CapBay innovates with partner TheLorry, an online logistics platform to grant underserved SMEs in the logistics space access to affordable and collateral-free financing using alternative data.
CapBay makes it possible for lorry drivers, including those with poor credit scores, to relieve business cash flow pressures during Covid-19 and receive cash in time for Hari Raya celebrations
Lorry drivers in the financing program to receive cash upfront for Business-to-Business (B2B) jobs done and defer toll expenses, reversing the cash flow gap
CapBay, a leading Multi-Bank and Peer-to-Peer (P2P) Supply Chain Financing platform, collaborates with TheLorry to launch the Express Financing program. The Express Financing program is tailored to the logistics industry and aimed at increasing accessibility of digital financing solutions for the financially underserved SMEs. Integration was completed with partners to extend financing to TheLorry’s SME base. Lorry drivers can now easily apply for collateral-free financing upfront and defer toll expenses up to 60 days later.
CapBay has seen a spike in financing volumes in recent weeks for the Express Financing program as there has been increased activity in the logistics sector driven by a switch to e-commerce in light of Covid-19 risks. There has also been increased demand for financing ahead of the Hari Raya celebrations.
CapBay innovates with TheLorry to elevate the financing experience for their userbase
Through the collaboration, CapBay is able to access over 10,000 driver-partners on TheLorry platform, most of which are underserved by traditional banks and have very limited access to financing. CapBay enables fast and seamless onboarding with simplified credit checks, made possible using track record available from TheLorry’s platform marketplace. This means that even lorry drivers with poor credit score can enjoy favourable financing rates.
“Through the financing solutions offered by CapBay, driver-partners can now join us without much hesitation,” said Nadhir Ashafiq, Co-founder and Executive Director of TheLorry. “TheLorry offers a comprehensive and integrated marketplace model. We connect professional drivers with corporate and individual customers through game-changing technology. Ever since integrating our offerings with CapBay’s Invoice Financing solution to support our business and driver-partner community, we have seen operational costs reduced as well as improved cashflow position – all of this whilst empowering our driver-partners to unlock weekly cashflow at the same time.”
CapBay uses human-centred design tools provided by UNCDF to customize financing program for B40 lorry drivers
A market research was conducted with United Nations Capital Development Fund (UNCDF) with the aim of helping aspirational lorry drivers (many of whom fall within the B40 segment) improve the financial health of their logistics businesses. Findings reveal a huge cashflow gap as lorry drivers often fork out cash upfront to cover high day-to-day operational expenses such as toll, fuel and vehicle maintenance costs to carry out B2B delivery jobs, only to receive lump sum payment 30 to 60 days later. Many cited having personal loans rejected or being ineligible for business bank loans due to lack of collateral, financial data and having poor credit scores. More recently, the industry was further impacted by the Covid-19 pandemic and Movement Control Order (MCO), threatening the business continuity of SME lorry businesses with the widening cash flow gap.
“Being in the logistics industry is tough. Without the financing program, I would have to fork out at least a month’s worth of expenses in advance. It was difficult to keep my business afloat,” said Pelangi Desa Trading business owner Shukur Sallih, the very first and valued Express Financing Customer. “Since joining the program, we have better cash flow position and quicker turnover to do more deliveries! Even in tough times now, the access to financing really helped cushion the impact of Covid-MCO.”
It began as a pilot project under UNCDF’s Financial Innovation Lab, a collaboration between Malaysia Digital Economy Corporation (MDEC), Bank Negara Malaysia (BNM), and Metlife Foundation, to improve the financial health of low-to-moderate income people in Malaysia and CapBay was selected as its first cohort. The project also garnered support from MDEC and has since then received widespread interest from TheLorry’s driver-partner community.
“From day one of FinLab, CapBay was keen to serve the lorry drivers by understanding where their financial pressures lie. One year down the line, here we are, a one-stop solution that speaks to the needs of this underserved segment.” says April Khor, UNCDF’s Digital Innovation Specialist.
CapBay helps business partners move fast with enterprise-grade financing infrastructure and technology
CapBay’s strong technological expertise allows for end-to-end digitization and automation of the financing process. The team can process large volumes of transactions with values as low as RM10. CapBay’s leading technology has been recognised by the industry, having recently won the “Fintech Startup of the Year 2020” in Malaysia by The Asset Triple A Digital Awards 2020.
“Our business partners and team members have worked tirelessly to get the Express Financing program up and cater to the increased demand ahead of Hari Raya,” said Darrel Ang, 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. We have been a strong advocate of financial inclusiveness, and we hope our program will continue to scale in helping the B40s, during Covid-19 and beyond.”
For more information on the Express Financing Program, please visit: https://capbay.com/expressfinancing/.
CapBay (formerly known as CapitalBay) is an award-winning Multi-Bank Supply Chain Finance and Peer-to-Peer (P2P) Financing platform that helps SMEs grow and unlock cashflow trapped in their supply chain by providing financing solutions. Through our proprietary credit-decisioning model, businesses of all sizes can obtain short-term financing while banks and investors can participate in high-quality financing deals. Regulated by Securities Commission Malaysia (SC). CapBay was awarded “The Best FinTech Platform – Digital Supply Chain Finance in Asia-Pacific” by The Asian Banker in 2018 and “Fintech Start-up of the Year” by The Asset Triple A Awards 2020. CapBay is a proud recipient of the development grant from Cradle Fund Sdn Bhd (a subsidiary of Ministry of Finance Malaysia).
Founded in September 2014, TheLorry is a leading technology-empowered logistics platform in South-East Asia offering a comprehensive and integrated marketplace model, where we connect professional drivers with corporate and individual customers through game-changing technology.
United Nations Capital Development Fund (UNCDF) is the UN’s capital investment agency. By identifying those market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a broad diversity of SDGs.
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