There was a time when Vietnam’s share of the world GDP was 0.18%. That was the year 1980, but as of 2018 its percentage increased to 0.52% making it one of the world’s fastest growing economies.
This expansive growth along with urbanization has resulted in an improved standard of living for the people. But most importantly, it has given the space and environment for the SMEs and startups to grow. It is observed that in the recent times, small businesses and startups have played an important role in improving the economy, especially in developing countries such as Vietnam.
However, unfortunately, sustaining these businesses is where the problem arises.
Let’s dig a little deeper to understand this better.
Why is it difficult for the SMEs and startups to sustain?
For a startup, business funds are one of the most important factors required to keep them afloat. However, many of the banks turn down the SMEs and startups because of their stringent rules and regulations. The reasons why they reject SMEs include strict requirements on documentation, continuous paper work for the application process and extra interest rates on the received funds.
This is how the line of credit in Vietnam works for the most part. Based on the documentation provided, the application for a loan takes about 2 to 4 weeks to process.
In addition to this, only a few banks will allow you to access your funds, and in some other cases, the process of getting a small working capital can be time consuming. Lastly, lack of collateral also poses a huge barrier for SMEs and startups to receive business loans.
Is there a better line of credit available in Vietnam?
Beating the line of credit in Vietnam, traditional bank IVB (Indovina Bank) has partnered with Finaxar to provide business financing to small businesses and startups.
Finaxar is the financial institution that provides innovative, data-driven financing solutions for small businesses and startups. In Vietnam, Finaxar has partnered with IVB Bank and Cathay Holdings. A credit line powered by Finaxar’s FXR-ONE technology provides a unique combination to the Vietnamese entrepreneurs to work wonders in the SME world. The line of credit offered comes with a flexible repayment plan. In addition to which, there is no collateral required. Even the fee is charged only on the amount that is drawn.
Any small business in Vietnam can avail a credit limit as high as VND 500M and draw any amount as per the requirement. And to top it all off, the eligibility criteria is also not that difficult to fit in.
How does Finaxar Credit Line work in Vietnam
One of the reasons why Finaxar’s credit line is better than that of traditional bank’s is its Feasibility - be it the filling of the application form or the single fee that is charged only once.
a) To be able to apply for a loan at Finaxar, your company should have at least 6 months of revenue generation (a verifiable sales history). And, that is all that is required.
b) The application process is online and will take no more than 5 minutes of your time. It’s an easy sign up where you have to submit your business details and link your accounting software to the Finaxar App.
c) The account will get verified within 30 minutes by the expert team. You will also receive the credit line along with all the necessary information (approved amount, repayment schedule etc).
d) The funds will get transferred to your account within 24 hours of your submission of your drawdown request.
e) Not only getting a loan is easy at Finaxar, the repayment schedule is also extremely flexible, which is chosen by you, and only you. Now, instead of repaying the entire amount (and the interest on it) like the traditional banks, you just have to repay the amount you withdraw per your requirements.
And through it all, you are charged only a single fee on the drawdown amount, which is disclosed before you even sign the agreement. Do note that you will receive the funds by Finaxar partners - IVB Bank and Cathay Financial Holdings, and the technology platform is provided by Finaxar as it’s proven to be the best in Singapore already.
Why choose Finaxar for the line of credit in Vietnam?
As discussed above, the traditional line of credit in Vietnam is strict when it comes to Documentation, and the terms and conditions. And, it has also been established that small businesses and startups are necessary for the economy of Vietnam. The only way small businesses, startups and even enterprises survive is through funds and if they keep getting rejected by the banks, the country’s growth is bound to get affected. Whereas with easy and fast systems like that of Finaxar’s where for startups getting the funds is not only easy but, the repayment plan is easy as well.
With IVB introducing FXR ONE technology by Finaxar in Vietnam to provide loans online, businesses have greater opportunities to grow with the right funds in times of need.
So, if you own a small business or a startup, stop worrying about where to get the business
funds, and instead, focus on improving your product, and growing your business further. You can directly apply for the working capital right here.