CYBERJAYA: Fintech startup Pantas has partnered with Southeast Asia's SME digital financing platform, Funding Societies, to launch an industry leading pre-approved automated invoice financing facility for small and medium enterprises (SMEs) in Malaysia.
The partnership aims to provide SMEs with an easily accessible financial safety net.
"As the lead digital economy agency in Malaysia, Malaysia Digital Economy Corporation (MDEC) lauds this partnership between Pantas and Funding Societies. The introduction of this innovative and industry-leading digital solution will prove valuable for SMEs, which form the economic backbone of Malaysia. The pre-approved financing will further drive digital adoption among SMEs and propel Malaysia as a leading digital nation," said MDEC CEO, Mahadhir Aziz.
Leveraging on Pantas' and Funding Societies' proprietary data and algorithms, SMEs are automatically pre-approved for invoice financing facility via Pantas' free e-invoicing software.
The solution will reduce the time spent on the end-to-end invoice financing process (from facility approval to money in the bank account) to as little as two business days, as compared to the industry standard of several weeks whilst offering competitive interest rates.
The pre-approved financing is there for the SMEs when they need it, but they are under no obligation to use it. However, if they decide to use it, the service allows SMEs to obtain a higher pre-approved limit by transacting more on Pantas.
"Every business deserves to have a financial safety net for the rainy days. The pre-approved financing will provide SMEs with seamless access to working capital and alleviate cash flow constraints. Businesses that utilise Pantas' free software to digitise their billing, invoicing, and payment process will automatically gain access to the pre-approved financing facility," said Pantas' co-founder and CEO, Max Lee adding that the partnership enables Pantas to extend their reach to the underserved SMEs who would benefit greatly from these solutions.
Funding Societies Malaysia's co-founder and CEO, Wong Kah Meng, in a statement, said that cash flow management is very important for businesses in order to ensure profitability and sustainability and since its introduction, the invoice financing products have helped SMEs to optimise cash flow as well as other issues including eliminate long-due invoices concern, access liquidity, and improve working capital performance.
"We are pleased to form this partnership with Pantas that would enhance both the choices and the speed at which financing solutions will be offered to underserved SMEs."
Pantas has also partnered with MDEC to be a part of their flagship SME Digital Accelerator programme. The programme was created to assist Malaysian SMEs by providing a structured approach to adopting digitalisation.
"Our partnership with Pantas for the SME Digital Accelerator programme is a testament to the continuous support MDEC has provided to grow and catalyse the digital economy ecosystem in Malaysia. While 98.5 per cent of all businesses in Malaysia are SMEs, the World Bank states that digital adoption among them is still lagging compared to larger enterprises. MDEC, along with partners like Pantas, will continue to step up to ensure
Malaysia stays a globally competitive digital nation," added Mahadhir.