PETALING JAYA: P2P financing platform Funding Societies is offering deferment or rescheduling options to help small and medium-sized enterprises (SMEs) face the challenges brought on by the Covid-19 outbreak.
Following the first quarter of 2020, it noted that the outbreak has already caused further economic challenge, placing additional pressure on companies that were already faced with an uncertain business outlook.
It said that SMEs especially are the most vulnerable as they struggle in managing their cash flow, inventory and distribution of goods and services during this trying time.
Funding Society explained that the customised deferment or rescheduling option will provide cash flow relief to SMEs to sustain their businesses and, in turn, safeguard jobs, particularly in adversely affected sectors, including offline-focused retailers, wholesale traders and manufacturers involved in imports and exports, construction of new projects, and tourism and hospitality.
Its CEO and co-founder Wong Kah Meng (pix) said it is fully aware that SMEs are the backbone of the country as it contributes close to 40% of the nation’s GDP and 66% of total employment.
“However, they are also the most vulnerable to a volatile economic environment, particularly amid this coronavirus ‘blackswan’ event that we are experiencing at the moment.
“On the other hand, we are also compelled to protect the best interests of our investors who, together with us, have been supporting these SMEs,” he said in a statement.
