Finaxar Vietnam, Indovina Bank and Cathay Financial Holdings on July 18 announce a partnership to improve access to financing for small and medium enterprises (SMEs) in Vietnam. (Photo: Finaxar)Hanoi (VNS/VNA) - Finaxar Vietnam, Indovina Bank and Cathay Financial Holdings have announceda partnership to improve access to financing for small and medium enterprises(SMEs) in Vietnam.
The partnership will provide working capital for SMEs that are growing fast inthe region. SMEs comprise 96-98 percent of enterprises operating in Vietnam,but up to 60 percent are still unable to access credit to fuel their growth.
“Inour experience, small businesses in Vietnam face random demand fluctuationswhich require them to possess some form of capital flexibility. This is wherethe Finaxar Credit Line (FCL) comes in. FCL is part of Finaxar’s reinvention oftraditional business financing to accommodate and support the growth of SMEs inthe 21st century,” said Finaxar co-founder Vihang Patel.
FCL is a first-in-region, completely online, automated credit financingsolution specifically tailored for Vietnam’s SMEs.
Business owners can now access funds of up to 500 million VND (US$22,000)through FCL easily online. In contrast to traditional financing, FCL uses asimple model, charging a single percentage fee upfront on the loan amount, withno hidden or processing charges. In-principle credit approval can be grantedwithin 30 minutes of an online application.
“Our mission is to bring a full suite of innovative products into the market toreinvent how business finance for small businesses is done and to address thepain point of access to financing for SMEs,” said Finaxar’s co-founder Dr. SianWee Tan.
Specifically designed to work around such difficulties in accessing credit, FCLdoes not require business owners to provide any collateral and gives businessowners flexibility in their repayment schedules. FCL allows owners to growtheir businesses in various ways, including procuring inventory and boostinggeneral business expansion.
“We care about Vietnam’s people and how SMEs are being financed for businessgrowth,” said Marcus Lopez, Executive Vice President and Head of Digital, Dataand Technology at Cathay Financial Holdings, investor to both IVB and Finaxar.
“With 214 offshore office worldwide as well as intensive footprints inAsia-Pacific markets, we are open to all possibilities to collaborate creatingeven more exciting business benefits to this region,” said Lopez.
Finaxar, headquartered in Singapore and operating in Vietnam and Hong Kong, isa technology company that provides innovative, data-driven financing solutionstailored to SMEs in Southeast Asia.- VNS/VNA
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