Fintech all set to transform SME financing

THE business sentiment among Singapore's small and medium enterprises (SME) is upbeat, as the country's economy expands and productivity gains start coming in from technology investments. But there is one nagging issue that is tempering the mood. And that is nothing but an age-old problem: poor cash flow.

Cash flow constraints threaten to hold SMEs back on their growth strategies. Payment delays have a compounding effect on a company's operations, its ability to reinvest in the business and ensure long-term survival. They are often unable to secure bank financing to tide over payment crises. However, the emergence of marketplace lending in Singapore promises to ease off much of these troubles.

Marketplace lending is set to transform the way SMEs have sought finances so far. This digital platform driven service opens the door to a wide range of funding opportunities, often for requirements that would not qualify for a bank loan.