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Staff Reporter

, Singapore

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4 years ago

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Regina Lee, Head of Commercial Banking, HSBC Singapore; [Right] Kelvin Teo, Co-founder and Group CEO, Funding Societies | Modalku

Financing platform Funding Societies clinches US$50m loan with HSBC SG

It will use the money to extend more loans to SMEs in Southeast Asia.

Funding Societies, a digital financial platform for small and medium enterprises (SMEs), has signed a US$50m credit facility with HSBC Singapore.

The platform plans to use the money to expand its reach and serve more SMEs in Southeast Asia.

Prior to the loan, Funding Societies said that it has already disbursed of over US$2.6b through more than 5.1 million transactions in SEA.

The new facility will enable them to channel more funds to its tailored financing solutions across SME segments across all of the five markets it is currently active in.

ALSO READ: HSBC profit after tax rose to $9.2b in H1

Along with the loan, HSBC will act as the structuring bank, lender, facility and security agent to support Funding Societies’ business expansion.

Commercial lending in Asia Pacific is projected to grow at a CAGR of 16.5%, generating a revenue of more than US$7t by 2028, according to data from Indian analytics firm ResearchDive. This makes up about 25% of the expected global market size of US$27t.

Meanwhile, SMEs make up 97% of all enterprises in SEA, bringing 40% of GDP value across the region. In Singapore, the Department of Statistics reported that 99% of enterprises in country are SMEs – contributing to 44% of the nominal value added at approximately S$212b.

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