Multiply Capital launches startup that provides financing for SMEs

Source: IBS Intelligence 2020-06-24

IFS Capital’s subsidiary – Multiply Capital, a company based in Singapore, has launched its new website providing financing for micro and small businesses in the country. The set up allows Multiply to offer financing to businesses typically deemed too small for financing. These include start-ups, sole-proprietorships/ partnerships, and other small enterprises, where the average working capital requirement is ~S$30-50k.

Since Multiply started, its average loan size is around S$20k, with the smallest invoice funded being $500. The company was started via IFS’ intrapreneurship and incubation programme, aiming to empower entrepreneurs within the company to come up with innovative business ideas to better serve their clients.

Jonathan Chong, Chief Operating Officer of Multiply Capital stated, “With the resources and the experience of IFS, as well as the agility and nimbleness of our start-up, we were able to develop a fast and affordable service for micro and small enterprises.”

The idea for Multiply was conceived when the team noticed a gap for smaller sized loans, which tend to not be profitable for most financing companies to provide. Further, smaller companies tend to have limited, incomplete financial data, which adds to the difficulty in making an accurate risk assessment and credit evaluation. The company offers small-ticket working capital loans and invoice financing.

“We saw a demand in the market as smaller companies had a lot of their cash flow locked up in unpaid invoices. That gave us the idea to start this segment of our business,” Chong mentioned.

With the help of open-source technologies such as Amazon Web Services, Machine Learning, and NoSQL, Multiply is able to lower its cost via a simple team structure, proprietary origination platform, credit assessment model, and the constant optimisation of operational workflow.

IFS Capital

Multiply Capital

Multiply Capital launches startup that provides financing for SMEs

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