Need More Working Capital? It Only takes 1 Simple Step!

23 June, 2016

Whether it is for system upgrades, repairing costs, operating funds, expansion costs or technical costs, SMEs are constantly looking for avenues of growth and thus, have needs for working capital. To illustrate this, here is an example of Monexo’s recent customer: A renowned furniture company, that will be identified as Company A. Company A sells and rents furniture. Beyond Furniture Sales the company has a steady cash flow stream of $1,000,000 per month from Furniture rental income. This is a repeatable and predictable cash flow as furniture items are rented out in long-term contracts, which allows the owner of Company A to gauge the number of future cash inflows.

Company A needed a short-term working capital of $500,000 quickly and simply. If he had gone to regular financial institutions, it would have taken 7-10 days to get a response of approval or decline, leaving documentation and collateral discussion aside.

Monexo’s innovative solution of loans against future cash flow helped Company A in the case of its Furniture rental income. With a quick 10-minute application process and approval and loan listing in marketplace done on the same day. Company A shared 5 contracts to get the HK$500,000 loan and will pay it back in 6 months’ time. Monexo provides a quick and simple solution for SMEs, facilitating instant business expansion.

This financing came at a time in which Company A was able to seize an opportunity of a new contract and further grow the business.

To further understand this, here are two more examples.

Example 1: A SAAS platform in Hong Kong earns around HK$ 800,000 a month. It has 2 main products and wants to develop and market a new product. This requires marketing research and testing in ‘pilot’ markets, which has an approximate cost of HK$450,000. Monexo will give the SAAS platform the HK$450,000 loan based on the predictable future cash base.

Example 2: A florist shop has 20 contracts with businesses and earns around HK$40,000 a month. The owner decides to further expand by increasing office space, which requires a down-payment of HK$400,000. Monexo will screen the florist shop and put it on the P2P platform.

The above two examples showcase how Monexo helps SMEs meet urgent financial needs. In Monexo, business instalment loans can be processed instantly and efficiently, while also featuring interest as low as $1.21 per day. To know more, click HERE.

Author: Liam Francis Albuquerque @ Monexo