P2P microfinancing is an alternative financing option that can provide outreach to smaller enterprises that banks don’t, or won’t, have access to. This is because we, as a Fintech company, are 100% online. From application, KYC, credit-checking to disbursement of funds, an Investor (lender) is able to use their spare cash to provide financing to MSMEs to help them weather this dire economic situation. This results in a win-win situation for all parties where businesses get much quicker access to their required working capital while Investors are able to see considerable returns over a gradual period of time. That is why, if there was a separate ‘Penjana Alternative Financing Scheme’ available to all alternative financing operators, then platforms such as ourselves may be able to reach MSMEs that banks do not serve.
microLEAP offers both conventional and Islamic financing, where the latter is considerably popular among all communities on our platform, not only Muslims. As ethical investments and Islamic principles go hand in hand, we have many non-Muslims investing in our Shariah-compliant Investment Notes and providing much needed working capital to our MSMEs.
In 2021, microLEAP looks to further expand its numbers of both Investors and Issuers as the need to support local businesses has never been more important. All a business requires to begin the application process to procure financing through microLEAP is to be registered as a Malaysian entity and be in operation for at least six months. From there, a stringent, but relatively quick credit check is done to ensure that the business is eligible to be listed on microLEAP’s platform to start receiving financing, ranging anywhere from RM 1,000 to RM 50,000. At microLEAP, businesses have been able to procure their financing as quickly as 30 minutes upon being hosted, with the average being 2 weeks. This goes to show that fast and secure financing doesn’t require businesses to undergo a strenuous process.
With vaccines already being administered, I’m confident that this year will be a year of recovery – one that will need the utmost support of both public and private bodies to help revive Malaysia’s economy. microLEAP is proud to be part of the solution as an alternative financing option for small businesses to stay afloat.