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Financial technology, or fintech, is rapidly expanding in the Philippines and is becoming known to Filipinos, especially Filipino small and medium-sized enterprises (SMEs). Fintech digitizes financial services and makes financial transactions easier and better. It provides SMEs and business owners like yours with access to alternative financial services and funding opportunities in innovative ways.
One of the many types of financial technology is crowdfunding. Philippine fintech crowdfunding, particularly debt crowdfunding, utilizes online platforms to raise funds for SMEs like you by connecting you to various qualified investors.
In this article, learn the five (5) key qualities you should look for when looking for a reliable financial technology crowdfunding platform in the Philippines.
What is fintech debt crowdfunding?
Fintech debt crowdfunding is an alternative financing solution for SMEs to obtain funds or additional working capital. It is done through intermediaries that have a pool of investors, and it is typically done via an online crowdfunding platform.
Fintech debt crowdfunding has emerged as a powerful tool for SMEs like you who are looking for financing solutions. Through fintech debt crowdfunding platforms, you can grow and maximize your potential by having faster and wider access to capital and the chance to connect with various investors.
Fintech debt crowdfunding platforms have many benefits for you, such as:
Key qualities of a reliable crowdfunding platform
There are many crowdfunding platforms in the Philippines that are available for you to utilize. But how do you know the right crowdfunding platform for your business?
- Secure and Trusted
Every crowdfunding platform’s foundation must be built on security and trust, as these platforms will have access to your sensitive financial information. Therefore, it is important to navigate through crowdfunding platforms and check the platform’s privacy policy and terms of use to make sure of their security.
A reputable crowdfunding platform must have security systems and measures, like encryption, one-time passwords (OTP), and two-factor authentication, to avoid potential cybersecurity threats and unauthorized access. The safety of your data should be a priority for fintech crowdfunding platforms.
- SEC-Registered
The Philippine Securities Exchange Commission (SEC) is the government agency responsible for licensing and regulating crowdfunding platforms in the country. Hence, SEC-licensed fintech crowdfunding platforms are the ones you must seek. Crowdfunding is only valid when done through an SEC-registered platform.
Furthermore, there are Securities Exchange Commission-implemented rules and regulations that SEC-registered crowdfunding platforms must follow. These rules and regulations are meant to protect both you and investors from potential scams and fraud and to ensure that the platforms operate within ethical and legal boundaries.
- Transparent
A credible fintech crowdfunding platform must be transparent. Crowdfunding platforms should disclose relevant information to you as you apply for financing so that you are informed and have an understanding of how it works.
- Accessible
A reliable crowdfunding platform must be accessible to you and those who need funding. Compared to traditional funding processes, applications are much more convenient on crowdfunding platforms for the following reasons:
- The application process is 100% online, saving you resources and, most importantly, your time.
- FAQs are made available for you, which provide necessary information about the company, products, processes, and other relevant information.
- Ensure excellent customer service for SMEs like you by providing personalized assistance and a dedicated relationship manager to address your unique financing needs.
- Onboards trusted investors
One of the qualities that SMEs must look for in a debt crowdfunding platform is how it onboards credible investors. SMEs have to ensure that funds come from investors who are qualified, legit, and follow the government's rules and regulations.
Following the rules of the SEC, a trusted crowdfunding platform should have qualified institutional or individual investors (QIBs). These are investors who are SEC-certified and have met specific financial criteria and requirements to be qualified buyers.
Finding a reliable crowdfunding platform for you to grow your business can be challenging, but with these five (5) key qualities, you can find an avenue for you to have additional sources of funds from a reliable crowdfunding platform.
Looking for the right debt crowdfunding platform that can connect you with trusted investors? Investree Philippines is a reliable platform to help your business grow. Investree Philippines is the first SEC-licensed debt crowdfunding platform in the Philippines that aims to provide more accessible and affordable financing solutions to Filipino SMEs like you.
Explore Investree’s crowdfunding platform to learn more about its collateral-free, reliable, and risk-based invoice financing and purchase-order financing based on a debt crowdfunding concept with low interest rates and flexible payment terms at www.investree.ph.
As a fintech company, Investree is committed to promoting financial inclusion in the Philippines and helping SMEs grow and succeed. SEC-qualified institutional investors and individual investors are waiting for you here. To apply for funding in Investree, create an account here
To learn more about business growth strategies, the benefits of crowdfunding platforms for SMEs, invoice financing, or purchase order financing, you may read more articles here.
