Understand why digital financial solutions are important to keep small and medium businesses afloatPublished on 12 April 2022
Small and medium enterprises (SMEs) play a huge role in Malaysia’s economy. To paint a clearer picture, the SME sector contributes more than RM500 billion to the country’s gross domestic product (GDP).
However, the pandemic hit local SMEs hard in 2020 and many were affected by resultant lockdowns. On top of the government initiatives under Budget 2022 made available to SMEs in Malaysia, other organisations have also stepped up to offer financial assistance to SMEs in need.
It’s worth noting that the importance of digital transformation becomes evident during the pandemic, causing many industries to move online. Major financing institutions have digitised their processes which makes it easier and faster for SMEs to secure funding.
Enter the exciting world of digital financing solutions
The use of online financial services isn’t a foreign concept that was born during the pandemic. Regular consumers have been utilising digital channels to pay their bills and even apply for loans. According to APAC Personal Financial Services Survey 2021, 90% of Malaysian consumers use digital banking at least once a month compared to 62% during 2017, and 62% are using fintech or e-wallet services compared to 15% in 2017.
Business owners have also been actively using online financing due to its convenience. Online financing reduces paperwork and promotes quicker turnaround time. The best part? Financial institutions and organisations can customise their offerings to finance specific needs.
As a provider of digital solutions, Yellow Pages Malaysia fully understands the struggles faced by SMEs with regard to obtaining financing. To underscore its commitment to continue supporting local SMEs in these turbulent times, Yellow Pages has formed a partnership with Funding Societies, Southeast Asia and Malaysia’s largest SME digital financing platform.
Yellow Pages x Funding Societies partnership provides business financing solutions to eligible brands and businesses. Their collaboration delivers plenty of benefits for SMEs. For instance, no amount is too low when it comes to financing applications. It can be as little as RM3,000 or RM300,000 if it fulfils your company’s needs.
This financing programme also offers flexibility and a seamless online process. Furthermore, to make things easier, the approval process has been cut down from several weeks to a matter of days. You don’t need to worry about having collateral as the focus of this initiative is your business potential rather than your assets.
To facilitate quick disbursement, the application process is designed to be less complicated for SMEs. They can simply register online, follow prompts to upload information, and apply for financing. This hassle-free application indicates that digitisation lowers the overall process cost and improves the approval rate because financing solution providers have more data to validate applications.
If you’re looking for financial solutions to drive your business forward, check out Yellow Pages Financing for further details.