Updated: Dec 27, 2019
Have you ever been rejected by getting a loan from a bank? Most likely you have; we all have. Whether it was for a personal loan or a commercial loan; we got rejected simply because we lacked documents or collateral to establish our ability to pay back the loan. And for many small business owners in Southeast Asia who are in brick-and-mortar businesses, building their case has become a painful process. Most business owners are left stuck in third gear, pumping the brakes instead of opening things up.
Let's take Ko Htike as an example. Ko Htike is an auto repair business in Myanmar looking to expand their business. It was established in 1993 and all of their business transactions were done manually. The methods that had allowed to build the modest empire were being tested to the limits. The expansion and development of their business was hindered by the complexities of acquiring capital from Myanmar banks. Ko Htike initially applied for a 500 million Kyatts working capital and expansion loan from banks but got REJECTED. The main reason for this rejection was that being an SME, Ko Htike operated in the traditional way. Keeping all documentation from 15 years of operations in physical paperwork resulting in a lack of evidence to prove the business’ legitimacy and profitability to financial institutions. Without the necessary collateral, it was next to impossible for Ko Htike to acquire the funding needed from banks.
This is where Kiu stepped in…. Kiu implemented the Kiu Business Management Platform(BMP), Ko Htike started to digitize their business processes and gradually eliminated the mountain of paperwork from the old processes; started to turn away from manual transactions and lessen human error. Furthermore, with automated transactions made through the Kiu platform, Ko Htike was able to monitor daily business transactions and finally acquire the long-awaited funding from Yoma Bank, a local bank in Myanmar. Yoma Bank was able to verify Ko Htike's credit worthiness using Kiu's built-in credit scoring engine and reporting to make a very fast credit worthiness decision to enable the loan to be disbursed.
Kiu aims to increase financial inclusion and create impact for the base of the pyramid in the ASEAN region through providing inclusive technology to enterprises with high potential for positive social impact and by mitigating risk for investors.
With Kiu’s technology, businesses not only increase their productivity through the digitization of processes but also get the chance to acquire funding easier from bank partners and financial institutions in order to achieve their goals.
You can start digitizing your business today. Find out more www.kiuglobal.com.
This post was first published in Linkedin Pulse
**Ko Htike was one of the first users of Kiu in Myanmar.