Why is there a rise in P2P lending in SG? Shouldn't these companies go find banks for loans?

Hey there,

I’m Getty and I’m the CEO of CoAssets - an ASX listed fintech company that offers online funding.

You have asked a very good question. To add on to Kenneth’s post, there many types of corporate funding requirements.

I have provided a simple table below to illustrate the various requirements and where alternative funding channels (for corporate debt) sit in the grand scheme of things

While banks is a primary source of funding, there are other funding requirements that banks selectively serve. It is in these gaps where other types of financial institution (including alternative funding channels) serve.

I hope this will give you a better idea on the types of businesses that would use the services of P2P platforms.

These companies do P2P because of one of two issues.

Either:

• they do not meet the requirements from the banks (not enough operating history or payment history)
• they need the money faster and the amounts may be not big enough to justify a bank loan