The new partnership will provide SMEs access to financing in Vietnam, where SMEs today account for 96-98% of all enterprises
The partnership will leverage IVB and Cathay’s data analytics modelling and tools, Indovina Bank’s FCL credit line, in addition to Finaxar’s innovative SME credit solutions
Finaxar’s SME credit solutions is the first-of-its-kind, completely online and automated credit financing solution, providing access of funds up to 500 million VND (22,000 USD)
Finaxar VN, Indovina Bank and Cathay Financial Holdings on Thursday, July 18, 2019 announced its partnership to improve access to financing for small and medium enterprises (SMEs) in Vietnam.
The partnership will provide working capital to SMEs that are growing fast in the region with easier, more streamlined access to credit online through Indovina Bank’s FCL credit line product powered by FinaxarTM. Today, SMEs comprise 96-98% of enterprises operating in Vietnam, but up to 60% are still unable to access credit to fuel their growth.
“In our experience, small businesses in Vietnam face random demand fluctuations which require them to possess some form of capital flexibility. 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,” said Finaxar co-founder Vihang Patel.
FCL is a first-in-region, completely online, automated credit financing solution specifically tailored for Vietnam’s SMEs.
Business owners can now access funds of up to 500 Million VND (22,000 USD) through FCL easily online. In contrast to traditional financing, FCL uses a simple model, charging 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.
“Our mission is to bring a full suite of innovative products into the market to reinvent how business finance for small businesses are done and to address the pain point of access to financing for SMEs,” said Finaxar’s co-founder Dr. Sian W. Tan.
Specifically designed to work around such difficulties in accessing credit, FCL does not require business owners to provide any collateral and gives business owners flexibility in their repayment schedules. FCL 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 Marcus Lopez, Executive Vice President and Head of Digital, Data and Technology at Cathay Financial Holdings, investor to 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 offering tailor made products and services to unbanked local clients and customers. With 214 offshore office worldwide as well as intensive footprints in Asia-Pacific markets, we are open to all possibilities to collaborate creating even more exciting business benefits to this region,” said Mr. Lopez.