Peer-to-peer (P2P) financing platform Funding Societies Malaysia (FSM) has partnered with used car trading platform Carsome to offer dealer financing, a financing product offered to local car dealers for the purchase of used motor vehicles.

KUALA LUMPUR: Peer-to-peer (P2P) financing platform Funding Societies Malaysia (FSM) has partnered with used car trading platform Carsome to offer dealer financing, a financing product offered to local car dealers for the purchase of used motor vehicles.

Through this collaboration, 1,600 used car dealers under Carsome could potentially benefit from a total financing amount of USD$ 200million.

The partnership is in line with both platforms’ mutual aim to empower Malaysia’s small and medium-sized enterprises (SMEs) with short-term financing to help expand their businesses, particularly the underserved local used car dealers.

FSM co-founder and chief executive officer Wong Kah Meng said the company's tailor-made dealer financing product addresses the pain points revolving around used car financing traditionally.

"For instance, the requirement of 100 percent upfront payment by the SME, cumbersome documentation of business operations, among others, hinders these SMEs from expanding their business with limited cash flow.

"This is where we come in by providing a seamless process and, through automation and technology, speed up and lower the cost to serve the financing needs of these SMEs in a viable manner," he said in a recent statement.

Registered used car dealers on Carsome’s platform are eligible for financing of up to 70 percent of the transaction value of the used cars via a seamless and fast process.

One of the main advantages of the dealer financing offered by Funding Societies is that it is open for application to any type of businesses, from sole proprietorships and partnerships to private limited (Sdn Bhd) companies, through Carsome.