KUALA LUMPUR, 30 August 2019 – Funding Societies Malaysia, the first and largest Peer-to-Peer (P2P) financing platform in the country, has launched Dealer Financing, the latest addition to its array of investment products, for the purchase of used cars by identified used car dealers.
Dealer Financing is not only the first P2P dealer financing product, but it is also the first collateralized P2P investment in Malaysia, whereby it is backed by additional security which is the ownership claim on the financed used cars.
The product’s introduction is in line with the financing platform’s objective to provide different products that can cater to different risk appetites. In essence, Dealer Financing caters to the more risk-averse investors, who prefer shorter-term investments with collateral as a means for investors to diversify their investment portfolio.
Simultaneously, the product also aims to offer additional financing opportunity for the underserved small and medium-sized enterprises (SMEs) in the country, particularly from the used car industry, subsequently providing short term financing to used car dealers in helping them grow their businesses.
“As an alternative financing platform that serves diverse segments of clients and partners, we continuously gather feedback from our fellow SME clients and investors on how they want to grow further with us. Among those feedback include the investors’ preference for shorter-term financing that provides lower risk, and this is part of the reason we are launching Dealer Financing, the country’s first collateralized P2P investment.”Wong Kah Meng, co-founder and Chief Executive Officer of Funding Societies Malaysia,
For the new product offering, Funding Societies is also working with independent car bidding platforms including MyTukar, MUV and CarlistBid, and has since disbursed financing to more than 100 used car dealers.
Since introducing the new product, Funding Societies has successfully given out close to RM20 million disbursement across 1000 notes as of August 2019. Dealer financing investors stand to gain a net return of more than 8 percent per annum before taxes and defaults, while the minimum investment amount is as low as RM100.