Funding Societies Lending Platform - Review for SME Borrowers
Funding Societies Lending Platform - Review for SME Borrowers
ValueChampion Rating 
Pros
- Disbursement in 24 hours
- No early repayment fee for working capital loans
Cons
- Not the best for loan tenors longer than 1 year
Funding Societies offers great financing options to SMEs that might not meet traditional banks' requirements. It is particularly unique as it offers one of the largest available term loans ($2,000,000) and the fastest financing option for SMEs (approval from 1 business day). It also offers competitive SME Business loans, which are great short-term financing options for borrowers that do not qualify for traditional bank loans.
| Summary of Funding Societies Crowdfunding Lending Platform |
|---|
| One of the largest digital financing platforms in Singapore, with more than $3.82 billion in business loans |
| Less operational history required compared to banks |
| Lower revenue requirement compared to banks |
| Among the fastest cash disbursements available (48 hours) |
Table of Contents
What Makes Funding Societies Financing Stand Out to SME Borrowers
Funding Societies offers a suite of SME financing: Working Capital Loans (Micro Loans and Business Term Loans) and Elevate Virtual Card Card. While Funding Societies Micro Loans is best for borrowers that require cash as soon as possible, the Elevate Virtual Card makes sense for SMEs that require a credit line and a convenient way to track your spending. Its Working Capital Loans are excellent short to mid-term financing options, which allow companies to keep up with daily operating cash flow needs or grow their business.
Borrowers may also be encouraged by the volume of Funding Societies' deals. Since 2015, the platform has provided loans totalling more than S$3.82 billion (as of Jan. 2023). This indicates the availability of a significant amount of funding and investors interested in lending to SMEs, which enables SMEs to receive their loans more quickly.
A potential downside to the Working Capital Loans is that the interest rates may be higher than traditional Financial institutions like banks. Companies will have to weigh time (advantage: Funding Societies) vs payable interest rates when considering loans between these 2 platforms. The Elevate also lacks a physical card but allows payment through Samsung Pay/Google Pay/ Apple Pay (coming soon) to compensate for in-store purchases.
Who Can Borrow: Eligibility Criteria
| Business Term Loans | Elevate Virtual Card | Micro Loans | |
|---|---|---|---|
| Operational History Required | 24 months+ | 6 months+ | 6 months+ |
| Revenue Requirement | S$500,000 | None | None |
| Approval | 2 - 7 business days | 24 hours | 1 business day |
| Receive cash | Within 48 hours of submitting the signed contract | N.A. (Credit line) | Within 1 business day |
Borrowers seeking Business Term Loans must have operational histories of at least two year and annual revenue of at least S$300,000. Traditional banks tend to require multiple years of operational history and more than twice as much annual revenue compared to Funding Societies. This makes Funding Societies' products great alternatives for younger and smaller companies that might not qualify for bank loans.
How to Apply: Application Process
Funding Societies has a simple and free application process, especially for its Funding Societies Elevate Virtual Card, which has an application process that takes less than 5 minutes with MyInfo Business. Upon approval and activation, the credit line will be made available via the FS Business app for use.
The application and approval process for business Term Loans typically lasts for 4 to 5 business days. For the Elevate Credit Card, businesses must have a minimum 30% local shareholding, as well as at least 6 months minimum operating history. All in all, Funding Societies Working Capital Loan offers a quick alternative to traditional bank financing with lesser time and an easier sign up process. The repayment terms are usually more flexible as well. For the Elevate Virtual Card targeted to SMEs who traditionally face issues with getting another payment option like cards, it allows SMEs to utilise the credit line at a marketing leading 55 days credit term for boosted cash flow, yet granting more flexibility to business owners to position themselves well for any opportunities.
Funding Societies' registration process is free and can be done in minutes. Click the "Learn More" button on this page to get started.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.