Financing Your SME with Rent Cash In Loans

16 October, 2015

Monexo is back and ready to continue its work educating individuals on the various applications of peer to peer lending.

Two weeks ago, we focused on how Monexo’s rent-cash in loans could be used as a bridging solution, with specific emphasis on how property owners can expand their holdings. If you haven’t done so already, check out that article here. Today, we will focus on how rent cash in loans can be a lucrative outlet for small and medium enterprises.

Small and Medium Enterprises (SMEs), although critical cogs of the economic wheel in most countries, are often neglected by traditional financial institutions and their access to capital is limited at best.

In the wake of the 2008 financial crisis, lending institutions became risk averse. Credit checks became much more stringent as banks grew weary of anyone with even a slight default risk.  As a result, SMEs have found themselves marginalized by the conventional banking industry, with little access to affordable capital and miles of red tape to navigate.  This is a real problem, as SMEs are often the driving force of growth, particularly for Hong Kong’s economy.inflatable mickey mouse bouncer castle for sale

SMEs persist by finding other sources of financing: family, friends, various crowdfunding endeavors, or even underground means.  But there are other ways to raise capital, and too often, SMEs are simply unaware of these alternatives.

The worldwide credit gap for SMEs is expected to be around $1.2 trillion, an issue for the global economy as a whole.

Total Credit Gap

Hong Kong can be evaluated as a microcosm of this global issue with a HK$33 billion credit gap for SMEs.  As one of the most growth stimulating segments of the Hong Kong economy, it is no small problem that SMEs are underfunded and unsupported.

There are over 300,000 SMEs in Hong Kong, which account for 98% of all businesses, 48% of the workforce, and 60% of private sector revenue. Yet, several thousands of these firms do not have access to a stable and affordable line of credit, forcing promising businesses to shut their doors.large inflatable ball

To stay afloat and stimulate growth, SMEs must look elsewhere for financing.  Peer-to-peer lending is one such avenue - through our rent-cash in product, we at Monexo are streamlining the process for SME’s by making capital accessible and affordable.

At Monexo, borrowers (individuals and corporations) who possess a property and receive rental income on that property are eligible to apply for a loan and can be successfully approved for that loan within 24 hours of submission.  It really is that simple, that easy, and that quick. Not only that, but Monexo also provides its borrowers with fair loans – our interest rates are flat, and our loans are on a declining balance rate (see here).

Monexo’s offered rent-cash in product is one form of alternative financing that SMEs can turn to – affordable, swift, and simple.

Do tune soon for #MonexoMonday! Like, share, and tweet us your ideas, questions or comments @WorldofMonexo.#MonexoMonday

Author: Sahil Mohnani @ Monexo