Funding Societies, a digital financing company headquartered in Singapore, is launching new Shariah-compliant trade financing products for MSMEs in Malaysia.
The financing solutions are based on Commodity Murabahah (Tawarruq), or the practice of buying commodities with deferred prices before selling to a third party.
The zero-collateral financing is available for Malaysian MSMEs that have been operating for at least a year. Funding Societies offers a credit line of up to 1 million ringgit (US$228,000).
The Islamic fintech (iFinTech) solutions have no hidden fees and can be repaid through flexible options, the company website said. Businesses that are Shariah-compliant – or those that do not primarily work in the tobacco, liquor, or gambling sectors – can apply.