{"id":59166,"date":"2023-10-17T10:00:10","date_gmt":"2023-10-17T02:00:10","guid":{"rendered":"http:\/\/wordpress-my-161844363.ap-southeast-1.elb.amazonaws.com\/articles\/?p=59166"},"modified":"2024-02-02T14:24:29","modified_gmt":"2024-02-02T06:24:29","slug":"p2p-lending-platforms-business","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/p2p-lending-platforms-business","title":{"rendered":"Should You Opt For P2P Lending To Fund Your Business?"},"content":{"rendered":"

Small and medium enterprises (SMEs) are a major contributor to Malaysia\u2019s economy. According to an <\/span>OECD report<\/span><\/a>, Malaysia\u2019s micro, small, and medium enterprises (MSMEs) account for approximately 97.2% of total business establishments, generating 38.2% of GDP and providing employment for 7.3 million people as of 2022. However, SMEs tend to struggle with certain issues that are not normally a problem for larger businesses.\u00a0<\/span><\/p>\n

One such problem is access to funding. While the government has been taking extensive steps to <\/span>assist MSMEs with growth<\/span><\/a> and access adequate funding, some businesses have turned to alternative methods of financing to help compensate for this weakness. One such alternate method is P2P lending.<\/span><\/p>\n

<\/span>What is P2P lending?<\/b><\/span><\/h2>\n

Instead of applying for loans from banks, Peer-to-Peer (P2P) lending offers businesses the option to obtain funding through an online platform in the form of crowdfunding.\u00a0<\/span><\/p>\n

If this sounds a little sketchy to you, don\u2019t worry! In 2016, Malaysia became the first country in Southeast Asia (SEA) to <\/span>regulate P2P platforms<\/span><\/a> in an attempt to help SMEs.<\/span><\/p>\n

There are numerous P2P lending platforms on the market, and each may offer businesses different types of financing options which organisations can choose from according to their needs, such as invoice financing, working capital financing, general business financing.<\/span><\/p>\n

<\/span>Eligibility<\/b><\/span><\/h2>\n

In order to qualify for raising funds via P2P lending, businesses will need to meet a certain set of requirements that have been laid out by the Securities Commission (SC). These requirements are as follows:<\/span><\/p>\n

    \n
  1. Has registered with Companies Commission of Malaysia (SSM) or local authority as one of the following business entities – sole proprietorship, partnership, limited liability partnerships, private limited company, or an unlisted public company.<\/span><\/li>\n
  2. Can only host one funding on a P2P lending platform at a time unless the concurrent funding on another P2P lending platform is for different purposes.<\/span><\/li>\n<\/ol>\n

    Apart from that, certain P2P lending platforms may require a few additional requirements to be met before they approve of certain businesses:<\/span><\/p>\n