{"id":31109,"date":"2017-09-11T13:20:52","date_gmt":"2017-09-11T05:20:52","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=31109"},"modified":"2024-12-03T17:30:14","modified_gmt":"2024-12-03T09:30:14","slug":"p2p-lending-investing","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/p2p-lending-investing","title":{"rendered":"Is P2P Lending Set To Disrupt Funding and Investing In The Country?"},"content":{"rendered":"

\"fundaztic\"<\/p>\n

The small and medium enterprises (SMEs) make the Malaysian economy. According to the World Bank<\/em><\/a>, 97% of business establishments in Malaysia are made up of SMEs. These businesses contributed nearly 36% of the country\u2019s GDP, 65% of the country\u2019s employment, and nearly 18% of Malaysia\u2019s exports.<\/p>\n

When Securities Commission chairman Tan Sri Ranjit Ajit Singh said that Malaysian SMEs are facing a financing gap of RM80 billion<\/a>, this could potentially pose a problem to the country\u2019s economic growth.<\/p>\n

In the current landscape, SMEs have to apply for business loans from financial institutions such as banks to get a working capital injection into their business. In order to secure a loan, these SMEs are required to submit almost flawless business track record or even pledge some form of collateral before their loan application is approved. This means many of the SMEs will not make the cut.<\/p>\n

This creates a gap that peer-to-peer (P2P) financing is expected to fill, to provide a much needed platform for SMEs to gain funding, and eventually to spur the growth of the SMEs in the country.<\/p>\n

Peer-to-peer financing is not new globally, but Malaysia is the first country in ASEAN to regulate it. In 2014, the global P2P financing recorded a US$9 billion growth and in the following year, the number increased to US$64 billion!<\/p>\n

Based on the global trend, does this mean an investment opportunity for investors who are looking to further diversify their investment portfolio?<\/p>\n

<\/span>How does P2P \u00a0financing work?<\/strong><\/span><\/h2>\n

P2P financing is also known as \u201cmarketplace lending\u201d, where businesses can borrow money from P2P platforms like Fundaztic. Once their application is approved, the platform would assign a risk category or credit grade. The loan is then funded by individuals or a group of investors who act as the lender.<\/p>\n

\"p2p<\/p>\n

Currently, P2P \u00a0financing is regulated by Securities Commission with six licensed operators in Malaysia, namely Peoplender, B2B FinPAL, Ethis Kapital, FundedByMe Malaysia, Managepay Services, and Funding Societies Malaysia.<\/p>\n

Fundaztic<\/a>, P2P \u00a0financing platform owned and managed by Peoplender, offers a straightforward and transparent investment and application process for borrowers and lenders.\u00a0 SMEs are able to raise funds for business related purposes ranging from RM20,000 \u2013 RM200,000 and investors can invest with as little as RM50.<\/p>\n