Singapore-headquartered Finaxar, a provider of data-driven financing solutions, has announced a partnership with Ho Chi Minh City-based Indovina Bank and Taiwan’s Cathay Financial Holdings to provide financing solutions to small and medium enterprise in Vietnam.

A press statement said that the partnership will provide working capital to SMEs that are growing fast in the region with easier access to credit online through Indovina Bank’s FCL credit line product, which is powered by Finaxar.

FCL is an automated credit financing solution specifically tailored for Vietnam’s SMEs. FCL does not require business owners to provide any collateral and gives business owners flexibility in their repayment schedules. FCL allows owners to grow their businesses in various ways, including procuring inventory and boosting general business expansion.

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Business owners can now access funds of up to 500 Million VND (US$22,000) through FCL online. FCL only charges a single percentage fee upfront on the loan amount, with no hidden or processing charges. In-principle credit approval can be granted within 30 minutes of an online application, said the statement .

“Our mission is to bring a full suite of innovative products into the market to reinvent how business finance for small businesses are done and to address the pain point of access to financing for SMEs,” said Finaxar Co-founder Dr. Sian W. Tan.

Today, SMEs comprise 96-98 per cent of enterprises operating in Vietnam, but up to 60 per cent are still unable to access credit to fuel their growth.

“In our experience, small businesses in Vietnam face random demand fluctuations which require them to possess some form of capital flexibility. This is where the Finaxar Credit Line (FCL) comes in. FCL is part of Finaxar’s reinvention of traditional business financing to accommodate and support the growth of SMEs in the 21st century,” said Finaxar Co-founder Vihang Patel.

“We care about Vietnam’s people and how SMEs are being financed for business growth,” said Marcus Lopez, Executive Vice President and Head of Digital, Data and Technology at Cathay Financial Holdings, investor to both IVB and Finaxar. “Powered by IVB/Cathay’s sophisticated data analytics modelling and tools, plus innovative financing solutions backed by IT infrastructure and API platforms, we are pleased to partner with Finaxar offering tailor made products and services to unbanked local clients and customers. With 214 offshore office worldwide as well as intensive footprints in Asia-Pacific markets, we are open to all possibilities to collaborate creating even more exciting business benefits to this region.”

Finaxar is a technology company that provides data-driven financing solutions tailored to SMEs in Southeast Asia. Headquartered in Singapore and operates in Vietnam and Hong Kong,  Finaxar is backed by Monk’s Hill Ventures, 500 Startups, Cathay Ventures, the venture arm of Cathay Holdings.

In 2018, Lazada partnered with Finaxar to provide working capital financing to its sellers.