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Dhaka-based software company Dana Fintech and fashion sourcing firm Merchant Bay recently announced a partnership to extend embedded digital lending for small and medium enterprises (SMEs) in the readymade garments (RMG) sector. The latter will use the former’s embedded lending engine to generate business credit score of SME RMG factories.
This will enable the factories to access digital financing through partner banks on the same platform for instant end-to-end digitally-originated digital loan and invoice finance applications.
Merchant Bay is now connected to 300+ SME RMG factories. Dana Fintech is an embedded lending platform for banks and network partners.
Dhaka-based software company Dana Fintech and fashion sourcing firm Merchant Bay recently announced a partnership to extend embedded digital lending for small and medium enterprises (SMEs) in the readymade garments (RMG) sector. The latter will use the former’s embedded lending engine to generate business credit score of SME RMG factories.
This tie-up will bring SME RMG factories under digital financial inclusion, leveraging data-driven insights and digital lending capabilities for lenders, according to Bangladeshi media reports.
“Ninety per cent of the SMEs currently cannot avail loans from the formal sector for having neither credit score nor financial documents. On the other hand, banks are reluctant to offer the loans to SMEs because of not having a digital underwriting platform and high lending operation cost,” Dana chief executive officer Gazi Yar Mohammed said.
Fibre2Fashion News Desk (DS)
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