication to fostering innovation and co-creating value with MSMEs. CGC Digital seeks to provide MSMEs with a one-stop digital marketplace for better access to finance and more targeted assistance to scale up. Given this, we are committed to collaborating with like-minded strategic partners in the digital ecosystem to accelerate financial inclusion of MSMEs in Malaysia.”