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

  On the surface, it seems like Malaysian small businesses are spoiled for choice. Numerous government initiatives, bank programs, and fintech platforms proudly offer various Yet paradoxically, many SMEs continue to struggle to access the capital they need to survive and grow. This contradiction is at the heart of what’s often called the SME financing paradox . Despite a growing number of SME loan schemes and business loan in Malaysia offerings, the reality is that many entrepreneurs are still being left out. Why? Let’s break down what’s going wrong—and what needs to change. The Illusion of Availability On paper, SME financing in Malaysia is abundant. From Bank Negara Malaysia’s targeted relief funds to alternative lenders offering micro-loans, there seems to be something for everyone. But for small business owners seeking SME financing , application processes remain complex, and approval rates are still alarmingly low. One key reason is a mismatch between what lenders offer a...

  Small and medium-sized enterprises (SMEs) are the backbone of many economies, and as the business landscape evolves, so too does the way SMEs access funding. In 2025, SME financing is expected to undergo significant transformations driven by technological innovation, policy changes, and shifting market demands. Whether you're a business owner seeking SME financing in Malaysia or exploring new ways to fund your next expansion, understanding these trends will be crucial. 1. Rise of Digital SME Financing Platforms Digital transformation continues to reshape the financial sector. In 2025, expect to see more streamlined, tech-driven platforms offering faster access to SME loans. These platforms leverage AI, big data, and automation to evaluate creditworthiness, cutting approval times from weeks to days—or even hours. For entrepreneurs seeking SME financing, this means less paperwork and faster decisions. In Malaysia , fintech platforms are increasingly providing alternatives to tradit...