Singapore-based peer-to-peer lending platform Funding Societies will take part in the country’s financing scheme for small- and medium-sized enterprises (SMEs).
The platform’s direct lending entity, FS Capital, received approval to participate in the Enterprise Financing Scheme (EFS), delivered through government agency Enterprise Singapore.
It has become a participating financing institution (PFI) and will deploy its first loan under the programme this month.
Funding Societies will roll out the EFS products in a phased manner starting with working capital, trade and temporary bridging loan products.
The platform, which has distributed S$1.75bn (£990m) through over three million loans across Singapore, Indonesia and Malaysia, aims to use the scheme to support SMEs with working capital, customised financing options and repayment structures.
In 2018, International Enterprise Singapore and SPRING came together to form Enterprise Singapore.
Then in October 2019, EFS was formed to streamline Enterprise Singapore’s existing financing schemes into one.
FS Capital’s accreditation to the scheme follows engagement with SPRING and Enterprise Singapore since January 2017.
“We’re extremely grateful and impressed with Enterprise Singapore’s initiative to include fintech firms in its programme in a thoughtful manner, carefully balancing policy risk and impact,” said Kelvin Teo, co-founder and group chief executive of Funding societies.
“We see it as a huge privilege and responsibility to serve SMEs further.”