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Banking & Finance

Indovina Bank, Cathay Holdings & Finaxar partner in SME financing

Released at: 14:46, 19/07/2019

Indovina Bank, Cathay Holdings & Finaxar partner in SME financing

Photo: Finaxar

New cooperation to provide SMEs in Vietnam with access to financing.

by Hong Nhung

Indovina Bank, Cathay Financial Holdings, and tech firm Finaxar Vietnam announced on July 18 a partnership to improve access to financing for small and medium-sized enterprises (SMEs) in Vietnam.

The partnership will provide working capital to SMEs that are growing quickly in the region with easier, more streamlined access to credit online through Indovina Bank’s FCL credit line product, powered by Finaxar. SMEs currently account for 96-98 per cent of all enterprises in Vietnam but up to 60 per cent remain unable to access credit to fuel their growth.

“In our experience, small businesses in Vietnam face random demand fluctuations that require they possess some form of capital flexibility,” said Mr. Vihang Patel, Co-founder of Finaxar. “This is where the Finaxar Credit Line (FCL) comes in. FCL is part of Finaxar’s reinvention of traditional business financing to accommodate and support the growth of SMEs in the 21st century.”

FCL is a first-in-region, completely online, automated credit financing solution specifically tailored for Vietnam’s SMEs.

Business owners can access funds of up to $22,000 through FCL online. In contrast to traditional financing, FCL uses a simple model and charges a single percentage fee upfront on the loan amount, with no hidden or processing charges. In-principle credit approval can be granted within 30 minutes of an online application being made.

“Our mission is to bring a full suite of innovative products on to the market to reinvent how business finance for small businesses is done and to address the pain point of access to financing for SMEs,” said Dr. Sian W. Tan, Co-founder of Finaxar.

Specifically designed to work around such difficulties in accessing credit, FCL does not require business owners provide any collateral and gives them flexibility in their repayment schedules. It allows owners to grow their businesses in various ways, including procuring inventory and boosting general business expansion.

“We care about Vietnam’s people and how SMEs are being financed for business growth,” said Mr. Marcus Lopez, Executive Vice President and Head of Digital, Data and Technology, at Cathay Financial Holdings, an investor in both IVB and Finaxar.

“Powered by IVB/Cathay’s sophisticated data analytics modelling and tools, plus innovative financing solutions backed by IT infrastructure and API platforms, we are pleased to partner with Finaxar to offer tailor-made products and services to unbanked local clients and customers. With 214 offshore offices worldwide as well as intensive footprints in Asia-Pacific markets, we are open to all possibilities to collaborate, creating even more exciting business benefits in the region.”

Headquartered in Singapore, Finaxar provides innovative, data-driven financing solutions tailored to SMEs in Southeast Asia. Its mission is to change how financing is done for these enterprises. It is backed by Monk’s Hill Ventures, 500 Startups, Cathay Ventures - the venture arm of Cathay Holdings, alternative asset funds, and leading family offices from Singapore, the US, and Europe.

Cathay Financial Holdings is the largest financial holding company in Taiwan. Its primary subsidiaries include Cathay Life Insurance, Cathay United Bank, Cathay Century Insurance, Cathay Securities Investment Trust, and Cathay Securities.

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