SMEs are driving the growth of P2P financing
Chee Jo-Ey | 29 Nov 2019 00:30
Small business owners in Malaysia still have limited access to financing despite making up 98% of the business sector. It is unsurprising then that an alternative investment, peer-to-peer (P2P) financing, is gaining traction.
The P2P financing industry in the country has reportedly raised nearly RM377 mil as of June this year, funding over 1,100 small and medium enterprises (SMEs).
P2P financing involves investors lending money to individuals and businesses via P2P platforms. Investors with limited capital can start investing with as little as RM50 in P2P lending while businesses get access to funding without having to go through the stringent requirements set by banks.
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