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Funding Societies, Boost Bank launch secured SME loans
Funding Societies, a Singapore-based SME financing platform, and Boost Bank, a Malaysia-based digital bank, said they have partnered to offer property-backed business financing to small and medium enterprises in Malaysia.
The partnership aims to expand financing access for SMEs through secured lending solutions.
Under the first phase, Funding Societies will originate financing for eligible SMEs using support from Boost Bank’s balance sheet.
The companies said the product will let businesses borrow against industrial or residential properties to fund working capital, expansion, and daily operations, targeting firms with assets that still face financing gaps.
🔗 Source: Funding Societies
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Implications, context, and why it matters.
Property-backed loans widen Boost Bank’s SME lending range
- Boost Bank already offers SME Financing through a Term Loan and Revolving Credit 1.
- RinggitPlus, a Malaysian financial comparison website, describes the Revolving Credit as unsecured and says it does not require collateral 2.
- The bank has focused on underserved micro-SMEs that traditional banks often treat as high risk 3.
- Adding property-backed loans extends that lineup into secured lending for Malaysian SMEs with industrial or residential property, while keeping a focus on businesses that face funding gaps.
Partnerships help digital banks move into new lending categories
- Boost Bank is a licensed digital bank that takes deposits 4.
- In this setup, Funding Societies finds eligible SME borrowers, while Boost Bank provides lending capacity.
- That approach gives a digital bank a faster way into secured lending, without building borrower sourcing and distribution on its own.
- It also pairs a fintech lender’s customer reach with a bank balance sheet, adding pressure on traditional banks that Boost Bank says run on legacy systems 3.
Recent Funding Societies developments
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