Danamart P2P Lending Services Make it Easy for SMEs to Disburse Loans Online

The fintech lending industry in Indonesia is increasingly enlivened by new players, one of which is Danamart. This startup focuses on loans for SMEs with its two main products in the form of loans for bill payments (invoice financing) and PO payments (purchase order financing).

CEO and Co-Founder Danamart Patrick Gunadi explained, Indonesia still needs players for productive credit. Meanwhile, most lending players are currently focused on consumer credit payday cash loans, where there is great risk behind it.

"While there are not many p2p lending for business financing. In fact, in this segment the payment cycle is clear when lenders must exit, and so on," he explained to DailySocial.

To ensure the security of lenders and borrowers, Danamart works with various supporting parties such as credit insurance, banking and other institutions. In the event of a default, credit insurance will guarantee 80% of the total credit to return funds to the lender.

"Because we are the base marketplace, that's why it's important to maintain security from the right and left sides. All loans issued through Danamart have basically beencover by insurance. For that we tighten from the sides credit scoring-his."

credit scoring in Danamart, he continued, quite strict. Apart from having to complete the requested documents, a field team will visit the borrower's location to ensure the authenticity of the business. The team needs to meet face-to-face with director and shareholder representatives, to assess the borrower's ability and willingness to repay the loan.

After that, every borrower will get grade is it in grade A to E to determine the interest to be paid. The entire process from submitting to fundraising takes approximately 14 days. If 100% of the funds have been collected, the new borrower can withdraw them.

Borrowers can apply for loans ranging from IDR 100 million to IDR 2 billion. The minimum tenor is 1 month to 6 months. If you are late returning the loan, you will be charged daily interest of 0,2% which is valid for the next 60 days.

The current interest will stop after entering the 61st day, according to encouragement from the Indonesian Joint Financing Fintech Association (AFPI) to all of its members.

As for lenders, they can invest with a nominal value from IDR 1 million to IDR 2 billion, making it suitable for individual and corporate borrowers.

Target Danamart

Patrick said that the application was completely made online through the company's official website, there was no application available yet. However, the location of the temporary borrower is limited to Jakarta.

In terms of the business model, Danamart is ready to operate, but chooses to wait until it receives a certificate of registration from the OJK in order to maintain security in its business activities.

"The OJK recommends that until the registered letter is received then it can operate, we estimate that we will launch it next month or early next year."

After launch, it targets that in the early stages it can distribute loans of Rp. 100 billion. The company will also add loan products that are claimed not to exist in the fintech lending industry.

Patrick said the product would later be specifically for borrowers located in Jakarta and Bali only, because it was in accordance with the business contours in each region.

Danamart is ready to open one or two representative offices outside Java Island in order to increase its business penetration in Indonesia. So far, Danamart is still using its own funds for business development.