Singapore-based fintech company Finaxar has formed a partnership with Vietnam’s Indovina Bank (IVB) and Taiwan’s Cathay Financial Holdings to improve financial access for small and medium enterprises (SMEs) in Vietnam, according to a press statement released today by Finaxar.
The partnership is expected to leverage IVB’s and Cathay Financial Holdings’ data analytics modeling and tools as well as Finaxar’s SME credit solutions to streamline the process for these businesses seeking to apply for credit in Vietnam.
With this in place, small businesses in Vietnam can use the Finaxar Credit Line (FCL) through IVB, which is an online and automated credit financing solution specifically tailored for Vietnam’s SMEs.
According to Finaxar, business owners can now access funds of up to 500 million VND (USD 22,000) through FCL. In contrast to traditional financing, FCL uses a simple model, charging a single percentage fee upfront on the loan amount, with no hidden or processing charges. In-principle credit approval can be granted within 30 minutes of an online application.
Finaxar is backed by Monk’s Hill Ventures, 500 Startups, and also Cathay Ventures – the venture arm of Cathay Holdings. Finaxar also operates in Vietnam and Hong Kong.
About 70% of SMEs in Vietnam, or nearly 400,000 businesses, have little or no access to credit capital, according to the Vietnam Chamber of Commerce and Industry.