Funding Societies 64
Entrepreneurs need capital to grow. Funding Societies offers an alternative to traditional banks by giving small and medium-sized enterprises in Southeast Asia access to financing.
The project
Many micro, small and medium-sized enterprises in Malaysia struggle to obtain financing from traditional banks. Due to limited credit histories and their need for smaller loan amounts or shorter loan terms, these businesses may not always be attractive to traditional lenders. This creates a financing gap, even though these enterprises play an important role in the local economy and provide employment.
Entrepreneurs need capital to move forward. They may want to invest in machinery, inventory, business expansion or additional staff. Without access to financing, it is difficult for them to realise their growth plans.
Funding Societies is a digital financing platform that connects businesses seeking financing with investors. The platform uses technology and business data to assess the creditworthiness of enterprises. This gives businesses access to financing that meets their needs.
Your investment contributes to financing entrepreneurs in Malaysia, enabling them to invest in the growth of their businesses. Will you join?
Your investment
- Annual interest rate: 6%
- With an investment of €1,000 the expected total repayment is €1,045
- Maturity: 12 months
- Currency: EUR
Funding Societies
Impact
SMEs comprise about 60% of Southeast Asia's GDP and provide most jobs, but they face a $320B financing gap. Funding Societies has stepped in to bridge this gap, financing over €815 million through more than 3 million business loans in the last five years. Their focus lies in short-term credit, typically under 12 months, tailored to meet the needs of SMEs.
The impact of their loans is significant. About 76% of SMEs use their loans for working capital. Many acknowledge that this financing was essential to keep their businesses open and maintain their workforce. Furthermore, Funding Societies fosters women's economic empowerment by supporting female entrepreneurs, who comprise 24% of their borrowers.
Investing in Funding Societies on Lendahand promotes financial inclusion and social mobility in Southeast Asia. With Funding Societies, you can contribute to regional development and make a real difference in people's lives. Due to financial and political instability in Indonesia, Funding Societies has been rather cautious in Indonesia and they have not grown that particular portfolio since 2023, with Lendahand investments being raised for Funding Societies Malaysia as of July 2026.
Related blog posts
Discover more - Log in or create an account
To protect our partners, certain information is only available when you are logged in. Log in, or create an account if you are new to Lendahand!