If you are short of cash to pay salaries, rent or buy new supplies because your clients are paying you late, then, crowdfunding might be your answer.
SMEs are encouraged to use them and since 2015, more than a billion Ringgit have been crowdfunded to help finance our nation’s businesses from various industries. See chart below
It doesn’t really matter which industry you are in, if your business enjoys a healthy double-digit profit margin and you provide products or services with fast turnaround time, then you are most likely a suitable candidate for P2P financing.
Although the terms are only 30 to 180 days – they are repeatable i.e. You can “roll”. You can make full repayments today, and then raise a new round of financing next month or the month after. This will give you constant access to cost-effective capital as and when you needed them for your businesses throughout the year.
An important benefit from repeated use of this facility is having a track record. The more rounds you raise (with prompt repayments), the cheaper your interest rates become and the more money you can raise for your subsequent rounds.