SME Digital Financing: Ways to Upgrade Your Business Digitally

SME digital financing leverages the latest digital technology to support Small and Medium-sized Enterprises (SMEs), making financing accessible and sustaining their businesses. In Malaysia, SMEs account for more than one-third of the country’s gross domestic product (GDP) and provide employment opportunities to over four million workers.*

Interested in knowing more about this reliable and convenient financing solution for SMEs? Fret not! Here, we tap into SME digital financing and discuss its definition, benefits, and types of digital financing available in Malaysia.

What is SME Digital Financing?

In today’s digital age, SME digital financing is tremendously important as it provides SMEs with sophisticated tools and relevant resources for financing. Compared to traditional financing, digital financing offers a faster and more flexible financing alternative.

To elaborate, it is harder for SMEs to secure funding through traditional financing solutions, such as loans offered by banks and other financial institutions, due to their lack of collateral or established credit histories. Meanwhile, digital financing platforms offer greater financial inclusion for SMEs by deploying sophisticated financing structures.

Today, SME digital financing is gradually gaining traction in Malaysia, with several digital financing platforms emerging to provide SMEs with affordable financing schemes. These innovative platforms typically employ integrated technology systems to streamline the application and approval process.

Read More: How DaaS 360 Helps Sustainable Growth for Businesses

Benefits of SME Digital Financing

SME digital financing has the potential to transform and revolutionise the way small businesses access finance. Below are some of the significant benefits of digital financing platforms:

Quick Funding

SMEs can experience quick and easy funding with automated credit checks by applying for loans online through digital financing. As a more efficient alternative to traditional funding, SMEs may receive approval and funding in just a few hours or days.

Better Cash Flow

Managing cash flow is a prevalent challenge for businesses, especially SMEs. Digital financing enables SMEs to improve cash flow by reducing upfront costs, providing access to the latest technology, and lowering maintenance costs.

Various Payment Options

With different payment options to choose from, businesses can choose the best payment schedule that matches their cash flow needs. This way, businesses can swiftly handle their finances and fulfil payment obligations without financial strain.

Asset Building

Digital financing can elevate SMEs’ operations by providing significant assets, such as devices, that can help them to grow and succeed. By eliminating the need for a massive upfront investment, SMEs can improve performance, promote growth, and ensure business continuity.

Tax Benefits

In Malaysia, certain digital financing platforms offer tax benefits, such as tax deductions or tax credits, to reduce the heavy tax liability for businesses. As a result, businesses can improve their cash flows and implement strategic investments.

Types of SME Digital Financing Available

SME digital financing provides an extensive range of financing options to cater to your specific needs and requirements. You can choose one of its many viable options that best suit your business preferences and cash flow, for instance:

Device Leasing

Device leasing offers businesses efficient, quick, and easy access to expensive devices without breaking the bank. With device leasing, you can rent your devices and accelerate the adoption of advanced equipment in the workplace.

Term Loan

As per its name, a term loan is a type of loan that you can borrow for a fixed period of time and repay in instalments over the agreed loan term. The application process is typically straightforward, offering quick access to the funds you require.

Line of Credit

Applying the same principles as a credit card, you can access and withdraw the agreed amount of funds as needed. Line of credit has lower interest rates than other financing options and allows businesses to have better cash flow management.

Brand-Specific Financing Schemes

This form of digital financing offered by specific brands provides businesses with bespoke financing options tailored to their brand or product offerings. Businesses can leverage these schemes to boost productivity and enhance overall efficiency.

Green Tech Financing Schemes

A green tech financing scheme facilitates the production and use of green technology, enabling businesses to mitigate adverse environmental impacts. Hence, businesses can transition towards sustainability and develop resilience.

Read More: How Good Business IT Can Boost Your Team’s Work Efficiency

DaaS 360 Tech Financing

DaaS 360 is perpetually in the pursuit of elevating businesses through digital transformation. Equipped with a myriad of high-quality IT products and services, our DaaS 360 solution offers robust device lifecycle management with a sustainable and ethically responsible device recovery service.

Delivering affordable tech financing service in Malaysia, DaaS 360 ensures customised solutions with personalised payment modes, both long-term and short-term, to suit your unique business requirements. Engage our services to enjoy a tech financing solution with seamless performance and unparalleled protection.