“Supply Chain Financing” Scheme Becomes Crowdo's Business Focus, Funds Purchase of Goods Supply for SMEs

Startups Crowdo recently introduced a new financing scheme to help SMEs in the trade sector. Through Supply Chain Financing (SFC) products, the platform focuses on financing the needs of supplying merchandise from suppliers (suppliers).

Through this new approach, the company has a mission to simplify the transaction chain between SMEs and suppliers, which is considered to provide efficiency in terms of business and transaction value.

In COO's release Crowdo Ikram Jeihan explained that basically SCF allows SMEs that act as buyers to extend the payment period to suppliers. In some business scenarios with limitations, the goods are received first for sale, then the proceeds from the sale are used to pay the cost of goods.

The problem is sometimes suppliers find it difficult to manage cash flow (cash flow) if too many people buy goods on credit. Crowdo is here, bridging with business financing/loan solutions to SMEs.

"Suppliers need not be afraid of their cash flow, as they will get paid earlier. Suppliers can also use Crowdo's invoicing or billing features, thus gaining access to their own faster. Expected to be win-win solution"Jean explained.

According to Crowdo, the scheme is also in accordance with the Code of Conduct for Information Technology-Based Lending and Borrowing Services (LPMUBTI) which was launched by the association some time ago.

Jeihan said that the potential for SCF is very large in Indonesia, so it can be optimized to increase the distribution of investment funds. From the data submitted, every year there is a financing gap for SMEs of up to 1.000 trillion Rupiah.

"SCF has an advantage compared to other (capital) products because the analysis process has been simplified without compromising the principle careful (prudence), verification, and business testing. (For investors) it also provides protection, because the funds are guaranteed by the supplier."

Until 2020, the company will focus on this SCF scheme. It is expected to absorb up to 60% of the existing financing in Crwodo. This contribution is expected to be able to realize healthy financial inclusion in Indonesia.

Crowdo officially present in Indonesia since 2016. Under the auspices of PT Mediator Komunitas Indonesia, they are currently registered and supervised by OJK. Focusing on financing businesses, the platform also provides a platform for businesses that want to raise funds with equity. This scheme is indeed new, but legally the OJK has also drawn up its rules, including registering and supervising startups that provide these services.

According to data as of September 2019, there are 127 players registered and supervised at OJK. A total of 13 of them have obtained business license status. The large number of players forces each platform to have a unique value, as Crwodo ultimately chooses to maximize its potential through SFC.