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FFG entered into a definitive agreement with the exiting shareholder of Smartfunding and fulfilled regulatory requirements to acquire a 19.9% stake in the company. The stake is in addition to a further 58.8% Fatfish owns via its Swedish subsidiary Abelco Investment Group.

Combined, Fatfish now holds 78.7% of Smartfunding and plans to leverage the shareholding to provide lending services for corporates across Asia.

This form of business finance can be used for a range of purposes, from short-term to long-term. In the short term, you could use the funds to improve your cash flow. For example, if you have had a busy period in your business and are waiting for invoices to be paid. In this case, you need to pay for expenses related to making the sales but you won’t be paid immediately. Alternatively, you could be heading into a busy season and need cash to increase your inventory to be ready for increased sales.

Provisional plans include enabling corporations to make online loan applications ranging between S$25,000 (A$25,000) and S$1 million (A$1 million), intended for the procurement of equipment or services. Written loans are then to be repaid in instalments over a 12 or 24-month period at “competitive” interest rates.

Please feel free to input and/or correct me if I am wrong.