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For Small and Medium Enterprises (SMEs), you may wonder, is it worth taking up a micro financial loan? Well, you’d be surprised. Loans are now more easily given and favored to smaller businesses rather than industry giants.

On that note, we now introduce Grab Financial Services Malaysia (GFSM)! What’s it about, you ask? Well, Grab is now an official business partner for Biztory and our mission is to help local businesses succeed, and together with Fundaztic, we aim to help our merchants grow their business too. A loan is typically designed to help you grow your business, whether to help with day to day cash flow, extend your list of employees, to purchase new equipment or to simply branch out and open new outlets. So it is perfectly fine for you to go for micro financing because we believe SMEs should grow via this funding. So what are you waiting for? “Grab” it today before it’s too late! If you have an interest in this business financing and would like to apply, you can click HERE to get started! 

These are the loan tenures, and loan amounts, and interest rates if you sign up for a GFSM loan!

You may not believe what I have to say about it, so read more and check out how this has disrupted the Chinese banking industry by Jack Ma himself!

In fact, Jack Ma’s online bank MYbank has lent approximately 2 trillion yuan (RM600 billion) to nearly 16 million SMEs, extending credit to once ignored and overlooked small businesses. Now you may ask, why would he do this?

According to Keith Pogson, a global assurance leader for banking and capital markets at Ernst and Young (E&Y) based in Hong Kong, banks often think that giving loans to Small and Medium Enterprises (SMEs) was too difficult or risky, but now they run their model and work out what the risks are to make them feel more comfortable. Furthermore, through Jack Ma’s Ant Financial, the biggest shareholder of MYbank, they are able to analyze real-time transactions to gain insights into creditworthiness, after obtaining proper authorization from borrowers of course. For example, a decline in customer payments at a retailer’s flagship store might be an early sign that the company’s likelihood, and its ability to repay its debt, are decreasing.

The good amount of expenses information gives a loan approval rate at MYbank that’s four times higher than traditional lenders, which typically rejects 80% (if not all) of small-business loan requests and take at least 30 days to process applications. Through Jack Ma’s online bank, borrowers simply apply on a smartphone and receive cash almost instantly if they’re approved. The whole process takes up to three minutes and involves zero human bankers.

A good example on taking up this loan was a testimonial by Zeng Ping’en, who runs a scooter store in Hangzhou with about 1.2 million yuan in annual sales. After allowing MYbank to access his store’s transaction data, Zeng has been able to take out small loans to cover short-term cash needs. He pays an annualized interest rate of about 15%. He claimed that just a few years ago, no bank would approve his loan requests, but now he is able to borrow whenever he needs to with trust from the bank.