Razer Fintech, an offline-to-online (O2O) services provider decided to collaborate with Funding Societies in Asia to provide short-term financing services to small businesses.
Razer’s Merchant Services (RMS), supported by Funding Societies’ large client-base will rescue, businesses that have been hit by the Covid-19 pandemic.
Reportedly, more than 20,000 Malaysian businesses will be connected to Funding Societies to avail their financial solutions. Importantly, the tech is backed by Razer Fintech’s Merchant Services.
Anticipatedly, Razer Fintech is prepared to provide short term financing services to businesses to solve problems of cyclical cash flow gaps, urgent project expenses, unforeseen one-off expenses, seasonal revenue fluctuations.
To help small businesses stay on their feet, Funding Societies plans to introduce an entirely new credit line. The line will enable MSMEs to draw a short term credit lasting 45-90 days.
MSMEs in dire need of assistance
According to a June 2020 survey by Ernst & Young, nearly 85% of all Malaysian MSMEs faced a major challenge in accessing connectivity. This could be attributed to network congestion caused by the coronavirus pandemic.
Also, more than 600 businesses were desperate for any sort of financing to keep operations going.
Retailers, Food-Beverage vendors, and online merchants are expected to be among the first beneficiaries of the Razer Merchant Services’ short-term credit, which will take off in the coming weeks.
Razer Fintech CEO Lee Li Meng spoke about partnering with Funding Societies Malaysia on this project, “We leverage their extensive P2P financing platform to further grow our fintech offerings and digital payments ecosystem for our RMS merchants in Malaysia”.
He continued, “We have established a strong market position in Malaysia and now, we are excited to expand our capabilities, together with Funding Societies Malaysia to support the underserved MSMEs by offering them access to more seamless financial solutions as they grow their businesses”.