Aiming to make the financial world a better place, Polish entrepreneur Pawel Kuznicki founded Capital Match in 2014. His goal: to make it easier for small- and medium-sized enterprises (SMEs) to access affordable capital—and in the process, to help investors create high-growth fixed income. Capital Match has now channelled more than USD66 million of funding, and is the largest invoice-financing platform in southeast Asia.
In Hong Kong, it’s difficult for SMEs to obtain flexible sources of financing, says Pawel. This means cashflow issues can have a big impact on SME owners, who aren’t always able to borrow from banks.
“Banks are not interested in those customers, and few other players provide capital to SMEs in this market,” says Pawel. “The industry is definitely underserved. At the same time, investors are hungry for yield. We create a channel for both parties to exchange capital for fixed-income return. Through the online platform, we provide SMEs with working capital that can be afforded by professional investors.”
One of Capital Match’s services involves purchasing outstanding invoices from SMEs, advancing more than 80 per cent of the invoice value to the company. It’s using an online platform to connect investors with companies, and in the process forging mutually beneficial relationships between SMEs and professional and institutional investors.
“We offer dedicated and personalised services,” says Pawel. “We’re flexible in terms of our customised facilities—terms, period, discount rate.”
When Capital Match was ready to launch in Hong Kong, Sherry Ngai, Capital Match HK general manager, found that traditional banks were impersonal and slow off the mark—so she turned to Neat.
“As an established and well-funded company in Singapore, we were fully ready to launch in Hong Kong at full speed, but then we found out the process to open a bank account with traditional banks was very long,” she says. “Our business was rearing to go, and we couldn’t afford to wait any longer. Neat was the perfect solution.”
Sherry values the level of service provided by Neat, as well as its fast pace—solutions are always delivered promptly, while payments and transfers are quick.
“We’ve enjoyed how simple the application process has been, too: we filled in all registration forms and submitted documents online through their platform. The experience has been simple and convenient.”