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Modalku elevate MSME sectors in Southeast Asia through funding services
With the vision of advancing the economy of Southeast Asia, Modalku has distributed up to Rp 41.2 trillion (US$2.7 million) in funding for MSMEs in Indonesia, Singapore, Malaysia, Thailand, and Vietnam
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ith the vision of advancing the economy of Southeast Asia, Modalku has distributed up to Rp 41.2 trillion (US$2.7 million) in funding for MSMEs in Indonesia, Singapore, Malaysia, Thailand, and Vietnam. As of the first quarter of the year, they have distributed additional capital to more than five million MSMEs in Southeast Asia.
This is in line with the core of Modalku’s business, which is a platform that provide business funding to develop the business of SME entrepreneurs. Modalku recognize that one of the biggest obstacles for starting a business is the lack of additional capital. With their program, they aim to make it easier for people to be able to elevate their business development.
Additional capital is usually sources from accumulated profit that is obtained every month, which is proven to be an effective method for micro businesses. However, it is not the same case for small and medium-scaled companies, as the market is more competitive compared to micro businesses. Business development that takes too long will not only make a business stagnate, but also unable to compete. Which is why Modalku is offering a solution for SME owners to be able to decrease the threat to their business.
Modalku offers a variety of services without the need to put down collateral, and continues to serve owners through their credit facilities. Their invoice financing service is suitable for those whose business is already a legal entity, such as a PT or CV. With this service, owners are able to make invoices a productive source of funding, and are able to rotate it for various purposes, such as smoothing cash flow, increasing production capacity, increasing stock, and more. By accessing this service, owners are eligible to get an up to Rp 2 billion (US$130 thousand) funding amount, flexible tenor of up to 90 days, and the choice of a repayment with bullet repayment system or full repayment at maturity.
Another product that has been aforementioned is the term loan, for those who want to get fast funds for their business needs. These funds can be used to expedite cash flow, increase distribution, cover promotion costs, and increase stock items. Automatically, these steps will increase a business’ turnover significantly. The product also came with a few advantages; this includes a business credit of up to Rp 1 billion (US$65 thousand), tenor of up to a year, and a repayment with an installment system every month. However, the repayment does include interest. Modalku does assure owners though that the credit payment obligations will not interfere with financial cash flow. More information click here.
An example of satisfied customers is Hary Setiawan, owner of CV Mitra Utama, who has successfully developed his Fast-Moving Consumer Goods (FMCG) business through additional capital through Modalku. The same could be said for Meika Meriana’s story; owner of Lentera Camping outdoor equipment retail business, she managed to increase the number of her shops because she took business capital funding offered by Modalku.
