Funding Societies introduces “PO Financing” product line to support Thai SMEs in achieving sustainable growth with enhanced liquidity
Tailored loans for Thai SMEs comprising PO Financing with a credit limit up to THB 30 million and PO Express aimed at small enterprises with a credit limit up to THB 3 million
Funding Societies, the largest unified SME digital finance platform in Southeast Asia, reaffirms its commitment to support Thai SMEs in becoming regional economic forces via its latest financing offerings for SMEs, PO Financing product line; PO Financing provides a credit limit up to THB 30 million, while PO Express provides a credit limit up to THB 3 million to entrepreneurs. Both collateral-free financing products are aimed at traders and manufacturers who need to purchase goods and services to fulfill orders by leveraging Purchasing Orders to get cash. Businesses can obtain liquidity upon receiving orders from customers , thereby improving competitiveness and enabling SMEs to realize their full potential.
With over 3 million Thai SMEs, accounting for 99% of all enterprises, these businesses play a vital role in diversifying the economy. They generate income and employment opportunities for over 12.6 million people, contributing to economic prosperity across all regions of Thailand. SMEs serve as the foundation for larger business growth and overall economic development, Nonetheless, a significant number of small and medium-sized enterprises are still unable to obtain adequate funding, thereby preventing the business from expanding in accordance with their intended goals.
Mr. Vikas Jain, Chief Operating Officer, Funding Societies Thailand, highlighted that Thai SMEs face challenges in accessing funds, leading to slow business growth. “Currently, SME loans constitute only around 20% of the loan outstanding in traditional banking system, whereas in developed countries, SME loans make up approximately 55% of the commercial banking system's loan outstanding. It is crucial to support Thai SMEs in accessing funds more easily, unlocking from constraints of traditional financing options that include collateral securities and lower- limit trade financing. This support will revitalize businesses, increase employment, and foster rapid expansion contributing to further growth of the economy.”
Funding Societies’s collateral-free SME loan serves as an important alternative to Thai entrepreneurs; The loan can be easily applied through the website and can be tailored to fit specific needs of SME across their business stages.
Under their latest Purchase Order Financing products, Funding Societies offer two sub-products customizing it to different needs of the SMEs.
1) PO Financing offers loan facility up to THB 30 million to pay for goods and services to suppliers ,no collateral required with the tenor of up to 4 months.
2) PO Express is designed for small enterprises, offering a loan facility of THB 3 million, to pay for goods and services to suppliers with no collateral required with tenor of up to 3 months.
SMEs can submit purchase orders along with financial documents in order to be considered for a PO Finance credit line. When it is time to pay for goods or services, Funding Societies will make the payment directly to the supplier in full amount. On due date SMEs then make repayment to Funding Societies.
“As the COVID-19 situation improves and continuous support from the government's economic and financial policies, many financial institutions anticipate economic growth this year. Domestic consumption and exports are expanding, and efficient access to funds will further drive the rapid growth of Thai SMEs. 'PO Financing' and 'PO Express' loan facilities for small and medium enterprises will provide an additional boost to SMEs growth and are projected to contribute towards a significant portion of Funding Societies' loan disbursement this year. Designed for manufacturers and traders, the financing will enable SMEs to plan ahead effectively and remove typical concerns such as limited credit history or lack of collateral,” Mr. Jain concluded.
Funding Societies is fully prepared to support Thai SMEs to overcome financial challenges and expand their businesses . The platform assists all stakeholders, including SME manufacturers, traders, and service contractors, in various business development stages. SMEs interested in PO Financing can find more information at https://fundingsocieties.co.th/po-financing
