- Loan enables for simplified SME financing, wider liquidity access
- Facility strengthens CapBay’s ability to support and grow Malaysian SMEs
HSBC Malaysia has provided its first social loan facility to Bay Harbour Ventures Sdn Bhd (BHV), a special-purpose vehicle established by peer-to-peer (P2P) lender CapBay.
In a statement, the bank noted that the social loan provided to CapBay via BHV will enable the company to simplify SMEs’ access to funding and connect them to multiple liquidity providers to meet their financing needs. Through this social loan, CapBay will be able to further support and accelerate the growth of SMEs in Malaysia.
SMEs are the backbone of the Malaysian economy. Malaysia aims to increase SMEs’ contribution to GDP from the current 38.4% to 50% by 2030, aligning with the average share of SMEs in OECD countries. However, one of the most critical determinants of SME progress is access to financing; addressing these financing challenges is therefore essential to strengthening the SME ecosystem.
This solution provides flexibility in managing CapBay’s financing requirements, anchored by the client’s portfolio of loan receivables. It allows the client to monetise receivables upfront and reinvest capital for growth, while enabling both HSBC Malaysia and the client to proactively manage the risk and health of the receivables portfolio.
Christina Cheah, head of Global Corporates and International Mid-Markets, HSBC Malaysia, said, “To unlock the potential of SMEs in Malaysia, it is vital to establish an ecosystem where access to finance acts as an enabler throughout the business lifecycle. A recent study by the Institute for Capital Market Research (ICMR) highlights the pivotal role of market-based financing in facilitating the allocation of capital, empowering SMEs to thrive and make significant contributions to Malaysia’s socio-economic development.
“The social loan provided by HSBC to CapBay exemplifies an innovative solution that broadens access to capital liquidity for SMEs, enabling them to fund their working capital requirements more efficiently,” she added.
Ang Xing Xian, co-founder and CEO of CapBay, said, “SMEs in Malaysia are often underserved by banks and other financial institutions due to factors such as a lack of collateral and insufficient statutory financial records for credit risk assessments. At CapBay, we complement the financial ecosystem by focusing on these SMEs — leveraging alternative data from the financial supply chain and our AI-driven proprietary credit-decisioning model to underwrite these businesses more effectively and provide broader, faster access to financing.”
“We strive to provide smart and inclusive financing to businesses across Southeast Asia, and we are proud to partner with HSBC Malaysia through this social loan facility, which enhances access to funding for SMEs that are key drivers of Malaysia’s economic growth and socio-economic development,” he added.
