Funding Societies has launched Elevate, a virtual card solution for SMEs in Singapore. The card is available on a credit line on the FinTech platform’s website and mobile app and entitles qualified SMEs to interest-free credit for a period of up to 55 days.
Unlike bank alternatives, no personal guarantees are required for limits under S$30,000. Funding Societies’ Elevate will close the 80 percent corporate credit card gap in the country’s SME sector, which currently sees many business directors take on personal liabilities on their own credit cards in order to unlock cash flow for the company.
This launch comes on the back of Funding Societies’ recent US$294 million Series C+ fundraise, some of which it has channelled to such new strategic products, solidifying its position as a one-stop shop for the region’s MSME banking needs.
Elevate, a free-to-apply credit line that comes with an opt-in virtual card, is enabled by Banking-as-a-Service provider, MatchMove, and developed in partnership with Mastercard. It offers small businesses rapid access to credit limits, where approvals of applications are given within one business day.
Business owners can easily apply for the card and credit line via Funding Societies’ website using Myinfo Business, and thereafter begin tracking and managing all expenditure within the platform’s dedicated mobile app. Elevate, an expense card for growing businesses, entails Mastercard privileges such as a Corporate Liability Waiver feature that protects SMEs against unauthorised charges being made to their business card accounts. This is in line with Funding Societies’ expansion into financial offerings for SMEs beyond lending, like expense management.
The introduction of Elevate comes at the right juncture as SMEs still face difficulties in obtaining a corporate credit card from traditional financial institutions due to their substantially lower spending and the need for customised credit terms, despite being the largest contributor to Singapore’s economy, comprising 99 percent of total enterprises and contributing 70 percent of total employment in 2020.
“In an environment where traditional providers issue corporate lines to only large businesses with a strong credit track record, or offer debit cards with deposit accounts, Funding Societies’ Elevate serves an urgent and important need of micro and small businesses in Singapore who need flexible credit to pay for their expenses.
“When business owners do not take on personal liability on their own credit cards, their business becomes more sustainable,” said Shrawan Saraogi, Funding Societies, group head of strategy, new business.
Funding Societies today serves more than 76,000 MSMEs across five countries in Southeast Asia – Singapore, Malaysia, Indonesia, Thailand, and Vietnam. To date, it has disbursed over S$2.8 billion in business financing through more than 5 million loans and is expanding into neobanking following its recent multi-million dollar fundraise.
According to an Impact study conducted by the Fintech platform using methodology by the Asian Development Bank, Funding Societies-backed MSMEs have created about 350,000 jobs across the region.
“Our SMEs are able to create such an impact on regional economies largely because we work with them to develop financing solutions they really need. This product is a business card designed specifically for SMEs to take their businesses to the next level,” continued Saraogi.
Furthermore, Elevate closes the loop for the 83 percent of MSMEs in Singapore who are increasingly digitising their operations, by compacting all company transactions and expenses onto a single-view online dashboard.
Since this financing solution launched in January, Funding Societies has approved over S$1 million in credit limits to small businesses across the nation. Within two months, almost one quarter of that limit has been used by its clients for company purchases and supplier payments. Elevate serves enterprises across all verticals, including the F&B, retail, e-commerce, logistics, and technology sectors.
SMEs interested in applying for Funding Societies’ Elevate virtual credit line and card can do so here: https://fundingsocieties.com/credit-line.