FintruX Network offers smart solutions for startups, SMEs

Singapore

AT one popular hawker centre in Jurong West, there are hardly any crowds during lunch time these days, with one noodle stall owner lamenting that her takings have fallen by 60 to 70 per cent since Covid-19 first broke out.

This is one group of affected business owners that FintruX Network wants to help.

The company, which provides smart solutions for under-served startups and small and medium-sized enterprises (SMEs) via blockchain technology, recently set up a S$2 million fund.

The aim is to accelerate sustainable financing for small F&B businesses such as hawker stalls, street stalls and individually-owned food establishments affected by the pandemic.

Derek Cheung, board adviser of FintruX Network, said: "It is important for companies to work together and, where possible, pull under-employed resources together to help small businesses in their respective industries." He added that the initiative was possible due to FintruX Network's "long-term impact investing into sustainable finance".

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The fund will facilitate loans initiated through partners such as F&F Fintech from June 2 to March 31 next year.

F&F Fintech is an alternative lending company with a vision to eliminate harmful lending practices and unsustainable debt in the F&B industry. Founder Ryan Teo said over 70 per cent of small F&B businesses do not meet the minimum criteria to obtain loans from banks and financial institutions.

F&F Fintech works together with these businesses and their affected suppliers to come up a viable payment plan to defer commercial payments for up to six months.

"For small businesses in all other industries, FintruX Network and F&F Fintech will work together with small business owners to offer other financing solutions that best suit their capital requirements," said Mr Teo.

With over 60,000 licensed hawkers and food establishments in Singapore, this initiative aims to reduce the number of vulnerable F&B business owners accepting loans from unlicensed moneylenders, which can result in severe financial and emotional distress, especially during this challenging period.

Looking beyond the short-term, small F&B businesses and their suppliers in Singapore will have full access to FintruX Network's suite of smart solutions, including TruX. TruX empowers small F&B businesses to build a business profile in real-time, that improves upon established industry standards.

Mr Cheung said: "The solution automatically tracks all loan repayments and commercial payment behaviours to store both positive and negative data attributes on a blockchain for external stakeholders of business financing to make informed decisions from. This provides a financial trust network and a peer-to-peer ecosystem for the benefit of alternative lenders and other sources of funding, while accelerating access to capital for the benefit of small F&B businesses and their suppliers."

In addition to the fund, FintruX Network has procured 1,000 sports t-shirts packed in care bags for migrant workers affected by Covid-19.

This initiative was facilitated by a group of youth volunteers who has been supporting migrant workers for the past year.

In June last year, the youths packed and distributed goods donated by the community, and had the opportunity to break fast with over 200 migrant workers at Tuas View Dormitory. According to volunteer leader Atiqah Aminudin, they had planned to do the same this year but due to safe-distancing measures, they had to improvise their plans to support migrant workers.

This year, the group of youth volunteers packed and distributed care bags to migrant workers residing in Taman Jurong, Clementi and Tampines, among many other locations.

These care bags consist of items which include sports t-shirts, pain relief patches, biscuits, and messages of appreciation and encouragement from Singaporeans.

Over the next few months, FintruX Network, together with several for-profit and non-profit organisations - which include Hustle & Bustle, RSVP Singapore and together.sg - will launch several #SGTogether online/offline initiatives in the vicinity of Ten Square @ Short Street, the upcoming Landmark of Good.

The landmark, to be completed by the end of this year, will amplify values-in-action of organisations, beneficiaries, sponsors and volunteers.