In order to introduce its exclusive shariah-compliant digital financing solution “Pay-As-You-Sell AdvanceTM” (PAYS Advance) throughout Southeast Asia, beginning with Malaysia, Singapore-based fintech company Seedflex Technologies (Seedflex) has raised seed funding from 500 Global.
In order to provide underprivileged micro, small, and medium-sized enterprises (MSME) with access to credit, Seedflex announced on Thursday that it has begun implementing PAYS Advance in Malaysia.
With the intention of launching the service in new Southeast Asian markets, such as Indonesia, Thailand, and beyond in 2025, the company plans to extend its reach to a larger segment of Malaysian cashless merchants through digital economy partner platforms later this year.
The statement claims that over 7 million MSMEs in Southeast Asia engage in cashless commerce but lack access to frictionless digital credit.
As more MSMEs begin selling online and transition to cashless payment methods for both their offline and online sales, this number is predicted to double by 2028.
With the help of Seedflex PAYS Advance, these MSMEs can improve their business growth by gaining access to credit based on their cashless commerce.
It mentioned that cashless merchants can maintain control over their business, capital, and growth with PAYS Advance’s frictionless line of credit.
Cashless retailers can access up to 10 weeks of sales revenue in advance and repay the credit through their preferred repayment partner with a dynamic credit solution that automatically adjusts based on future revenue projections and conveniently pays back the advance as a fractional deduction from future sales.
With a clear, one-time flat fee and no interest or other hidden fees, merchants can rest easy, according to the statement.
“Despite advances in fintech, the fundamentals of credit underwriting and collection have sadly not changed,” said Ritwik Ghosh, Co-Founder and Chief Executive Officer of Seedflex.
“Underwriting is primarily based on static and historical data while collection is rooted in fixed and pre-agreed spiky installments,
“Our aim is to change the game and redefine credit for cashless commerce by providing a new, fair, and transparent way for merchants to access financing that can help them scale and grow,” he added.
