KUALA LUMPUR: Funding Societies, a peer-to-peer (P2P) financing platform, has taken a multi-pronged approach to further tighten its risk assessment processes to ensure investment by clients remain protected while continuing to support the underserved small and medium enterprises (SMEs) who are affected by the Covid-19 outbreak.
In a statement yesterday, its co-founder and chief executive officer Wong Kah Meng said among measures taken are assessing the impact of Covid-19 and the ongoing movement control order (MCO) on its SME clients’ repayment capabilities.
He said the platform is also revising industry focus and implementing shorter financing tenures, reviewing existing SMEs’ exposures and reducing concentration risk, where justified, following reduced business activities, as well as implementing monitoring and action plans for impacted SMEs.
“No part of the economy as well as businesses or individuals have been immune to the impact of Covid-19. As an alternative financing platform which relies heavily on the trust of our investors, a key principle in our decision-making process is to protect our investors from undue risk.
“Following these measures and where warranted, we would align with the impacted SMEs on a reasonable deferment plan. Restructuring is another option that we can consider, given there is such a request, and that specific requirements are fulfilled by the SMEs, ” he said.
He said as a responsible P2P financing platform, Funding Societies has a delicate balance that it must strike between safeguarding its investors’ interest and remaining committed to supporting SMEs. — Bernama