Singapore-based startup Cash-IN-Asia has launched its business-to-business (B2B) fintech lending platform. Its approach to provide a 100% digital experience allows business owners
to obtain financing from their mobile device.
Cash-IN-Asia plans to serve micro, small and medium
enterprises (MSMEs) in Singapore with products that not only address
existing needs, but also assist these key members of Singapore’s economy
to realise their business potential well after the crisis is over.
Its ISO27001-certified platform is powered by artificial intelligence
(AI) and data analytics, and aims to provide a one-stop solution for
transparent and flexible financing to MSMEs. By using AI and analytics
in their credit decision and fraud detection engine, Cash-IN-Asia
combines conventional risk assessment methods with alternative data and
behavioural analysis for quicker and more accurate processing.
Two types of financing are offered: credit line and term loan. Amounts start at S$3,000 for a credit line to a maximum of
S$150,000 for a term loan. Term loan tenures range from six months to
three years, with no pre-payment penalties.
The platform requires a three-minute application, and promises an outcome in less than three hours. Successful applicants can request their approved funds to be disbursed in the next three hours. The time-to-cash process is one of the fastest amongst Singapore-based lenders today, the company said.
According to Cash-IN-Asia, studies* reveal that a significant percentage of small businesses in Singapore tend to be self-funded by business owners who may turn to their personal credit cards when difficulties arise. Credit card interest is high, and robs businesses of the opportunity to build their corporate credit history.
To offer a better alternative, Cash-IN-Asia prices financing rates lower than those of credit cards. The rates start at 20% for a credit line and 18% for a term loan. Cash-IN-Asia also structures its products to incentivise MSMEs to build a credit history that ultimately rewards good customers with cheaper financing over time.
Said founder and CEO, Eldwin Wong: “Our initial rate may be 20%, but the final rate they are charged eventually depends on them. If our clients perform well, confidence rises and trust is built. Our rates then come down, which is one of our unique value propositions for clients.”
Cash-IN-Asia also employs a “don’t use, don’t pay” model for its products. Sign up and application is free, and upon approval, clients are granted a credit facility with no fees or obligations. This is unlike other lenders that may impose a recurring facility fee.
The treatment of delinquent loans is another example of how the lender approaches things differently. The common practice with most traditional lenders is to declare these loans “in default” and resort to legal proceedings. Cash-IN-Asia prefers to work towards long-term “win-win” relationships instead. Troubled clients are given the opportunity to restructure their loans on acceptable terms that will help restore their businesses to health and service their loans.
Wong elaborates: “We believe in helping small business owners with their cashflow. That way, they get to focus more on their business and their chances of doing well increases. In turn, we will be able to scale up their loans and do more for them. One example of that is an automatic review of all client accounts every two months, to raise the credit limits of those in good standing for future growth.”
Cash-IN-Asia is the first B2B fintech lending company in Singapore to attain the ISO 27001 certification for information security. The certification allows it to meet diverse challenges of operating in the digital economy with high standards of business protocols and data integrity.
*Bain & Co, Fulfilling its Promise – The future of Southeast Asia’s digital financial services, 2019; and Deloitte Southeast Asia, Digital banking for small and medium-sized enterprises, 2015.
