GAMING hardware and software firm Razer is teaming up with Funding Societies, a digital crowdfunding platform for merchant loans, to provide short-term business financing to merchants.
More than 20,000 micro, small and medium enterprises will be connected to Funding Societies’ financing solutions via Razer Merchant Services, a business-to-business fintech platform. The solutions will first be rolled out in Malaysia, where most users of Razer’s merchant services are, followed by the rest of South-east Asia.
The move comes amid a rise in demand for loan relief during the pandemic. An EY survey published in June, which detailed the impact of the pandemic on Malaysian businesses, found that nearly half of the 670 companies surveyed urged government aid and incentives such as loan relief to cope with business operations.
Under Razer and Funding Societies’ partnership, eligible merchants will have access to quick and tailor-made short-term financing. This is meant to help them meet business needs such as cyclical cash flow gaps, urgent project expenses and unforeseen one-off expenses, and to overcome seasonal revenue fluctuations, said both companies.
There will be a waiver of the retention sum, no collateral required, minimal documentation and a flexible tenure of six to 18 months. Disbursement of the loans is expected to be quick, with approval happening within three to five working days.
Both Razer and Funding Societies have applied for digital banking licences in Singapore, but with different consortia.
Razer is leading an application for a full bank licence with Sheng Siong’s founders, insurance business FWD, Internet company LinkSure Global, Singaporean technology venture fund Insignia Ventures Partners and vehicle wholesale marketplace Carro.
Funding Societies is part of a pack led by Hong Kong financial services group AMTD and comprising Xiaomi and utilities provider SP Group.