MICROCAPITAL BRIEF: Funding Societies Inks $50m Line of Credit from HSBC to Bolster Small, Medium-sized Enterprises (SMEs) in Southeast Asia

Funding Societies, a Singapore-based platform using crowdfunding and other sources of investment to lend to small and medium-sized enterprises (SMEs), recently agreed to borrow up to USD 50 million from the local unit of UK-based HSBC. Funding Societies is active in Indonesia, Malaysia, Singapore, Thailand and Vietnam, offering products such as payment cards, term loans, property-backed financing, supply-chain financing and revolving credit. During the 2022 fiscal year, it issued loans totaling SGD 1.0 billion (USD 700 million). Funding Societies accepts investments from the public in amounts as small as SGD 20 (USD 14) that can be directed to several SME products with various rates of return. These returns averaged 7 percent during the year 2021.

HSBC, formerly known as Hongkong and Shanghai Banking Corporation, was founded in 1865 and since has grown to serve 63 countries. As of June 2022, the institution reported total assets of USD 2.98 trillion.

By Nithin Naren, Research Associate

Sources and Additional Resources

Cision PR Newswire article
https://en.prnasia.com/releases/apac/funding-societies-signs-us-50-million-credit-facility-with-hsbc-to-drive-sme-growth-in-southeast-asia-372515.shtml

Funding Societies homepage
https://fundingsocieties.com

HSBC homepage
https://www.hsbc.com

Previous MicroCapital article on HSBC
https://www.microcapital.org/microcapital-brief-hsbc-to-provide-technical-assistance-to-microfinance-institutions-in-middle-east-north-africa-in-partnership-with-grameen-jameel-bankers-without-borders/

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