How to mitigate risks when investing with Peer-to-Peer financing (P2P)

You’ve got a solid business, a loyal customer base, and a growing list of orders. Everything seems to be on the right track—except for one thing: cash flow. Despite your best efforts, banks still hesitate to offer the support you need. If this sounds familiar, you’re not alone. Many thriving small and medium-sized enterprises (SMEs) face this exact challenge when seeking SME financing . So why do good businesses still struggle to get loans ? Let’s explore the reality of SME financing in Malaysia , uncover what’s holding SMEs back, and how alternative financing options may hold the key to a more stable financial future. 1. Healthy Revenue ≠ Healthy Cash Flow A common misconception among lenders is that profitability equals creditworthiness . But many SMEs operate on tight margins and delayed customer payments, creating a cash flow gap . Even when business is booming, these delays can leave SMEs strapped for liquidity when they need it most. And here's the problem: traditional lender...

  For many small and medium-sized enterprises (SMEs), access to financing is a major hurdle. Despite their role in driving economic growth and job creation, many SMEs struggle to secure loans due to strict creditworthiness criteria imposed by traditional financial institutions. But are these conventional lending requirements truly reflective of a business’s ability to repay a loan, or do they unfairly disadvantage SMEs ? In this blog, we’ll explore how traditional loan assessment methods impact SMEs, why they may not always be fair, and alternative approaches that can provide better SME financing in Malaysia and beyond. Traditional Creditworthiness Criteria: A Barrier for SMEs? Most banks and financial institutions evaluate loan applications based on standard credit assessment models , which typically include: ✅ Credit Score & Financial History – A strong credit history is often required, which newer or smaller businesses may lack. ✅ Collateral Requirements – Many loans de...

  Innovation is the driving force behind business growth, enabling small and medium-sized enterprises (SMEs) to develop new products, improve processes, and stay competitive. However, many SMEs struggle to fund their innovative ideas due to cash flow limitations or difficulty accessing capital. SME financing plays a crucial role in bridging this gap, providing businesses with the resources they need to turn ideas into reality. In this blog, we’ll explore how SME financing in Malaysia and beyond can support innovation, the challenges businesses face in securing funding, and the best financing options to fuel growth. Why Innovation Matters for SMEs Innovation isn’t just for big corporations—it’s essential for SMEs looking to differentiate themselves and thrive in a competitive market. Here’s why: ✅ Product Development: Launching new or improved products keeps businesses relevant. ✅ Process Efficiency: Innovative technologies reduce costs and improve productivity. ✅ Market Expan...