Click / Tap image to enlarge
Darrel Ang (left), a co-founder of CapBay, and Ethan Lim, the country manager of TheLorry.
CapBay (formerly known as Capital Bay), a multi-bank peer-to-peer (P2P) financing platform, is collaborating with TheLorry to launch the Express Financing programme to increase digital financing accessibility for the financially underserved small and medium enterprises (SMEs) within the logistics industry.
The programme's financing is extended to TheLorry's lorry driver SME base, and lorry drivers can now apply for collateral-free financing upfront from CapBay. TheLorry is a logistics platform that connects professional drivers with corporate and individual customers through an online marketplace.
Through another partnership with Touch 'n Go Sdn Bhd, CapBay is also offering lorry drivers Fleetpass through the Express Financing programme. Fleetpass is a post-paid-enabled Touch ‘n Go corporate card with extended credit terms where the toll usage can be paid up to 60 days later.
"Through the financing solutions offered by CapBay, driver-partners can now join us without much hesitation," says Nadhir Ashafiq, a co-founder and executive director of TheLorry.
"Ever since integrating our offerings with CapBay's Invoice Financing solution to support our business and driver-partner community, we have seen operational cost reduced as well as an improved cash flow position – all of this while empowering our driver-partners to unlock the weekly cash flow at the same time."
Through this collaboration, CapBay can access over 10,000 driver-partners on TheLorry platform, most of which are underserved by traditional banks and have very limited access to financing.
"Our business partners and team members have worked tirelessly to get the Express Financing programme up and cater to increased demand ahead of Hari Raya," says Darrel Ang, a co-founder of CapBay.
"It was designed to help even the smallest businesses and entrepreneurs. Many of our customers who would typically struggle to get traditional financing were happy to get it from us and in time for Hari Raya."
Market research conducted by CapBay and the United Nations Capital Development Fund (UNCDF) reveals that lorry drivers often fork out cash upfront to cover high day-to-day operational expenses, such as toll fees, fuel and vehicle maintenance costs, to carry out business-to-business (B2B) delivery jobs.
However, these lorry drivers will only receive their lump sum payment 30 to 60 days later. This is despite the fact that lorry drivers do not typically have much cash on hand. Many talk about having their personal loans rejected due to a lack of collateral, financial documents or poor credit scores.
"Being in the logistics industry is tough. Without the financing programme, I would have to fork out at least a month's worth of expenses in advance. It was difficult to keep my business afloat," says Shukur Sallih, the first to join the Express Financing programme.
"Since joining the programme, we have a better cash flow position and quicker turnover to do more deliveries! Even in the tough times now, access to financing really helped cushion the impact of Covid-19 and the movement control order (MCO)."
Those interested to sign up for the Express Financing programme and Fleetpass can click on the following links:
Express Payment: forms.capbay.com/thelorry-applicantdetails
No additional documents are required.
For more information on the Express Financing programme, please visit: capbay.com/expressfinancing